CANTABIL - Cantabil Retail

📊 NSE: CANTABIL 🏢 Textiles - Products 📅 Last Updated: 12/13/2025 20:41

💰 Financial Performance

Revenue Growth by Segment

Men's wear remains the flagship segment. Overall revenue grew 17.1% in FY25. Q2 FY26 revenue reached INR 176 Cr, a 16% increase from INR 151 Cr in Q2 FY25. Q1 FY26 saw 24.3% YoY growth.

Geographic Revenue Split

Primary concentration in North and West India. Expansion is focused on Tier-II and Tier-III cities to leverage lower competition and reach younger demographics.

Profitability Margins

Net margin was 10.4% in FY25 (up from 10.1% in FY24). H1 FY26 PAT margin stood at 6.4%. Management targets an annualized PAT margin of 11-12% for FY26.

EBITDA Margin

H1 FY26 EBITDA margin was 27.2% (vs 26.5% in H1 FY25). Q2 FY26 EBITDA margin was 23.9% (vs 22.8% in Q2 FY25). Operating margin in Q1 FY26 was 30.8%.

Capital Expenditure

Not disclosed as a total INR Cr figure, but the company added 86 stores in FY24, 66 stores in FY25, and 29 stores in Q2 FY26, funded primarily through internal cash generation.

Credit Rating & Borrowing

Long-term rating upgraded to [ICRA]A (Stable) from [ICRA]A- (Stable) in August 2024. Short-term rating reaffirmed at [ICRA]A2+. Interest coverage was 5.2x in FY24 and 5.9x in FY23.

⚙️ Operational Drivers

Raw Materials

Fabrics and apparel components for men's, women's, and kids' wear. Specific material types like cotton or polyester are not detailed by percentage.

Capacity Expansion

Current manufacturing capacity is ~1.5 million pieces per year at the Bahadurgarh, Haryana facility. Expansion is primarily through retail footprint (533 stores as of March 2024, with 29 added in Q2 FY26).

Raw Material Costs

Not disclosed as a specific % of revenue, but operating profit margins (28.5% in FY25) suggest stable procurement costs.

Manufacturing Efficiency

Fully integrated facility in Bahadurgarh produces 1.5 million pieces annually.

Logistics & Distribution

Not disclosed as a specific % of revenue.

📈 Strategic Growth

Expected Growth Rate

17-24%

Growth Strategy

Execution of 'Vision 2027' focusing on scale and efficiency. Strategy includes aggressive store expansion in Tier-II and Tier-III cities (29 stores added in Q2 FY26), driving same-store sales growth (SSSG), and leveraging fixed costs to improve PAT margins from 10.5% to 11-12%.

Products & Services

Branded apparel (shirts, trousers, suits, etc.) and accessories for men, women, and kids.

Brand Portfolio

Cantabil

New Products/Services

Expansion into women's and kids' wear segments to complement the flagship men's wear.

Market Expansion

Focus on Tier-II and Tier-III cities across India to benefit from lower competition.

Strategic Alliances

131 stores operated under franchise models as of March 2024.

🌍 External Factors

Industry Trends

The value-for-money apparel segment is growing, particularly in non-metro cities. The industry is shifting toward organized retail with a focus on brand awareness and store experience.

Competitive Landscape

Operates in the economy to mid-range price segments; faces competition from other branded value retailers.

Competitive Moat

Durable advantage through an integrated manufacturing facility (1.5M pieces/year) and a strong 'Cantabil' brand identity in the value-for-money segment. Sustainability is driven by a focus on Tier-II/III cities where competition is lower.

Macro Economic Sensitivity

Highly sensitive to discretionary spending patterns and inflation.

Consumer Behavior

Rising consumer confidence noted in H1 FY26; early signs of demand recovery driven by festive season shifts.

⚖️ Regulatory & Governance

Industry Regulations

Compliant with SEBI Listing Regulations 17 to 27 and Regulation 46.

Legal Contingencies

Penalties previously imposed by stock exchanges for compliance delays were waived after clarifications; no other pending major court cases or values disclosed.