SS Retail's 507 franchise-linked stores drive network scale

SS Retail Limited ran 507 franchise-linked COFO and FOFO stores out of 574 on 30 September 2026, and COFO supplied about 71% of FY26 revenue. The 393-store COFO format therefore combined the largest outlet base with the largest revenue share, while FOFO accounted for 114 stores and about 8% of FY26 revenue.

How is SS Retail's store network divided by format?

SS Retail had 393 company-operated franchise-operated (COFO) stores, 114 franchise-owned franchise-operated (FOFO) stores and 67 company-owned company-operated (COCO) stores on 30 September 2026. COFO and FOFO together represented 507 outlets, or about 88% of the 574-store network, while COCO represented the remaining 67 stores.

The network covered 228 cities in Maharashtra, Goa, Karnataka, Madhya Pradesh and Gujarat, with about 70% of stores in Tier II, Tier III and smaller towns. SS Retail reported 2.8 lakh square feet of retail area on 30 September 2026, compared with 2.41 lakh square feet in FY26.

COCO is the smallest format by store count, but SS Retail funds its lease, stock, operating expenditure and capital expenditure. In COFO, SS Retail bears the lease, stock and operating expenditure, while capital expenditure is shared with the partner. The model consequently places most outlets in formats involving franchise partners while retaining operating responsibilities in COFO.

Why does COFO contribute most of SS Retail's revenue?

COFO contributed about 71% of SS Retail's FY26 revenue, compared with about 21% from COCO and 8% from FOFO. Its 393 stores were the largest format base disclosed at 30 September 2026, and COFO partners operate against monthly revenue and profitability targets with target-linked commissions.

The revenue mix shifted between FY24 and FY26. COFO declined to 71% from 77%, while FOFO rose to 8% from 3% and COCO increased to 21% from 19%. COFO remained the principal revenue source despite its six-percentage-point reduction in mix over the two-year period.

SS Retail reported a 32% compound annual growth rate, or CAGR, for COFO revenue from FY24 to FY26. FOFO revenue grew at a 110% CAGR over the same period, explaining its higher mix share from a smaller base; however, its FY26 contribution of about 8% remained far below COFO's 71%.

Who pays for inventory and store operations at SS Retail?

SS Retail retains ownership of inventory across COCO, COFO and FOFO formats. Its stated supply chain runs from original equipment manufacturers, or OEMs, and distributors through centralised procurement and a hub-and-spoke network to stores and customers, meaning stock remains under SS Retail's ownership even where a partner bears local costs.

In FOFO, the partner funds the lease and operating expenditure, while capital expenditure is shared and SS Retail earns a fixed margin on the cost of inventory sold. In COFO, SS Retail bears lease, stock and operating expenditure, with commissions paid to partners against monthly revenue and profitability targets. The 114 FOFO stores include stores acquired through the FY26 majority-shareholding acquisition of Olineo, according to the format disclosure.

The unit economics presentation applies to COCO and COFO stores: average capital expenditure was Rs 15 lakh per store, average working capital was Rs 1.2 crore per store and average store-level breakeven was six months. SS Retail also reported a 33-month payback period including working capital, rather than presenting these measures for FOFO.

How quickly has SS Retail expanded its franchise formats?

SS Retail added 304 franchise stores between FY24 and FY26, according to its franchise-led model presentation. Total stores increased from 236 in FY24 to 503 in FY26, before reaching 574 in H1 FY27, which is the first half of FY27; the FY26 and H1 FY27 counts include 34 stores acquired through Olineo.

Revenue rose from Rs 1,207 crore in FY24 to Rs 2,351 crore in FY26, while retail area grew from 1.18 lakh square feet to 2.41 lakh square feet. As of H1 FY27, revenue was Rs 1,730 crore, retail area was 2.80 lakh square feet and the network covered 228 cities, up from 109 cities in FY24. The presentation identifies the Rs 1,730 crore figure as H1 FY27, not a full-year result.

FY26 revenue per store was Rs 5.7 crore and revenue per square foot exceeded Rs 1.46 lakh. Average store size was 540 square feet in H1 FY27, average selling price including goods and services tax was Rs 34,050, and the average store-closure rate was 3.65%.

What is SS Retail planning after reaching 574 stores?

SS Retail's management has stated an ambition to operate 750 stores by 2028 through cluster-led, partner-driven expansion. The plan identifies a pan-India footprint, store maturity, direct sourcing and inventory efficiencies as its operating levers, alongside higher-margin pre-owned phones, accessories and allied categories.

Maharashtra remains the main proof point for the cluster model, with 513 stores as of 30 September 2026 and 75% of those outlets outside Mumbai and Pune. SS Retail describes an approach of roughly one store per 2.5 lakh people, using 500 to 700 square foot stores and lower rental costs in Tier II and beyond markets.

Mobile Exchange Wala is one planned adjacency. The pre-owned-phone shop-in-shop format operated in 108 of 574 stores on 30 September 2026, after revenue increased from Rs 5 crore in FY23 to Rs 169 crore in FY26. Management targets about 30% store penetration by FY29, compared with current penetration of less than 20%.

Conclusion

SS Retail's store network is predominantly franchise-linked by outlet count, but COFO remains the central revenue format. The company had 507 COFO and FOFO outlets out of 574 on 30 September 2026, while COFO generated about 71% of FY26 revenue and FOFO generated about 8%. Inventory ownership across all three formats gives SS Retail a common supply-chain structure despite different partner cost responsibilities.

The next disclosed milestones are management's 750-store ambition by 2028 and its target to lift Mobile Exchange Wala penetration to about 30% by FY29. The changing COFO, FOFO and COCO revenue mix, along with the pace of franchise-store additions after the 304 added between FY24 and FY26, will show how the expansion plan develops.