SS Retail franchise models account for 74% of revenue

SS Retail Limited generated 74.19% of Fiscal 2026 revenue from company-owned franchisee-operated and franchisee-owned franchisee-operated stores. These franchise-run formats produced Rs 1,744.26 crore of Rs 2,351.03 crore in consolidated revenue from operations and accounted for 419 of 503 stores as at March 31, 2026.

How much of SS Retail revenue comes from franchise models?

SS Retail derived 74.19% of Fiscal 2026 revenue from its combined COFO and FOFO models, compared with 78.03% in Fiscal 2025 and 77.79% in Fiscal 2024. COFO means company owned and franchisee operated, while FOFO means franchisee owned and franchisee operated. Fiscal 2026 figures are consolidated, including subsidiaries Olineo and Nexora, whereas Fiscal 2025 and Fiscal 2024 figures are standalone.

COFO was SS Retail’s largest revenue channel in Fiscal 2026, producing Rs 1,565.65 crore, or 66.59% of revenue from operations. FOFO contributed Rs 178.62 crore, or 7.60%, taking the combined franchise-model contribution to Rs 1,744.26 crore. Company-owned and company-operated, or COCO, stores produced Rs 500.74 crore, or 21.30%, during Fiscal 2026.

The combined COFO and FOFO share declined by 3.84 percentage points from Fiscal 2025 to Fiscal 2026, while their revenue increased by Rs 497.43 crore. COFO’s share fell from 72.53% to 66.59%, while FOFO’s share rose from 5.50% to 7.60% and COCO’s share increased from 17.17% to 21.30%. The change must be read alongside the shift from standalone reporting in Fiscal 2025 to consolidated reporting in Fiscal 2026.

How do SS Retail’s COFO and FOFO models differ?

SS Retail leases COFO stores but franchisee partners operate them, while franchisee partners both lease and operate FOFO stores. Both formats therefore rely on franchisees for store operations, but the property commitment differs. In the COCO model, SS Retail leases or owns the premises and operates the stores itself.

SS Retail had 316 COFO stores, 103 FOFO stores and 84 COCO stores as at March 31, 2026. The 419 COFO and FOFO locations represented 83.30% of the 503-store network, while COCO represented the remaining 84 locations. The 74.19% revenue contribution from COFO and FOFO is consequently not a measure of stores that SS Retail does not lease, because SS Retail leases the COFO sites.

Corporate sales were reported separately from the three store formats at Rs 109.80 crore, or 4.67% of Fiscal 2026 revenue from operations. SS Retail defines corporate sales as wholesale mobile-phone sales through the company and accessory sales through Nexora. Fiscal 2026 also included a negative Rs 3.78 crore adjustment for inter-company transactions eliminated after the acquisition of Olineo and Nexora’s commencement of business.

How fast has SS Retail expanded franchise-operated stores?

SS Retail expanded its COFO and FOFO network from 208 stores on March 31, 2024 to 419 stores on March 31, 2026, a net addition of 211 stores. COFO added 127 net stores to reach 316, while FOFO added 84 net stores to reach 103. The total network increased by 267 net stores over the same two-year period, from 236 to 503.

FOFO recorded a reported compound annual growth rate, or CAGR, of 132.83% in store additions net of closures between March 31, 2024 and March 31, 2026, compared with 29.30% for COFO and 73.21% for COCO. SS Retail says the principal reason for FOFO’s increase was its Fiscal 2026 acquisition of a majority shareholding in Olineo, whose full 34-store network operates under the FOFO model. That acquisition also forms part of the consolidated Fiscal 2026 store and revenue data.

COFO remained the larger format despite FOFO’s faster reported store-growth rate. COFO accounted for 62.82% of the March 31, 2026 network, while FOFO accounted for 20.48%. The franchisee-operated formats therefore made up more than four-fifths of the physical network while generating nearly three-quarters of revenue from operations.

What could affect SS Retail’s franchise-led revenue model?

SS Retail says its business growth, prospects, financial condition and results could be adversely affected if COFO and FOFO models are unsuccessful, do not grow at the same rate, or if stores under those models close. That disclosed risk is linked to the formats’ 74.19% share of Fiscal 2026 revenue and their 419 locations at March 31, 2026.

Closures show that operating continuity is separate from store openings. SS Retail closed 18 COFO stores and eight FOFO stores in Fiscal 2026, compared with eight COFO and two FOFO closures in Fiscal 2025, and five COFO closures in Fiscal 2024. Across COCO, COFO and FOFO, the company reported 27 closures in Fiscal 2026, 12 in Fiscal 2025 and five in Fiscal 2024.

SS Retail also identifies suitable locations, commercially acceptable rental costs, regulatory approvals, competitive dynamics, customer preferences and economic conditions as factors in opening and operating stores. The company reported 267 net new stores from March 31, 2024 to March 31, 2026, but states that it cannot assure that new-store openings will increase sales or profitability. Continued franchise-model revenue therefore depends on operating existing locations and on future sites opening and trading successfully.

Conclusion

SS Retail’s Fiscal 2026 revenue mix places franchisee-operated formats at the centre of its store business. COFO and FOFO generated Rs 1,744.26 crore, or 74.19% of revenue from operations, while representing 419 of 503 stores. COFO supplied most franchise-model revenue, whereas FOFO’s store count and revenue share increased following the Fiscal 2026 Olineo acquisition.

The disclosed operating measure to watch is the ability to retain and expand the franchise-led network while controlling closures. SS Retail recorded 26 combined COFO and FOFO closures in Fiscal 2026 and identifies the future success, growth and continued operation of those formats as conditions that may affect business growth and results.