Thomas Scott (India) Limited Q2 FY26 Concall Decoded: Revenue up 40%, EBITDA almost doubled, and suddenly everyone believes apparel + AI is the future.

1. Opening Hook

Thomas Scott just hosted its first-ever earnings call, and like all first calls, it arrived armed with buzzwords, big numbers, and AI references every five minutes. Somewhere between “Thread AI” and “Catalog AI,” management made it clear—this is no longer your uncle’s garment exporter.

Q2 FY26 delivered record revenues, margin fireworks, and a surprisingly calm explanation for why GST cuts improved profitability. Offline stores are being “tested,” guidance is being “avoided,” and AI is apparently doing everything except stitching shirts—yet.

Management sounds confident, growth-hungry, and slightly allergic to giving forward numbers. But beneath the jargon sits a genuine pivot story: manufacturing DNA meets marketplace math.

Read on—because the real masala lies in margins, inventory math, and why price-insensitive customers saved the quarter.

2. At a Glance

Revenue up 40% YoY (₹57 cr): Apparel growth so strong even GST confusion couldn’t slow it.
EBITDA up 93% YoY (₹8.5 cr): Operating leverage finally clocked in for work.
EBITDA margin at 14.9%: Festive demand + smart pricing = accidental margin expansion.
PAT up 68% YoY (₹5 cr): Profits showed up dressed better than expected.
H1 Revenue ₹111 cr (+63% YoY): Growth sprinting, not jogging.

3. Management’s Key Commentary

“We have evolved from a traditional apparel manufacturer into a technology-enabled fashion retailer.”
(Translation: Manufacturing alone was boring, so we added dashboards 😏)

“Our build-for-demand model allows us to

launch new styles very quickly.”
(We stalk consumer search data before competitors wake up)

“This quarter saw deferred purchases due to GST cuts, followed by strong recovery.”
(Customers waited, then panic-shopped later)

“Our models identified that customers were price insensitive.”
(Rare moment when shoppers didn’t care about discounts 😮)

“Thread AI helps us identify what to launch faster.”
(Excel sheets with steroids)

“Catalog AI improved kidswear conversion by ~80 basis points.”
(AI kids are apparently easier to convince than adults)

“We are focused on high double-digit growth while maintaining double-digit EBITDA.”
(Margins matter—but growth matters more)

4. Numbers Decoded

Metric	Q2 FY26	YoY Change	What It Really Means
Revenue	₹57 cr	+40%	Online engines firing well
EBITDA	₹8.5 cr	+93%	Fixed costs finally behaving
EBITDA Margin	14.9%	+400 bps	Festive pricing magic
PAT	₹5 cr	+68%	Profits scaling with volume
Inventory	₹77.1 cr	↑	Stocking up for H2 fireworks

One-liner: Growth drove margins this quarter—not the other way around.

5. Analyst Questions

Offline store performance?
Pilot phase, double-digit footfalls, but

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