MUMBAI–Go Fashion (India) Limited, the company behind women’s apparel brand Go Colors, reported a 59% decline in net profit for the quarter ended September 2026, as weaker revenue and shrinking operating margins weighed on its financial performance.
The company posted a net profit of Rs 9 crore for the second quarter of fiscal 2027, compared with Rs 22 crore in the corresponding period last year, according to a stock exchange filing.
Revenue from operations fell 3% year over year to Rs 217.6 crore from Rs 224 crore in the July-September quarter.
Operating earnings also declined, with earnings before interest, taxes, depreciation and amortization (EBITDA) dropping 21% to Rs 53 crore from Rs 66.8 crore a year earlier.
Go Fashion’s EBITDA margin narrowed to 24.2% from 29.8%, reflecting reduced profitability amid softer quarterly sales.
Gautam Saraogi, CEO of Go Fashion (India), attributed part of the weaker performance to changes in the timing of major Indian festivals, which shifted some seasonal merchandise shipments into the following quarter.
“Q2 & H1 FY27 saw us build further on the strategic priorities we outlined at the start of the year, even as the quarter was shaped by a later festive calendar. With key festivals shifting into Q3, the bulk dispatches to our LFS partners that typically take place ahead of the festive season moved into October,” Saraogi stated.
The shift affected shipments to large-format retail partners that would typically have occurred during the September quarter.
Saraogi said the company had seen encouraging early signs from the festive shopping season but would need more time to evaluate its overall impact.
“The festive season has started on a good note, and we will be better placed to assess its full impact once the period concludes,” he noted.
Meanwhile, Go Fashion continued restructuring its retail network by prioritizing larger stores and closing smaller outlets.
During the quarter, the company opened nine stores while shutting down 23 smaller locations as part of its strategy to improve store productivity and expand its product offerings.
Despite the net reduction in store count, the company’s total retail space increased to 448,000 square feet as of September 30, 2026, compared with 434,000 square feet at the end of March.
The expansion in overall retail space reflects the company’s focus on larger-format locations, which management said have been outperforming smaller stores.
According to Go Fashion, larger outlets allow the company to display a wider selection of merchandise while improving the shopping experience for customers.
The company is pursuing the strategy as it seeks to strengthen its position in India’s women’s apparel market and improve the performance of its physical retail network.
Go Fashion’s latest quarterly results highlight the challenges facing the retailer as it adjusts its store portfolio and navigates changes in seasonal consumer demand.
The company’s performance in the December quarter will provide a clearer indication of whether festive-season sales and its larger-store strategy can help reverse the decline in revenue and profitability. (Source: IANS)
