Baazar Style posts Rs 103.1 crore H1 EBITDA as productivity falls

Baazar Style Retail Limited reported Rs 103.1 crore in earnings before interest, tax, depreciation and amortisation (EBITDA) for the first half of financial year 2027 (H1 FY27) ended 30 September 2026, on total income of Rs 970.5 crore, while sales per square foot per month fell 14% year on year to Rs 660.

What did Baazar Style report for H1 FY27?

Baazar Style reported H1 FY27 total income of Rs 970.5 crore, gross profit of Rs 305.2 crore and EBITDA of Rs 103.1 crore for the half year ended 30 September 2026. Gross profit margin was 31.6%, while EBITDA margin was 10.69%. The company described the quarter and half-year results as unaudited.

The second quarter (Q2) FY27 contributed Rs 480.6 crore of total income, Rs 139.4 crore of gross profit and Rs 31.2 crore of EBITDA. Q2 gross profit margin was 29.1% and EBITDA margin was 6.52%, compared with respective H1 margins of 31.6% and 10.69%. The release did not provide standalone first-quarter figures, net profit, cash flow or debt data.

H1 EBITDA of Rs 103.1 crore was more than three times Q2 EBITDA of Rs 31.2 crore, while H1 total income was about twice the quarterly figure. This is an arithmetic comparison of the reported H1 and Q2 numbers, rather than a separately disclosed first-quarter result.

Why did Baazar Style's sales per square foot decline?

Baazar Style said sales per square foot per month were Rs 660 in H1 FY27, down 14% year on year. The release did not identify a specific cause, but retail area rose 16.4% year on year to 2.68 million square feet as of 30 September 2026, while the number of bills increased 5.1%.

The company had 283 stores in 10 states at 30 September 2026, representing 13.2% year-on-year growth, and average store size rose 2.8% to 9,442 square feet. Retail area therefore grew faster than store count, alongside the reported decline in sales generated per square foot each month.

Customer activity rose in absolute terms during H1 FY27, with bills reaching 10.93 million and units sold reaching 39.4 million. Units sold grew 14.1% year on year, exceeding the 5.1% rise in bills by 9 percentage points. The release did not disclose average transaction value, units per bill or comparable-store sales growth.

How quickly did Baazar Style expand its store network?

Baazar Style expanded from 283 stores on 30 September 2026 to 293 stores by 6 November 2026, adding 10 outlets after the half-year reporting date. The 283-store network operated across 10 states and was 13.2% larger than a year earlier.

Retail area of 2.68 million square feet at 30 September 2026 grew 16.4% year on year, compared with 13.2% growth in the store network. That difference is consistent with the 2.8% increase in average store size to 9,442 square feet, although the release did not separate the sales productivity of newly opened stores from older outlets.

Baazar Style operates the Style Baazar and Express Baazar formats and uses a cluster-based expansion strategy in Tier-II, Tier-III and Tier-IV markets. Management said it was working to improve store productivity and operating efficiencies as the 293-store network expands, but did not provide a sales-per-square-foot target or timetable.

What was Baazar Style's sales mix in H1 FY27?

Baazar Style generated 61% of H1 FY27 sales from private labels, 1.8 percentage points more than a year earlier. Apparel represented 87% of sales and general merchandise accounted for 13%, leaving apparel as the largest disclosed merchandise category.

Core markets contributed 79% of H1 FY27 sales, while focus markets contributed 21%. The release did not define the states included in either market group or disclose their separate revenue growth, profitability or store counts.

Management linked the 61% private-label contribution to its focus on private-label brands, disciplined merchandise planning and a deeper presence in core and focus markets. The announcement did not provide private-label revenue in rupees, category-level gross margins or inventory data, so the financial effect of the 1.8-percentage-point mix change cannot be calculated from the release.

Conclusion

Baazar Style combined Rs 103.1 crore of H1 FY27 EBITDA and a 10.69% EBITDA margin with expansion in its store base, retail area, bills and units sold. The main operating contrast was that the network reached 283 stores and 2.68 million square feet at 30 September 2026 while sales productivity declined 14% to Rs 660 per square foot per month.

Management expects Q3 and Q4 FY27 to be its strongest quarters and has stated a turnover ambition of Rs 2,500 crore for FY27, Rs 3,800 crore for FY28 and Rs 5,600 crore for FY29. It is also working towards 600 stores by FY29 and has disclosed a planned Green SHIFT solar project aimed at long-term energy security and cost efficiency.