Go Fashion Q2 profit falls 59% as revenue slips and costs rise

Go Fashion (India) Limited reported profit after tax of Rs 8.97 crore for the quarter ended September 30, 2026, down 59% from Rs 21.80 crore a year earlier. Revenue from operations fell 3% to Rs 217.59 crore, while the first-half accounts included a Rs 9.88 crore property, plant and equipment write-off related to store consolidation.

Why did Go Fashion’s Q2 profit fall?

Go Fashion’s September-quarter profit fell as expenses increased while income declined. Total income was Rs 224.02 crore in the quarter ended September 30, 2026, down from Rs 231.47 crore a year earlier, while total expenses rose to Rs 211.89 crore from Rs 202.46 crore. Profit before tax therefore decreased to Rs 12.13 crore from Rs 29.00 crore.

The sequential comparison also showed lower earnings in the September quarter. Revenue from operations declined from Rs 222.84 crore in the quarter ended June 30, 2026, to Rs 217.59 crore, and profit after tax fell from Rs 16.49 crore to Rs 8.97 crore. Basic earnings per share, not annualised, were Rs 1.70, compared with Rs 3.14 in the preceding quarter and Rs 4.04 a year earlier.

What was Go Fashion’s store consolidation write-off?

Go Fashion disclosed a Rs 9.88 crore write-off of property, plant and equipment within other expenses for the six months ended September 30, 2026, attributing it to consolidation of stores. The filing does not allocate that write-off between the June and September quarters, so its precise effect on September-quarter profit is not disclosed.

The first-half property, plant and equipment write-off was higher than Rs 1.73 crore in the six months ended September 30, 2025, according to the cash-flow statement. Other expenses rose to Rs 67.86 crore in the 2026 first half from Rs 55.39 crore in the previous corresponding period, an increase of Rs 12.46 crore. The disclosed store-consolidation item was one component of that increase.

For the quarter ended September 30, 2026, other expenses were Rs 33.41 crore, versus Rs 27.99 crore a year earlier and Rs 34.45 crore in the June quarter. Depreciation and amortisation increased to Rs 34.65 crore from Rs 32.79 crore in the year-earlier quarter, while finance costs were Rs 12.26 crore compared with Rs 12.15 crore.

How did Go Fashion perform in the first half?

Go Fashion’s profit after tax for the six months ended September 30, 2026 fell 42% to Rs 25.46 crore from Rs 44.06 crore in the corresponding 2025 period. Revenue from operations declined 1% to Rs 440.43 crore from Rs 447.00 crore, while total expenses increased 5% to Rs 421.10 crore from Rs 400.82 crore.

Profit before tax for the first half decreased to Rs 34.17 crore from Rs 58.69 crore. Total tax expense declined to Rs 8.71 crore from Rs 14.62 crore, but did not offset the Rs 24.52 crore reduction in pre-tax profit. Basic and diluted earnings per share, neither annualised, were Rs 4.84 compared with Rs 8.16 a year earlier.

Inventory movements also differed materially between the two first-half periods. Changes in inventories were an expense of Rs 42.52 crore in the six months ended September 30, 2026, compared with negative Rs 13.70 crore in the prior-year period. Cost of materials consumed fell to Rs 72.69 crore from Rs 96.63 crore, and subcontracting charges decreased to Rs 16.56 crore from Rs 23.65 crore.

What do Go Fashion’s assets and liabilities show?

Go Fashion reported total assets of Rs 1,331.58 crore at September 30, 2026, compared with Rs 1,295.64 crore at March 31, 2026. Total equity increased to Rs 715.72 crore from Rs 690.29 crore, while current liabilities were broadly unchanged at Rs 174.69 crore from Rs 175.15 crore.

Inventory fell to Rs 226.41 crore at September 30 from Rs 268.66 crore at March 31, a reduction of Rs 42.25 crore. Trade receivables increased to Rs 125.77 crore from Rs 105.68 crore, while bank balances other than cash and cash equivalents rose to Rs 164.85 crore from Rs 141.56 crore. Cash and cash equivalents declined to Rs 8.83 crore from Rs 13.09 crore.

Non-current lease liabilities were Rs 431.74 crore at September 30, 2026, compared with Rs 422.41 crore at March 31. Current lease liabilities decreased to Rs 97.85 crore from Rs 110.08 crore over the same period. The company reported no subsidiaries, associates or joint ventures at either September 30, 2026 or March 31, 2026.

What did Go Fashion’s cash flow and business disclosure show?

Go Fashion generated net cash from operating activities of Rs 125.50 crore in the six months ended September 30, 2026, up from Rs 95.11 crore a year earlier. The cash-flow statement recorded Rs 13.41 crore of working-capital inflows in the 2026 period, compared with Rs 24.83 crore of working-capital outflows in the prior-year period.

Investing activities used Rs 61.35 crore in the first half, compared with Rs 23.93 crore used in the corresponding 2025 period. Capital expenditure on property, plant and equipment, intangible assets and capital work in progress was Rs 32.99 crore, versus Rs 19.61 crore a year earlier. Financing activities used Rs 72.97 crore, including Rs 72.92 crore for lease-liability payments including interest.

Go Fashion says its operations predominantly relate to retailing women’s bottom-wear and are reported as one business segment under Indian Accounting Standard 108, Operating Segments. The filing therefore provides no separate revenue, profit, format, geographic or product-category disclosure for the Rs 440.43 crore first-half revenue total. The board approved the unaudited results on October 30, 2026 after audit-committee review.

Conclusion

Go Fashion’s September-quarter results show a modest decline in revenue alongside a materially larger reduction in profit. Revenue from operations fell by Rs 6.58 crore year on year, while total expenses increased by Rs 9.42 crore, reducing profit after tax by Rs 12.84 crore. The Rs 9.88 crore first-half store-consolidation write-off identifies one disclosed cost within the increase in other expenses.

The next disclosure to watch is whether Go Fashion reports further store-consolidation charges, because the filing gives no completion date, target or quarter-by-quarter allocation for the Rs 9.88 crore write-off. Investors can also monitor whether the September 30 inventory balance of Rs 226.41 crore and first-half operating cash flow of Rs 125.50 crore change in subsequent reported results.