Transcipt_Q1FY27

AI summary - Q1 FY27 revenue grew 23% y-y; 9% same-store sales growth (SSG) marks 11th consecutive positive quarter - Unlimited format in South India grew 33% revenue and 40% EBITDA; sales per sq ft up 18% y-y - Gross margin declined 80 bps to 34.5% due to mix change and inventory provisioning - Operating expenses rose 15%, below revenue growth, delivering 150 bps operating leverage - Pre-IndAS EBITDA grew 36% y-y to INR 83 Cr; reported EBITDA up 27% to INR 161 Cr with 14.8% margin - PAT grew 41% y-y to INR 47 Cr; positive cash flow of INR 76 Cr; CAPEX INR 38 Cr for new stores and refurbishments - Expansion: 15 new stores added, total 591 stores; FY27 expansion guidance 90+ stores with disciplined approach - RM inflation ~10% impacting costs; cautious price hikes planned within 3%-5% ASP increase - Minimum wage hikes partially factored; focus on efficiency to manage employee cost as % of sales - Q2 FY27 expected to see timing impact due to shifted Durga Puja; recovery expected in Q3 with festive growth - Management targets mid-to-high single digit SSG for FY27; 3%-4% SSG needed to offset inflationary pressures - Focus on improving rupee gross margin and customer proposition; supply chain volatility remains key risk