The specialty retail sector in India is witnessing dynamic growth, fueled by evolving consumer preferences and technological advancements. In 2024, India’s retail market reached $952 billion, with organized retail projected to grow from 20 percent to 30 percent by 2025. Specialty categories like beauty, wellness, and sporting goods are expanding, driven by AI-powered personalization and omnichannel strategies.
Price Movement
With a market capitalization of Rs 2,190.02 crore, the shares of Baazar Style Retail Ltd were trading at Rs 293.50 per share, decreasing around 7 percent as compared to the previous closing price of Rs 315.30 apiece.
Matter Explanation
Baazar Style Retail slashed its net debt by 94 percent to Rs 100 crore as of March 31, 2025, from Rs 1,700 crore a year ago, aiming to be debt-free in 2–3 years. After a strong FY25 with 38 percent revenue growth (beating its 30 percent guidance), it now targets 25–30 percent revenue growth in FY26 with 8–10 percent like-to-like growth.
Financial Analysis
In Q3 FY25, the company posted a 24 percent YoY revenue rise to Rs 412 crore, EBITDA grew 10 percent to Rs 83 crore, and PAT was Rs 30.4 crore. For 9M FY25, revenue rose 33 percent YoY to Rs 998.3 crore with PAT at Rs 21.1 crore.
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Strategic Initiatives
The company opened 43 new stores in the first 9 months of FY25, including 18 in Q3, bringing the total to 199 as of December 31, 2024. It now expects to exceed its original FY25 guidance, revising the target to 45–50 new stores.
Challenges and Management Outlook
In Q3 FY25, profitability was impacted by festival timing and higher corporate overheads, with new stores yet to reach full potential. Despite short-term margin pressures, management remains confident in the company’s growth trajectory.
Company Profile
Baazar Style Retail operates as a value fashion retailer and is categorised into two main segments: apparel and general merchandise. The apparel segment provides clothing for men, women, children, and infants, and the general merchandise section includes non-apparel items and home furnishing products.
Written by Abhishek Singh
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