At a Glance
Cantabil Retail strutted through Q1 FY26 with sales of ₹159 Cr and a PAT of ₹15 Cr (EPS ₹1.75), marking a 28.6% YoY profit growth. Operating margins stayed stylish at 31%, while ROE at 20.8% shows they’re not just stitching clothes but also weaving returns. However, heavy inventories and a cash conversion cycle longer than Bollywood movies may keep investors pacing.
Introduction
In the land where H&M and Zara dominate the malls, Cantabil survives by being the desi alternative with over 450 EBOs. With a focus on economy-to-mid range apparel, it rides the aspirational wave of India’s Tier-2 & Tier-3 cities. But don’t be fooled by the trendy store fronts – rising debt, inventory bloat, and compliance drama lurk behind the curtains. So, should you buy this stock or just buy their shirts?
Business Model (WTF Do They Even Do?)
- Designing & Manufacturing: In-house production keeps costs tight.
- Retail Network: 450+ exclusive brand outlets across India.
- Product Range: Men’s, women’s, kidswear, and accessories in the mass-premium segment.
- Branding: Mid-range fashion with aggressive Tier-2 expansion.
Roast: Think of it as “Zara for those who check price tags twice.”
Financials Overview
Q1 FY26 Snapshot
- Revenue: ₹159 Cr (↓27% QoQ, ↑24% YoY)
- Operating Profit: ₹49 Cr (OPM 31%)
- PAT: ₹15 Cr (EPS ₹1.75)
FY25 (TTM)
- Revenue: ₹752 Cr
- PAT: ₹78 Cr
- ROE: 20.8%
- ROCE: 18.2%
Commentary: Growth remains solid, margins intact, but QoQ slowdown hints at seasonality.
Valuation
1. P/E Method
- EPS ₹9.33 × Fair P/E 25 → ₹233.
2. EV/EBITDA
