1. At a Glance – Blink and Your Money’s Gone
Praxis Home Retail Ltd is trading at ₹7.19, down 57% in one year, 42% in three months, and spiritually down since inception. Market cap stands at ₹134 Cr, while enterprise value is ₹257 Cr, which politely means: debt is doing most of the talking.
Latest Q3 FY26 revenue is ₹26.2 Cr, while PAT is –₹15.9 Cr. That’s not a typo — the company loses ₹60+ Cr annually while running 33 stores across 24 cities. ROCE is –9.63%, operating margins are –27%, and interest coverage is –2.26, meaning interest is eating the company faster than customers buy sofas.
Promoter holding has collapsed from 55% to 7%. Public holding is 91%, which means retail investors are now running HomeTown emotionally and financially.
This is not a turnaround story yet. This is a survival documentary.
2. Introduction – When HomeTown Became No-Man’s-Land
Praxis Home Retail was supposed to be the organised furniture retail play — a clean, aspirational, IKEA-lite Indian story. Instead, it became a case study in how retail burns cash faster than Diwali fireworks.
Founded in 2011 and closely linked to the Biyani ecosystem, Praxis carried forward the DNA of big stores, big leases, and even bigger optimism. Unfortunately, demand cycles, high rentals, low margins, and online competition showed zero mercy.
The company has been loss-making for most of its life, its
entire net worth has been eroded, and current liabilities routinely exceed current assets. This is not a one-year COVID accident — this is chronic retail asthma.
Ask yourself: if home retail is booming in India, why is this one gasping?
3. Business Model – WTF Do They Even Do?
Praxis operates HomeTown, a large-format home retail chain offering:
- Furniture (living, bedroom, office)
- Modular kitchens
- Modular wardrobes
- Home décor & furnishings
- Interior design services
Sounds sexy, right?
Now comes the reality check.
This business model has:
- High inventory days (200+ days)
- Heavy working capital
- Lease-driven fixed costs
- Low repeat purchase frequency
You don’t buy a sofa every month. But you pay rent every month. That mismatch has murdered margins.
Online competition (Pepperfry, Amazon, Urban Ladder) eats price. Offline stores eat cash. Praxis gets squeezed from both ends — like a samosa in a hydraulic press.
4. Financials Overview – Numbers That Cry for Help
Quarterly Comparison (Figures in ₹ Crores)
| Metric | Latest Qtr (Dec’25) | YoY Qtr (Dec’24) | Prev Qtr (Sep’25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 26.2 | 34.0 | 21.0 | –22.9% | +24.8% |
| EBITDA | –9 | +1 | –6 | Imploded | Slightly Worse |
| PAT | –15.9 | –8.0 | –16.0 | –98% | Flat Pain |
| EPS (₹) | –0.86 | –0.45 | –0.89 | –91% | Marginal |
