1. Opening Hook
Just when you thought India’s retail scene couldn’t surprise you—Cantabil casually drops a 20% H1 revenue jump like it’s a Diwali discount nobody asked for. Even the CFO sounded like he’d rehearsed the numbers in front of a mirror… twice. And yes, they’re now opening bigger stores because apparently sizedoesmatter in apparel retail.
As theBhagavad Gitareminds us, “Action is superior to inaction”—and Cantabil is acting like it wants to bully its way to ₹1,000 crore.
Stick around, the masala gets richer ahead.
2. At a Glance
- Revenue up 16% (Q2)– Management insists it wasn’t festive-season cheating, just “momentum.”
- EBITDA up 22%– CFO’s favourite child continues outperforming.
- EBITDA Margin 23.9%– Bigger stores = bigger mood.
- PAT up 3%– Profit arrived, looked around, stayed modest.
- PAT Margin shrinks to 3.8%– GST joy for customers, sadness for spreadsheets.
- 29 new stores added– Expansion mode: ON.
- Net debt: Zero– Borrowings? Cantabil says, “Not in this economy.”
3. Management’s Key Commentary
Quote:“We are observing early signs of demand recovery… driven by GST rationalization.”(Translation: Govt cut the tax, customers finally stopped haggling.)
Quote:“Bigger stores give better EBITDA, better display, better experience.”(Translation: Big shop, big bill. Simple.)
Quote:“We are opening stores of 1,625 sq ft now.”(Translation: 1,300 sq ft was so last season 😏.)
Quote:“H1 revenue grew 20%… EBITDA grew 23%.”(Translation: Please notice how EBITDA grows faster. We certainly do.)
Quote:“PAT margins will move to 11–12% this year.”(Translation: Manifestation is real. So are fixed costs.)
Quote:“We will cross ₹1,000 crore in FY27.”(Translation: Vision 2027 isn’t just a shiny PowerPoint slide.)
Quote:“GST benefit fully passed to customer.”(Translation: Footfalls up, margins crying
softly.)
4. Numbers Decoded
| Metric | Value Q2 FY26 | YoY Change | One-Line Analysis |
|---|---|---|---|
| Revenue | ₹176 Cr | +16% | Growth steady despite festive shift. |
| EBITDA | ₹42.1 Cr | +22% | Big stores doing big lifting. |
| EBITDA Margin | 23.9% | +110 bps | Efficiency finding its groove. |
| PAT | ₹6.8 Cr | +3% | Profit took a power nap. |
| PAT Margin | 3.8% | -50 bps | GST pass-through pinched. |
| H1 Revenue | ₹335 Cr | +20% | Momentum real, not marketing. |
| Stores Added (Q2) | 29 | — | Hyper expansion mode activated. |
| Total Stores | 630+ | — | Sprinting toward 675 target. |
One-liners: EBITDA flexed, PAT froze, GST meddled, IndAS 116 haunted margins, topline remained the good kid.
5. Analyst Questions
1. Larger store strategy?Mgmt: Yes, big stores = better margins & display.(Translation: More space = more shirts = more money.)
2. PAT improvement plan?Mgmt: High SSSG + fixed costs = leverage.(Translation: If customers keep coming, PAT will stop sulking.)
3. Why PAT margins not rising with revenue?Mgmt: IndAS 116 hit ₹2.1 Cr this quarter + new stores not mature yet.(Translation: Accounting + new store teething = temporary pain.)
4. GST impact?Mgmt: Passing full benefit; footfalls rising.(Translation: We gave
