Brandman Retail FY26: Scaling a premium footwear platform while shifting toward B2C

Brandman Retail Limited closed FY26 with a sharper financial profile and a clearer strategy than in earlier years. The company reported revenue from operations of ₹162.41 crore for FY26, up 20.04% year on year from ₹135.29 crore in FY25. Profitability remained strong, with EBITDA at ₹37.07 crore and an EBITDA margin of 22.82%. PAT came in at ₹25.29 crore with a PAT margin of 15.57%.

The investor presentation and the FY26 earnings call position this performance as part of a broader transition. Historically, Brandman’s revenue mix has been anchored in B2B and institutional channels. Management repeatedly stated that the mix is now intended to shift toward direct consumer revenue as the store base matures and digital channels scale.

The operating model: one inventory across four channels

Brandman describes itself as a retail and distribution company selling premium international brands across footwear, apparel, and accessories. It operates 22 outlets across 12 cities, comprising 14 New Balance exclusive brand outlets and 8 Sneakrz multi-brand outlets. The platform is supported by marketplace selling, owned D2C sites, and institutional and B2B distribution.

The company’s multi-channel construct is central to its strategy. The deck outlines four distribution channels: retail, e-commerce marketplaces, D2C, and B2B. In the call, management described how stores also act as fulfillment points, with orders routed by pin code to the nearest node. The company also cited ERP-linked systems aimed at real-time inventory visibility and synchronization between stores and online orders.

Financial summary (FY26)

The step-up in margins versus FY24 is a notable data point in the presentation, though the documents do not provide a detailed bridge by channel or by brand.

Revenue mix: retail share is rising, but B2B remains large

Brandman provides an explicit revenue mix disclosure by channel for FY25 and FY26. In FY26, retail stores contributed 30.6% of revenue from operations and e-commerce contributed 7.8%, while B2B contributed 61.6%. The prior year mix was 22% retail, 7.6% e-commerce, and 70.4% B2B.

In absolute terms, FY26 channel revenues were disclosed as:

Management framed the reduction in B2B share as intentional. It characterized a portion of B2B as driven by liquidation-led sales and exports, which it does not want to rely on as the long-term identity of the business.

Portfolio expansion and the role of new brands

The deck lists 10 international brands under distribution, retail partnership, and licensing agreements: New Balance, ANTA, Saucony, Wilson, Rockport, Skechers, On Running, Adidas, Asics, and Puma. It also highlights the onboarding of ANTA and Wilson as a strategic move. ANTA is positioned as a premium performance sportswear brand and Wilson as a sports equipment and accessories adjacency.

In the call, management clarified that most sourcing is domestic through Indian subsidiaries for brands such as New Balance, Adidas, Asics, Puma, and Skechers. It stated that only ANTA, Saucony, and Wilson are imported and therefore exposed to INR depreciation.

One investor directly asked about currency risk and price pass-through. Management said it currently has enough buffer in margins to absorb FX impact without passing it on immediately and that it would seek support from brands if currency movement becomes a burden. No hedging policy or quantified sensitivity was disclosed.

Expansion plan: doubling stores by FY27

The presentation states that expansion is planned to double the store base by FY27. On the call, management stated that the company plans to open 22 new stores and that the funding for this rollout will come from IPO proceeds. It also disclosed a brand-level mix for those new stores: 5 ANTA, 2 Wilson, 5 Saucony, 7 Sneakrz, and the remainder New Balance.

Management acknowledged the typical concern that new stores take time to mature and can pressure margins in the short term. It responded with a measurable claim: based on its track record, new stores break even within 2 years. The documents do not provide store-level economics, capex per store, or target revenue per square foot.

The company is also building a presence in airport retail through agreements referenced with DLF and Adani Airports, including a plan for airport outlets. Management argued that airports provide high footfall and brand visibility, even if conversion is not immediate.

Cost, seasonality, and quarter-to-quarter margin variability

During the Q and A, investors questioned quarterly profitability fluctuations and discounting impacts. Management explained that the second half can include end-of-season sales and event discounting, while the first half can benefit from fresher season inventory at higher realized prices.

Separately, management addressed an investor’s question on unusually high profitability in a specific quarter, attributing it to export-led B2B sales. It referenced sales to a GCC channel partner tied to liquidation inventory. This reinforces that the B2B component is not only domestic wholesale but also includes export-linked transactions.

Marketing spend was mentioned briefly. The CFO stated that advertising and marketing cost in FY26 was around 5% to 6% of revenue.

What to track going forward

From the disclosed mix, Brandman’s FY26 story is not only growth but also rebalancing. Retail stores grew faster than the overall business and increased their share of revenue, while B2B remains the majority channel. Management’s stated aim is to make B2C the dominant revenue driver over FY27 to FY28, supported by store rollouts and digital scaling.

The key variables that remain unquantified in the documents are store-level unit economics, the pace at which new stores reach maturity, and how margin structure evolves as the channel mix shifts. Management also confirmed that BIS approval for On Running is still pending, which is an operational dependency to watch for that brand’s expansion.

Brandman enters FY27 with a defined expansion plan, a stated use of IPO proceeds for store rollout, and a clear intent to build Sneakrz as an owned retail brand alongside marketplace and D2C growth. The FY26 disclosures provide a solid base of reported financial performance and a measurable channel mix, but more granular execution metrics will be needed over time to independently validate the scale-up claims.