Baazar Style Retail Limited: Festive Quarter Fuels Robust Growth and Strategic Expansion

Baazar Style Retail Limited, a prominent value fashion retailer in Eastern India, has delivered an exceptional performance for the second quarter and first half of the financial year 2026. The company reported its highest-ever quarterly and half-yearly revenues, driven by strong demand and strategic initiatives. For Q2 FY26, revenue from operations surged by 71% year-on-year to INR 531.7 crore, while for H1 FY26, it grew by 55% year-on-year to INR 909.6 crore. This impressive top-line growth was complemented by significant improvements in profitability, with Q2 EBITDA rising 184% to INR 69.1 crore and H1 EBITDA increasing 92% to INR 127.4 crore. The company's Profit After Tax (PAT) also saw a remarkable jump, with Q2 PAT up 676% to INR 51.5 crore and H1 PAT up 672% to INR 53.5 crore.

The strong financial results reflect the company's regional leadership and effective execution strategy. The core market experienced a 70% year-on-year growth in Q2, while focus markets recorded an even higher 77% growth, underscoring the broad-based strength of the brand. This performance was particularly aided by the early arrival of the festive season, a key consumption period in their primary markets. The company's wide product portfolio, catering to the entire family, continues to drive higher footfalls and improved basket sizes.

Baazar Style Retail Limited is making significant headway in its digital and warehouse transformation journey, with a planned investment of INR 20-25 crore this year. This investment is aimed at building an integrated and intelligent technology backbone. The implementation of SAP for enterprise resource planning is expected to go live in the next six months, enabling real-time, data-driven decision-making. Additionally, the company is deploying Infor for warehouse management, integrating Goldratt's advanced replenishment solution, and Domo for business intelligence and analytics. These technological advancements are designed to streamline processes, enhance supply chain visibility, and optimize inventory turnaround, laying the foundation for a scalable organization.

Operational efficiency has seen notable improvements, with inventory days reducing from 108 days in Q2 FY25 to 86 days in Q2 FY26. Trade payable days also decreased from 81 to 70 in the same period, reflecting better working capital management. The company's private label strategy continues to be a strong pillar of its business. A healthy portfolio of 11 private labels contributed 59% of the overall revenue in H1 FY26, amounting to INR 535.8 crore. Management aims to increase this contribution to 65% of sales by FY27, leveraging attractive pricing and enhanced customer loyalty. One of its established brands, Square Up, achieved its highest half-yearly revenue of INR 226.5 crore in H1 FY26.

Looking ahead, Baazar Style Retail Limited is confident in its growth trajectory. The company has revised its top-line growth guidance for FY26 from 25% to 30% and reaffirms its target of opening 40-50 new stores this year, having already added 36 net stores in the first half. The total retail area now stands at 2.3 million square feet, a 38% increase over last year. The management's conservative approach to guidance, coupled with a strong focus on operational discipline and strategic expansion, positions the company well to capitalize on India's consumption story. The company's commitment to providing quality products at affordable pricing, especially in the under-penetrated Tier-3 and Tier-4 markets, is expected to sustain its growth momentum and reinforce investor trust.