Go Fashion FY26 revenue slipped as PAT dropped 37% from FY25

Go Fashion (India) Limited reported a FY26 reversal: revenue was Rs 838.0 crore, 1.2% below FY25, and profit after tax fell 36.7% to Rs 59.2 crore. Earnings before interest, tax, depreciation and amortisation (EBITDA) declined 11.5% to Rs 237.1 crore, while PAT margin contracted to 7.1% from 11.0%.

How did Go Fashion’s revenue change in FY26?

Go Fashion’s total revenue fell by Rs 10.2 crore to Rs 838.0 crore in FY26 from Rs 848.2 crore in FY25. The latest year was the only annual revenue decline in the five-year audited series, after revenue increased from Rs 401.3 crore in FY22 to Rs 665.3 crore in FY23, Rs 762.8 crore in FY24 and Rs 848.2 crore in FY25.

Gross profit declined by Rs 7.5 crore to Rs 529.3 crore in FY26 from Rs 536.8 crore in FY25. Gross margin was largely unchanged at 63.2%, compared with 63.3% in FY25, and remained above the 60.1% recorded in FY22 and 61.7% in FY24.

FY26 revenue was still Rs 436.7 crore above the FY22 level, and gross profit was Rs 288.2 crore higher than the Rs 241.1 crore reported in that year. However, the FY25-to-FY26 comparison shows that the expansion in revenue and gross profit recorded through FY25 did not continue in the latest financial year.

Why did Go Fashion’s profit decline in FY26?

Go Fashion’s profit decline was accompanied by lower revenue and gross profit alongside higher employee and other expenses. Employee cost increased by Rs 17.7 crore to Rs 177.9 crore in FY26, while other expenses rose by Rs 5.7 crore to Rs 114.3 crore; EBITDA consequently declined by Rs 30.9 crore from Rs 268.0 crore.

EBITDA margin fell to 28.3% in FY26 from 31.6% in FY25, a decline of 3.3 percentage points. The FY26 margin was also below 31.8% in FY24, 31.9% in FY23 and 30.5% in FY22, making it the lowest level in the five years shown.

Below EBITDA, depreciation rose by Rs 11.0 crore to Rs 134.7 crore and finance cost increased by Rs 3.0 crore to Rs 49.4 crore. Earnings before interest and tax declined by Rs 41.3 crore to Rs 128.4 crore, while profit before tax fell by Rs 44.3 crore to Rs 79.0 crore.

Tax expense decreased to Rs 19.9 crore from Rs 29.8 crore, but PAT still declined from Rs 93.5 crore to Rs 59.2 crore. PAT margin fell by 3.9 percentage points to 7.1%, while earnings per share decreased to Rs 10.97 from Rs 17.30.

What changed on Go Fashion’s balance sheet in FY26?

Go Fashion’s total assets increased by Rs 15.3 crore to Rs 1,295.6 crore at 31 March 2026 from Rs 1,280.3 crore a year earlier. Non-current assets rose by Rs 52.6 crore to Rs 697.1 crore, including right-of-use assets of Rs 463.2 crore and other financial assets of Rs 67.5 crore.

Current assets declined by Rs 37.3 crore to Rs 598.5 crore at 31 March 2026. Inventories increased by Rs 31.1 crore to Rs 268.7 crore, while bank balances other than cash declined by Rs 80.6 crore to Rs 141.6 crore; trade receivables were unchanged at Rs 105.7 crore.

Total equity fell by Rs 7.1 crore to Rs 690.3 crore, with other equity decreasing to Rs 637.7 crore from Rs 643.4 crore and share capital declining to Rs 52.6 crore from Rs 54.0 crore. Total liabilities increased by Rs 22.4 crore, including current lease liabilities of Rs 110.1 crore and non-current lease liabilities of Rs 422.4 crore; current borrowings remained nil in both years.

How did Go Fashion’s returns and operating cash flow move?

Go Fashion reported return on equity of 8.9% at March 2026, down from 15.0% at March 2025, while return on capital employed fell to 11.5% from 19.2%. The presentation calculates both ratios without the impact of Indian Accounting Standard 116, or Ind AS 116.

The FY26 return on equity was below the 17.3% recorded at March 2023 and 16.2% at March 2024, though above the 8.1% reported at March 2022. Return on capital employed returned to the 11.5% level of March 2022 after reaching 15.9% in March 2023, 19.1% in March 2024 and 19.2% in March 2025.

Cash flow from operations fell by Rs 34 crore to Rs 165 crore in FY26 from Rs 199 crore in FY25. It remained above Rs 104 crore in FY23 and Rs 33 crore in FY22, but was below the Rs 219 crore reported in FY24.

The FY26 operating cash flow decline coincided with inventories increasing by Rs 31.1 crore at 31 March 2026. The presentation notes that FY22 financials were affected by Covid-19-induced lockdowns, so the FY25-to-FY26 movements provide the closest comparison for the latest reversal in revenue, EBITDA, PAT, returns and operating cash flow.

Conclusion

Go Fashion’s FY26 results show a much larger deterioration in profit than in revenue. Revenue declined by Rs 10.2 crore and gross margin was nearly stable, but higher employee cost, other expenses, depreciation and finance cost coincided with a Rs 34.3 crore reduction in PAT, lower return ratios and reduced operating cash flow. The balance sheet also carried higher inventories and lease liabilities, alongside lower bank balances.

The presentation does not disclose an FY27 revenue, margin, profit or return target, growth plan, or scheduled financial event. The next reported financial update will therefore be relevant for changes in the FY26 EBITDA margin of 28.3%, inventory of Rs 268.7 crore and cash flow from operations of Rs 165 crore.