At a Glance
Baazar Style Retail’s Q1 FY26 numbers look like a rollercoaster built by an intern—revenue up 9% QoQ, margins at 15%, and profit ₹2.07 crore (down 81% YoY). With a P/E of 117 and promoters owning just 45.6%, the stock is priced like a luxury brand while selling value fashion.
Introduction
The company that calls itself Style Baazar is basically a “D-Mart for East India”, except instead of groceries, it’s fast fashion and home goods for budget-conscious shoppers. FY25 saw aggressive store expansions, sales soared 42%, but profit growth took a coffee break (-36% TTM). Q1 FY26 continues this love-hate affair: revenue rose to ₹378 crore, but net profit plunged. Investors wonder if this is a growth stock or a value trap wearing Zara.
Business Model (WTF Do They Even Do?)
Baazar Style sells affordable fashion and home essentials in West Bengal and Odisha. The playbook: open stores rapidly, sell cheap, earn thin margins, and hope volume saves the day. With 230 stores, they’re scaling—but costs (rent, logistics, staff) keep eating profits. Unlike Trent or Vedant Fashions, they have zero pricing power—discount is their only brand.
Financials Overview
- Q1 FY26 Sales: ₹378 cr (↑37% YoY)
- EBITDA: ₹58.2 cr (OPM 15.4%)
- PAT: ₹2.07 cr (↓81% YoY)
- EPS: ₹0.28
Annualized EPS = ₹1.1 → at CMP ₹269, P/E ≈ 244× (crazy). Even on TTM EPS ₹2.3, P/E ≈ 117×. Book Value ₹54, P/B ≈ 5×. Margins improved QoQ, but profits crumbled under interest/depreciation.
Valuation
- P/E-based: EPS ₹2.3 × 30 (sector fair) → ₹69.
- EV/EBITDA: FY25 EBITDA ₹190 cr × 10 = ₹1,900 cr → ₹254/share.
- DCF: Using growth 15% and discount 10%, fair range ₹200–₹230.
🎯 Valuation Range: ₹70–₹230. CMP ₹269 is premium, betting on long-term growth.
What’s Cooking – News, Triggers, Drama
- Store count: 230 after Samastipur store closure.
- AVP (Supply Chain) appointment hints at backend optimization.
- Altered AoA and governance clean-up at AGM—corporate housekeeping.
- Crisil ratings stable, but low interest coverage remains a concern.
Balance Sheet
| Metric | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|
| Assets | ₹867 cr | ₹1,166 cr | ₹1,754 cr |
| Borrowings | ₹490 cr | ₹657 cr | ₹996 cr |
| Equity | ₹194 cr | ₹215 cr | ₹404 cr |
| D/E | 2.5× | 3.1× | 2.4× |
💬 Auditor remark: Leverage high, expansion aggressive—playing with fire but wearing stylish boots.
Cash Flow – Sab Number Game Hai
| Year | FY23 | FY24 | FY25 |
|---|---|---|---|
| Operating CF | ₹33 cr | ₹112 cr | ₹53 cr |
| Investing CF | –₹43 cr | –₹85 cr | –₹103 cr |
| Financing CF | –₹8 cr | –₹18 cr | ₹54 cr |
Expansion burns cash, but operations still positive.
Ratios – Sexy or Stressy?
| Ratio | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROE | 7% | 10% | 6.6% |
| ROCE | 8% | 10% | 8.7% |
| PAT Margin | 1% | 2% | 1.1% |
| P/E | 150× | 120× | 117× |
| D/E | 2.5× | 3.1× | 2.4× |
Comment: Sexy growth story, stressy balance sheet.
P&L Breakdown – Show Me the Money
| Year | Revenue | EBITDA | PAT |
|---|---|---|---|
| FY23 | ₹788 cr | ₹103 cr | ₹5 cr |
| FY24 | ₹973 cr | ₹143 cr | ₹22 cr |
| FY25 | ₹1,344 cr | ₹190 cr | ₹15 cr |
Profit trend looks like a zig-zag designer graph.
Peer Comparison
| Company | CMP | P/E | Sales (₹ Cr) | ROE |
|---|---|---|---|---|
| Trent | ₹5,180 | 128× | 17,134 | 30% |
| Vedant Fashions | ₹742 | 46× | 1,428 | 23% |
| V2 Retail | ₹1,765 | 76× | 2,102 | 23% |
| Baazar Style | ₹269 | 117× | 1,446 | 7% |
Roast: Priced like Trent, performs like V-Mart on a bad day.
Miscellaneous – Shareholding, Promoters
- Promoter Holding: 45.6% (not majority control)
- FII: 2.4% (tiny)
- DII: 11.3%
- Public: 40.7%
- No dividends. Pure growth play.
EduInvesting Verdict™
Baazar Style is a small-cap retailer with Trent’s valuation but not Trent’s brand power. Aggressive store openings fuel sales, but thin margins, high interest, and leverage keep profits low. With P/E above 100, it’s priced for perfection—any slip, and it falls harder than a clearance rack mannequin.
Strengths:
- High growth in revenue
- Expanding store network
- Improving operating margins
Weaknesses:
- Tiny profits, low ROE
- High debt, interest coverage issues
- Promoter stake <50%
Opportunities:
- East India retail penetration
- Margin improvement with scale
- Potential private equity/strategic investment
Threats:
- Rising costs, consumer slowdown
- Interest rate hikes impacting debt
- Competitive pressure from D-Mart, V-Mart, online retail
Final Take:
At ₹269, the stock is a growth fashion—great on the runway, risky in the portfolio. Investors betting on multi-bagger potential must also brace for wild swings. For now, it’s a buy-the-dip only if you like adrenaline.
Written by EduInvesting Team | August 2025
SEO Tags: Baazar Style Retail, Q1 FY26, fashion retail India, small-cap stocks, value retail analysis
