Go Fashion reports Rs 643cr revenue, 11% growth in 9M FY25

Go Fashion (India) Limited, the company behind the popular Go Colors brand, has released its unaudited financial results for the quarter and nine months ended December 31, 2024. Despite a challenging demand environment, the women’s bottom-wear leader reported a robust 11% year-over-year growth in revenue from operations, totaling ₹643.4 crore for the nine-month period.

The results highlight the brand’s continued evolution into a comprehensive bottom-wear destination for women. From revenue figures to strategic retail expansions, the company appears well-poised to solidify its leadership in the Indian apparel sector.

How Did Go Fashion Perform Financially in Q3 and 9M FY25?

For Q3 FY25, Go Fashion posted a total revenue of ₹214.7 crore, reflecting a 6% increase compared to ₹202.1 crore in the same quarter last year. Gross profit surged by 11% to ₹137.7 crore, with an improved gross profit margin of 64.1%.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at ₹69.8 crore in Q3, maintaining a robust margin of 32.5%. Profit after tax (PAT) rose 4% to ₹24.3 crore in the same period.

Over the nine months, revenue from operations grew by 11%, reaching ₹643.4 crore. Gross profit for the period stood at ₹405.1 crore, marking a 14% year-over-year increase. EBITDA grew by 9% to ₹205.5 crore, while PAT reached ₹73.6 crore, a 6% rise.

What Drives Go Fashion’s Revenue Growth and Margins?

The brand’s Average Selling Price (ASP) reached ₹769 for 9M FY25, driven by a diversified product mix and a stronger focus on premium offerings. CEO Gautam Saraogi attributed this growth to the company’s ability to adapt to evolving consumer preferences.

“Over the years, we have seen a significant transformation in our mix from our earlier reliance on leggings and churidars,” Saraogi commented. “This shift underscores the strong market acceptance of our value-added products and reflects our evolution into a comprehensive bottom-wear brand.”

The company has also prioritized operational efficiency, as seen in its inventory management. Inventory days stood at 99 as of December 31, 2024, with projections to stabilize between 90 and 95 days for the full fiscal year. Additionally, Go Fashion maintained a working capital cycle of 130 days, ensuring liquidity and financial stability.

How Is Go Fashion Expanding Its Retail Footprint?

Retail expansion remains a key pillar of Go Fashion’s growth strategy. During the nine months, the company added 61 net new Exclusive Brand Outlets (EBOs), taking its total store count to 775 as of December 2024. For the full year, the company aims to add 80–90 new stores, with plans to ramp up annual additions to 120–150 stores in subsequent years.

This aggressive expansion strategy underlines Go Fashion’s commitment to increasing its market presence. A robust retail network coupled with growing Same Store Sales Growth (SSSG) and Same Cluster Sales Growth (SCSG) metrics underscores the brand’s ability to cater to an expanding consumer base.

What Challenges Did Go Fashion Face and How Did It Overcome Them?

While Same Store Sales Growth (SSSG) remained flat at 0.4% for the nine-month period, the company achieved a 7% increase in Same Cluster Sales Growth (SCSG). This performance highlights Go Fashion’s resilience in navigating soft demand conditions.

The company’s focus on premiumization and full-price sales helped maintain profitability despite external challenges. Notably, full-price sales accounted for 95.1% of revenue during the nine months, a significant indicator of strong brand loyalty and pricing power.

What Lies Ahead for Go Fashion?

Looking forward, Go Fashion aims to achieve greater operational efficiencies and expand its market share. The company has outlined plans to maintain a strong focus on design innovation and category diversification. With an extensive product portfolio ranging from leggings and palazzos to denims and athleisure, the brand is well-positioned to cater to diverse consumer needs.

Go Fashion’s emphasis on financial discipline is equally noteworthy. Operating cash flow (OCF) for 9M FY25 stood at ₹150.1 crore (post-IND-AS 116), with the company on track to convert more than 50% of its EBITDA into cash flow.

“Our strong focus on inventory and working capital efficiency will help us achieve our cash flow targets for FY25,” added Saraogi.

What Makes Go Fashion a Market Leader in Women’s Bottom-Wear?

As India‘s first dedicated women’s bottom-wear brand, Go Colors holds approximately 8% of the branded women’s bottom-wear market. The company’s ability to innovate and adapt has set it apart, offering a wide array of products across ethnic wear, western wear, fusion wear, and athleisure.

With competitive pricing and a diversified portfolio catering to all income segments, the brand has successfully built a loyal customer base. As it continues to innovate and expand, Go Fashion remains a dominant force in the women’s apparel sector.