Modest turnaround signals, but flat revenue and 26% PAT decline weaken conviction

Delivered 62.9% GM; management notes fabric inflation 7-10% will pressure margins in coming quarters

Achieved 0.6% EBO SSSG, 1.2% cluster growth; but management explicitly cautious: may reflect weak Q1 base, not a trend

Stated growth of 2% YoY; reflects recovery after operational disruptions in FY26

130+ stores >700 sq ft, reporting 2.5-3% SSSG; small stores dragging overall metric

₹1,000 sales per sq ft per month, double-digit EBITDA positive in majority; no revenue scale data disclosed

Q1 positive SSSG at 0.6% vs negative in prior quarters; first positive in several quarters but management cautious on sustainability.

Fabric inflation 7-10% flagged; no pricing power. Prior guidance for 62.5-63.5% margins now at risk in Q2+.

LFS grew 2% YoY to ₹50 Cr vs prior disruptions (Q3-Q4 FY26 operational issues), now normalized.

Expected growth in FY27 (per prior call) but Q1 delivered 0% YoY. Turnaround stalled.

8-10% square feet growth on annual 12-month basis. Q1 saw 7,000 sq ft reduction due to closure timing, but FY27 full-year should show net growth.

Multiple reasons: weak Q1 base, some business shifted from closed stores, and better Q1 demand. Too early to call trend. Larger stores (700+) doing 2.5-3%, smaller stores underperforming. Management: very cautious, not excited by 0.6%.

Fabric costs up 7-10% due to Middle East situation. Not taking price hikes yet. Difficult to quantify exact GM impact due to inventory mix, but expect margin pressure in coming quarters.

15 stores live, targeting 25-30 by FY27. ₹1,000 sales/sq ft/month. 12-13 out of 15 stores profitable with decent inventory turns. Unit economics similar to bottom-wear stores. Payback 15-20 months.

We are in Reliance Trends, not AZORTE. Supply chain disruptions normalized in Q1. Can't quantify store conversions to AZORTE. Difficult to visualize risk.

Currently 100 days. By year-end, targeting 90-100 days. This includes daily wear inventory; core bottom-wear days actually lower.

Footfalls up 1-1.5% YoY at EBO level. No drop in footfalls. Very similar to prior year numbers.

Need to verify prior call data. Will clarify through IR. Cannot recall exact context of that statement. Not able to recollect current data.

Lingerie is on the evaluation list as part of everyday wear concept. Will update when ready.

Dependent on larger store opening opportunities. Q1 saw -7,000 sq ft, but full year expected to grow. Actual revenue growth not quantified.

Q1 delivered 62.9% GM, in range. But 7-10% fabric inflation will pressure in Q2+. Management not taking price hikes. Recovery timing uncertain.

Brand ambassador and marketing push expected to remain at this level; not a one-off.

Cash position ₹202 Cr sufficient; organic funding expected to support store expansion.

Fabric costs up 7-10% due to geopolitical factors (Middle East). No pricing power; management not taking price hikes. GM at risk in Q2-Q4 as new inventory flows at higher COGS.

0.6% SSSG claimed as breakthrough, but management and analysts both acknowledge fragility. Could be due to weak Q1 LY base, internal cannibalization from store closures, or seasonal demand. Too early to call a trend.

Reliance converting Reliance Trends stores to AZORTE (own private label), displacing external brands including Go Colors. No visibility into conversion pace. LFS grew 2% but at risk of future headwinds.

Q1 FY27 revenue flat YoY at ₹222.8 Cr despite transformation initiatives (larger stores, product refresh, brand ambassador, daily wear). Turnaround narrative promises growth but Q1 delivers zero. Market may lose patience.

PAT down 25.9% YoY to ₹16.5 Cr while revenue flat. NPM slipped to 7.1%. Exceptional ₹6.5 Cr charge from store closures, but underlying EBITDA also 2% lower. Profitability under pressure from transformation costs and operational headwinds.