Baazar Style Retail Ltd (NSE: STYLEBAAZA) Q3 2026 Earnings Call dated Feb. 13, 2026
Corporate Participants:
Shreyans Surana — Managing Director
Nitin Singhania — Chief Financial Officer
Analysts:
Gaurav Jogani — Analyst
Chirag Maroo — Analyst
Rehan Saiyyed — Analyst
Himanshu Dugar — Analyst
Rutu Chavan — Analyst
Subhanu Bangal — Analyst
Pranav Shrimal — Analyst
Anand Mundra — Analyst
Presentation:
operator
Ladies and gentlemen. Good day and welcome to Bazaar Style Retail Ltd. Q3FY26 earnings conference call hosted by Philip Capital Private Client Group. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star and then zero on your Touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Ruthu Chawan from Philip Capital. Thank you. And over to you sir.
Rutu Chavan — Analyst
Good evening everyone. On behalf of Philip Capital Private Client Group I welcome all of you to the Q3.9M FY26 earning conference call of Bazaar Style Retail Limited today. From the management we have Mr. Srian Sudana, Managing Director and Mr. Nitin Singh, Chief Head Officer. The management will be sharing key operating and financial highlights for the quarter and nine months ended 31 December 2020 followed by a question and answer session. Please note this call may contain some of the forward looking statements which are completely based upon companies beliefs, opinions and expectations. As of today these statements are not a guarantee of company’s future performance and involve unforeseen risks and uncertainties.
The company also undertakes no obligation to update any forward looking statements to reflect developments that occur after a statement is made. I now hand over the conference to Mr. Srian Surana. Over to you sir.
Shreyans Surana — Managing Director
Good evening everyone and thank you for joining us today. Our investor presentation has been uploaded on the Stock Exchange and on our website and I hope you had an opportunity to review it. Let me begin with a very important strategic development for our company Bazaar Style Retail Limited. We have secured a strategic investment of 331.53 crore from Qubit Limited through a preferential issue of up to 1.01 crore equity warrants at an issue price of rupees 328.25 per warrant convertible into equity shares within 18 months. This partnership is closely aligned with our long term growth plans.
The proceed from this transaction will be utilized towards phased store expansion and business growth initiatives including network expansion, supply chain integration and improve customer reach. A portion of the proceeds will also be used for repayment and prepayment of borrowings which will result in reduction in debt and a stronger balance sheet for the company. Equally important, this partnership brings strong operational and product synergies. By leveraging Cupid’s trusted and scaled manufacturing capabilities, Bazaar Style will expand its offering in the personal care and wellness category thereby enhancing our product mix in increasing customer frequency, improving store productivity and diversifying revenue beyond fashion.
We operate 252 stores as of December 25th and we have a clear roadmap to scale to 500 plus stores over the next three years through a disciplined cluster based approach. Earlier our plan was to open 40 to 50 stores annually. With the capital now in place, we have the opportunity to accelerate this growth to 60 to 80 stores per year giving us a greater headroom and flexibility for growth. We believe this strategic association meaningfully strengthens our value proposition and supports sustainable long term growth. If there are additional questions on this, we can take them on a separate call.
For today’s discussion we would prefer to focus specifically on the Q3 and nine month FY26 performance given the one hour time constraint. Now let me take you through the key highlights of our 9 month FY26 business performance which clearly reflects momentum firing on all fronts. Driven by our custom based expansion strategy, we have consistently scaled our store network from 199 stores in 9 month FY25 to 252 stores in 9 month FY26 delivering a strong 27% growth in store count. This expansion has been complemented by a steady increase in our retail footprint with a total rental area rising to 2.35 million square feet.
A robust 31% year on year growth. Alongside expansion we have strengthened our focus on brand building. The share of private label in overall revenue has increased significantly from 44% in nine months FY25 to 54% in nine months FY26 translating into a revenue of 740 crores, an impressive 68% year on year growth highlighting the growth strength and acceptance of our brand portfolio further reinforcing our growth strategy. Our focus states delivered a robust 61% year on year increase in revenue to 238 crore in nine month FY26. As a result, their contribution to the revenue improved from 15% in 9 month FY25 to 17% in 9 month FY26 demonstrating stronger regional penetration and customer traction.
Building on this robust performance, accelerated store expansion and strategic initiatives. We revised our full year revenue guidance to 35% year on year. Our pre index EBITDA margin is guided at 7 to 8% and pre INDE S PET margin is guided at 3 to 4% on India’s basis. EBITDA is guided at 14 to 15% and and PAT margin is expected between 2 to 3% reflecting continued operational discipline and improving cost absorption on strategic approach of cluster based store expansion influenced SSG performance. As a result, incremental stores were added within established cluster. However, the rapid ramp up of new stores significantly enhanced overall cluster productivity enabling higher throughput and improved operating leverage.
During nine month FY26 the company opened 25 new stores within the existing cluster resulting in a decline of 8% in SSG of mature store in this cluster. Heavy rainfall in Bengal and unrest in part of Assam and Tripura during peak festival impacted SSG in 9 month FY26 states other than West Bengal, Assam and Tripura continue to deliver healthy growth with SSG remaining resilient at 8% in 9 month FY26. Hence the SSG guidance for FY26 is being revised to 4 to 5%. Let me now briefly touch upon the key pillars that will drive our future growth.
Our cluster led expansion remaining the foundation of our strategy. We are pursuing a focused rollout that enables superior site selection, deeper understanding of catchments, faster store ramp up and quicker realization of operating leverage and economies of scale. In parallel, we are accelerating digital transformation. We are investing 7 to 10 crores in FY26 to build an integrated and intelligent technology backbone with SAP ERP expected to go live within six months. Along with the deployment of infowms, golded refinishment and DOMO analytics, we aim to enhance supply chain visibility, optimize inventory turn and enable scalable data driven operations.
We are also strengthening our merchandising capabilities. We have reinforced our leadership with experienced retail talent in a supportive consumption environment. We are seeing strong traction in Tier 2 and Tier 3 market driven by rising disposable incomes and a shift from online to organized retail. At the same time, Tier one cities are witnessing strong participation from value conscious youth. Our proposition style for the Entire Day at 1000 Positions Bazaar style strongly to address India’s large and underpenetrated value retail opportunity by blending aspiration with affordability. Aligned with this, we are steadily increasing private level penetration. Private level now contributes 54% of the revenue and we aim to scale this to around 65% over the next two years.
While these products are currently priced competitively to drive brand recognition and customer adoption, we see meaningful headroom for strategic price optimization which should support margin expansion over time. I am pleased to report that we have delivered another quarter of strong performance sustaining our positive growth trajectory the first nine months of FY26 represents a milestone period for the company as we achieved our highest ever nine month revenue and operating metrics across key parameters alongside healthy profit growth coming to our financial performance. In nine month FY26 revenue from operation grew 38% year on year to 1376 crore supported by strong growth across both cost and focus markets.
Gross Profit stood at 475 crores up 40% year on year with gross margin as 34.5 up 65bps. EBITDA rose 45% year on year to 217 crore with EBITDA margin at 15.8% up 76 bips reflecting improved operational efficiency and disciplined cost management on operating metrics. In nine month FY26 our core market grew 34% year on year while focus market grew 61% underscoring the broad based strength of our business. Total area retail area now stands at 2.35 million square feet up 31% year on year. Importantly our inventory days has also reduced from 111 days to 102 days on operational performance.
SSG stood at 5% in calendar year 25 which captures all major festival and provides a more holistic view. Store count reached 252, a growth of 27% year on year in nine months FY26 retail area stands at 2.35 billion square feet, a growth of 31% year on year. In nine months FY26 sale per square feet stood at 743 for nine month FY26 and for the calendar year 25 it stood at 731 up by 4%. The monthly average transactional value stood at 969 in nine month FY26 number of Bells stood at 15.1 million up 42% year on year.
In nine month FY26 quantities sold increased 40% to 49.49 million units in nine month FY26 invented is on revenue reduced from 111 days in nine months FY25 to 102 days. As of nine month FY26 focus market revenue was 238 crore up 61% year on year in nine month FY26. In conclusion, Bazaar Style is well positioned on a strong growth factory supported by our differentiated value proposition, disciplined expansion approach, accelerating digital transformation and improving operating leverage. As we scale we are steadily building a future ready, resilient and profitable retail platform aligned with India’s expanding consumption story.
The recent fundraise has further strengthened our financial foundation providing us with a greater flexibility to execute our growth strategy with confidence and agility. Thank you for continued trust and support. With that, I conclude my opening remark and request the moderator to open the floor for questions.
Questions and Answers:
operator
Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press STAR and then one on their touchstone phone. If you wish to remove yourself from the question queue, you may press STAR and then two participants are requested to use handsets while asking a question. Also request participants to limit their questions to each participant and can rejoin the queue for any follow up questions. Our first question comes from the line of Gaurav Jogani from JM Financial. Please go ahead.
Gaurav Jogani
Hi, thank you for taking my question. My first question sweyant to you is with regards to the store expansion. Now you know you have mentioned that opening the stores in the existing areas has kind of cannibalized your SSSG leading to, you know, kind of flattish SSG for the nine months that we reported. So in this context, how do you look at the store expansion? Where should we consider the incremental stores to come into the future?
Shreyans Surana
So in that scenario you rightly said that the existing cluster there was a cannibalization of sales by 8% in the existing cluster. But while that I think the strategy on the EBITDA has been good for us. If you see the first nine months performance even without eid, the store EBITDA overall store EBITDA for the company has increased by 30bps. That is that the new stores are performing equivalent to a mature store category because of opening of same stores in same cities because we know the catchment and there’s a still a huge room of getting the revenue.
So you can say that yeah, while I have cannibalized my sale only in that area, but because of the understanding of all that catchment, we have been able to achieve a higher EBITDA in the same geography where you open the newer stores.
Gaurav Jogani
My question was largely on account of the store incremental store openings that you would do going ahead first to avoid this cannibalization or the strategy would be the same of how would we divide the new store opening between the existing cluster and the newer clusters. If I can ask the other way. Around,
Shreyans Surana
I think it will be blend of both. So while we are opening in focus states also where the still the cannibalization has not happened that much and as we are seeing a good I think there’s a huge room to grow in existing cluster also. So it will be a mixed blend of Both of them. But while we are open 60 to 80 stores, I think the larger part will be open in the focus states resulting in I think sales coming from the non cannibalized area that way. And as I think till the time we are getting good margins on the EBITDA side, I think if any store comes in the existing cluster, we will be happy to open a store in that cluster if we find the EBITDA is good.
Because as I said this year the new store’s performance has been exceptionally well and is equivalent to a mature store EBITDA performance. So as a company we are seeing at our bottom line also. And if EBITDA is good, so we’ll be opening stores across, but we are largely in the focus states.
Gaurav Jogani
Sure. And my second question, you know is with regards to the competitive intensity that you are seeing in the value retail space, we are seeing many different players, you know, kind of expanding or accelerating the store expansion. So how do you look at the overall competitive scenario? Does this board any risk for future growth for us? If you can highlight something on this. Front,
Shreyans Surana
I think competition intensity is growing. I think it’s good for the market only. And as I have told in previous call also there’s a huge opportunity in this market because of the under penetration in Tier 2, Tier 3 and unorganized penetration is very, very high compared to the organized penetration. Still on an average every smaller city has got only two to three organized players. So I think there’s a huge headroom to grow in the cities. I think while saying that because the intensity is increasing, I think we have to be good on our back end infra.
That’s why we are continuously investing in our infrastructure, our IT structure, our manpower thing and we are building the cost also on the backend ho cost so that we are able to compete with all the big players coming in this industry.
Gaurav Jogani
Okay, sure. And just last question from my end is in terms of the bookkeeping one actually is on the the rental speech, if you can help us out, you know, we, we are also adding stores which are of higher square feet. I think this quarter, if you look at it, two of the stores that we have added that seems to be at a higher square feet in terms of size leading to also higher rental. So if you can give some sense on how the future store sizes would be and how should we make it the rentals here as well.
Shreyans Surana
So see in terms of store size, I think generally it ranges around 9,000 square feet, only 8,000 square feet. Some stores may come as a flagship store so in this quarter there were two stores open which was relatively larger in the size in terms of rental I think Nitinji will give you the numbers.
Nitin Singhania
So rental per square foot for this quarter was 58. Right. And for the last quarter it was 57. So there will be not much increase in the rental per square footage square feet it will be hovering around 58 to 60 rupees per square foot.
Gaurav Jogani
Thank you. That’s all for me.
operator
Thank you. Participants, please restrict your questions to each per participant and you may rejoin the queue for any follow up questions. Our next question comes from the line of Chirag from Keynote Capitals. Please go ahead.
Chirag Maroo
Yeah, thank you for the opportunity. My first question is related to the insurance money that you are expected to receive. Any update or clarity on that?
Shreyans Surana
Yeah, as we have mentioned earlier also and I think in last also I think we have told that the claim of around 3.48 crore against the total capital asset loss of 4.2 4.24 crore has been received on the asset side. On the inventory side I think approximately 43 crores claim has been filed with the insurance company and the matter is currently under the review and we are still on the decision stage. We have submitted the documents also and the assessment is also going on and we are regularly in contact with the insurer to speed up the process.
I think we are optimistic that I cannot give you a timeline item but I am expecting it the I think the conclusion of the entire claim thing to get settled enough few months and I think then once we get received the update we will update to the exchange and I think everyone you will get the understanding on the insurance part. Right now it’s on the still on the discussion stage.
Chirag Maroo
The second question is related to the strategic investment. So before the strategic investment came into picture our expected store edition per year was around 4550. And our thought process related to that was that having more than 4550 stores addition can have a negative consequences also that there can be store closure not selecting the right place to open the store. And now there is this after the money coming into picture or the strategic investment coming into picture our assessment looks in the right direction that we are now opening 7080 stores. But just wanted your thoughts on the sale that has that.
Shreyans Surana
No. So there’s a little bit gap in the understanding structure for that. If you see that time when we said 40 to 50 stores with the capital that we are having and with the internal accrual that we were having. So we said with the current in L we will be able to open 40 to 50 stores and if we stretch beyond that then it will be a negative on the balance sheet because if you see as of 9 months also we are having a debt of around 267 crores out of which 152 is for bank and 115 for the bill discounting with a trade payable of around 249 crore.
So idea was that if you want to open 40 to 50 stores we will open only through the internal accrual with the limitation of the our balance sheet. It was never that we cannot open or there will be a closer store. Yeah, with now having a fund in our bank I think we can go for the faster expansion of 60 to 80 stores. At the same time making meaningful, meaningful investments in technology and infrastructure to support the scale and operational efficiency. And I think second thing, the most important thing is that if you have a balance in your bank and if you are growing for three to 80 stores it will help you to have a better profitability on the I think interest side also because higher, if you see the object or the primary object of the fund is also to reduce the debt which will in return help you with the interest expense which will enhance your strengthens your balance sheet.
Okay, second thing, I think the 60 to 80 stores the growth that we were chasing, I have said previous in previous call also 25% was the number that we were looking with the internal accruals 20 to 25%. But now with this fund coming in, we will be able to sustainably grow at 30% while not taking too much hit on our balance sheet in terms of any expenditures or a wrong selection of stores or anything like that because we are opening in the same cluster only. And if you see our closer rate I have told in previous call also has been only 34 stores since inception which is around 1.75 to 2% every year.
So when we are opening the store in the same cluster, I don’t think there’s a huge risk about store opening. It was always about the working capital management and the fund flow.
Chirag Maroo
Fair enough, fair enough. Just last one question from my side. So roughly about, if I’m not talking about 50 to 60 crores is expected to be spent on tech as that capex been concluded or we still require any more funds for that second 45 to 50 stores would have required US 1 crore per store plus 1 crore of inventory per store. So about 2 crores of capex amount. So will it be fair to assume that around 100 crores of debt is expected to get reduced from the books and rest would be used for the capex purpose.
So 150 crores of debt to be reduced and about 100 crores to be used for capex purpose.
Shreyans Surana
Yeah, around 180 crores would be for the reduction of Cap Bord wines. And so the only thing that I would like to say is that on the capex front there has been a lot of capex but not 50 to 60 crores but yeah, around 7 to 10 crores on the tax side and around 20, 25 crores on the warehouse side. Warehouse infra. The only thing that we have changed in our strategy right now is that we are opening lot of collection centers. We have started creating hub and spoke model. So right now initially we were only having one warehouse in West Bengal.
But now we have opening smaller smaller warehouses like in Assam. We have opened in month of December. We have just opened correction center in Bihar. So going forward I think the idea is in next one, one and a half year we will have two big regional distribution center. One in Bengal and one in maybe in the same central India. And there will be five to seven smaller collection centers which will enhance the supply chain in terms of the delivery. So right now after the collection center is opened it has been only one month. The SAAM delivery time which used to take around 10 days to restore has come down to around 5 to 6 days.
So the idea is to improve the supply chain efficiency while opening a few warehouse warehouses in different different states.
Chirag Maroo
The cash flow that we are receiving in the year would be used for the supply chain and warehouses. And the warrant money that would be coming into picture would first be used for for store expansion. And the rest of the money would be used to reduce the debt down the line.
Shreyans Surana
Yeah. 182 will be used for the reduction of Bangorian and the balance would be fairly used in the store expansion and the infrastructure development both on the tech side and on the warehouse.
Chirag Maroo
And priority would be expansion over there, right?
Shreyans Surana
Yes.
Chirag Maroo
Perfect. That’s it. Thank you.
operator
Thank you. Requesting all the participants to limit to only two questions each per participant. Our next question comes from the line of Rehan Sayed from Prenatal Asset managers. Please go ahead. Sorry to interrupt. Rehan sir, your voice is sounding muffled. If you are using any other mode, maybe requesting.
Rehan Saiyyed
Okay, just. Just. Just give me a minute.
operator
Slightly better. Sir, please go ahead.
Rehan Saiyyed
Sure. I just want some understanding on your present in your presentation that you have mentioned the shift from attractive pricing to fair pricing or private label. So once brand recall Established Given that your leading brand square has accrued 3158 million revenue for 9 month FY26. So are you already initiating this tight transition for this brand?
Shreyans Surana
Sorry, but I think your voice is not clear to me. If I have correctly understand your question. It’s on the square a private label.
Rehan Saiyyed
Yeah, yeah, yeah.
Shreyans Surana
Can you just come again with a question on the private labels?
Rehan Saiyyed
Sure, sure. I repeat my question again like you have mentioned in your presentation regarding the shift from attractive pricing to fair pricing or private labels. So while brand recall is established. So given that your Leading brand square up received 3158 million in revenue for 9 months FY26, are you already initiating this size transition for this brand?
Shreyans Surana
See in terms of private label has started doing very well for us and I think that we can see numbers also. So the growth territory from last year from the almost 45% we have grown to 54% and square up is becoming 300 crore plus revenue brand. I think the acceptance of label has started coming in. I think in the common public structure I can say wherever shows are present. So people have been able to understand even the gross margins are doing fairly well. On the private level side though we have not increased a lot on the MRP side but we have kept the MRP same.
But yeah, we are getting good traction around the private labels. Is that was your question?
Rehan Saiyyed
Yeah.
Shreyans Surana
Thank you.
Rehan Saiyyed
I have one more question.
operator
You can go ahead but your audio is not coming clearly. If you are using any other mode, may we request to use handset to ask a question?
Rehan Saiyyed
Oh yeah. Now it’s. Yeah.
operator
So it is slightly better.
Rehan Saiyyed
Yeah. So sir, like my second and last question is around your on logistics side that the contribution from focus market outside the core instance shared green 68y in 9 months FY26 now making about 17% of total revenue as you scale further into states like Uttar Pradesh and Andhra Pradesh. So do you expect the logistical supply chain cost per store to increase comparatively? Bengal market?
Shreyans Surana
I think it will not increase, it will reduce only because as compared to obviously the states which are nearer to the core warehouse. Right now our warehouse is Bengal. So the logistic cost will be lower for them compared to the states like UP and Bihar. But as I have said that the study that we are applying for the future is that we will have two big regional disclosures centers going forward. One from Bengal and one from Central India. And there will be smaller, smaller collection centers in different parts like Guwahati, Bihar. Then we will be in Lucknow also.
So I think that will help US to reduce the cost of logistics and increase the speed of supply chain. We will be taking lower time to transfer goods from main warehouse to the stores, which will result in, I think, better revenue per square feet for the stores. So I think on the costing front, as we grow more stores in the focus states, it will help us in economies of scale only, so the costing will lower.
operator
Thank you. Before we take the next question, a reminder to all the participants. If you wish to register for a question, please press star and then one. Our next question comes from the line of Himanshu Dugar from Stylus Holdings. Please go ahead.
Himanshu Dugar
Yeah, hi. Am I audible?
Shreyans Surana
Yeah, you’re audible.
Himanshu Dugar
Yeah. Thanks Shyam, for the opportunity. So, two questions. The first question for me was on. The general merchandise and also how General Mechanics forms a part of private cables. If you just share with out of total private label sales, how much is General Mechanics and within general merchandise, how are you seeing the sales moving?
Shreyans Surana
Total 13% of revenue comes from general merchandise. On the private level side, we only have one private level that is home focused, which is under GM category for the private label side. And I think one more is Ms. 19, which also has some private labels in general category. I think on the general business side the category is good. The category is growing and I think it is really complementing the fashion part. But a lot of time people are coming from the GM also and while coming for the general merchandise, they are buying the apparels also.
So I think it is acting as a football driver for us in terms of private label. We are not doing too much on the general manager side because mostly on lot of things like personal care or maybe the plastic wear. So there are lots of big brands which are already available, so we are just buying from them. So we are not very much strategically looking as a private label to create something on the private level. To a very large extent on those general category, the private level focus largely remains on the gun side.
Himanshu Dugar
The following is the percentage. What is the percentage of general merchandise which is your private label.
Shreyans Surana
In terms of number the private table sales coming from GM would be Right now I don’t have the number exactly available with me, but total private level sales contribution Is of around 54% for the company. I think I can take it separately on the phone and I can tell you that number. The CFO can tell you the number exit number for the GM private label.
Himanshu Dugar
Yeah, the second question was for that overall declining ASP for your products. Because when you look at volume growth as well as and I’m looking 9m numbers. I’m not even looking at QT. I understand the seasonality. So 9m to 9m there seems to be a material decline almost a 3% dip in ASP which should ideally be increasing right. Because of inflation etc. So if you could explain on that.
Shreyans Surana
So sir, there are two reasons for the decline in asp. One, when you’re seeing this nine months, the last nine months. So last year nine months had EID in that. So festival always helps to create a higher ASP. This year the Eid shifted to 31 March. As a result the first nine months had only had did have EID as a festival in the month of April. So that is one of the reason. Second thing, this year largely because on the focus phase we have also focused a lot on the anti price point product. As a result the assortment WIX had a higher anti price point product resulting into a lower competitive aspect.
But if you see the unit per piece it is almost on the similar side as the last year. So the UPD remains similar to last year while the ASP reduce on this two account.
Himanshu Dugar
Got it. Thank you.
operator
Thank you participants. You may press star and then one to ask a question. Our next question comes from the line of Anand Mundra from Soar Wealth. Please go ahead.
Anand Mundra
Good evening sir. Just wanted to check any changes in. Growth outlook as we have done large fundraise for FY27.
Shreyans Surana
I think in terms of growth outlook maybe As I said 25% was the number that we were looking every year. Now we will go for 30% as a growth outlook. And in terms of store expansion, as I’ve already mentioned that from 50 to 60 or 40 to 50 stores we are targeting 60 to 80 stores. So the growth momentum will increase. And in coming years, in next three years the target is to reach 500 stores. So with this infusion I think we are set to open around 500 we to reach 500 stores in next coming two years to three years.
Anand Mundra
Thank you sir. Thanks a lot.
operator
Thank you. Your next question comes from the line of Ruth Chewan. Please go ahead.
Rutu Chavan
Hi sir. Thank you for the opportunity. Sir. I wanted to know how many more stores are we expected to add in this last quarter of FY26.
Shreyans Surana
So it is around 11 stores.
Rutu Chavan
Okay, 11 more stores and. Okay. And I wanted to know since our partnership with Cupid for the FMCG products, what sort of gross profit margins do we expect to see on those FMCG products and by when will that be live?
Shreyans Surana
I think the personal care category as a whole Gives you a gross budget of around 25 to 28% on different products at different RGMs. But I am talking as a whole that we see in terms of the, the revenue that we are generating from the Cupid. I think maybe you will see the numbers started coming from the first Q1. So there will be, there are some process which we are facing in Q1 itself. It will in the, maybe at the end of March or maybe in the first week of April, we will be able to put some articles of Cupid in different stores.
In terms of product mix, I think largely the product will remain similar to the numbers that we are having right now, which is 87 and 13% in terms of sales coming. And as and when gradually the personal care, wellness and FMCG categories scales up, then only mother I will be able to tell you the specific percentage increase. But intent is very simple. We want to complement fashion, not replace it with the high frequency categories. So the idea is that the Cupid Art portfolio will be there across the stores, around 250 stores, which will help us in increasing the revenue on the personal care, wellness and LNG category which will be acting as a booster to increase footfall also and the sales also in Style Bazaar stores.
While doing that, we’ll ensure that the mix mix of April remains healthy, which is around 87%.
Rutu Chavan
Okay, thank you sir. And in terms of target from these products, is there any target that we set internally or for the revenue to reach, let’s say in the next couple of years? FY27, FY28.
Shreyans Surana
So I think it’s very premature to specifically tell the revenue coming from these products. I think we will try to put it in the stores and then we will see the performance. And then only maybe in the coming few quarters I will be able to tell you the numbers. Right now I don’t have a number in my mind.
Rutu Chavan
Fair enough. Fair enough. Thank you, sir. If I have any question, I’ll come back. I’ll join the queue.
Shreyans Surana
Thank you.
operator
Thank you. The next follow up question comes from the line of Himanshu Dugar from Stylus Holdings. Please go ahead.
Himanshu Dugar
Yeah, hi. Thanks for the opportunity again. So first question here is on the competition. So in our home market like we see that, you know, a lot of the other competitive players really coming up and there are crowding up in most of the high street area that we could look at. This is just kind of point out because you are mentioning on that you are continuing to expand in areas where you already present and you are seeing improving Margins. But then there seems to be this disconnect wherein there’s too much of crowding in the same high streets.
Could just point out like are these things specifically only in West Bengal you are seeing these kind of issues or even in the other markets you are seeing a similar kind of situation happening.
Shreyans Surana
See if you see it’s not the compression, it’s just coming this year. If you see the last three financial years from I think last three financial years every one in the value retail has grown and they have grown at a good rate of around 20 to 30%. So but while growing we have been able to successfully maintain the EBITDA of 7 to 8 on the pre index and 14 to 15% on the index side. So it clearly shows that you have been able to achieve revenue also. And while achieving the revenue you have been able to sustain the product profitability also.
Now coming to the current. I think the competition is we are seeing everywhere and in the entire eastern part. It’s just that when this year the strategic approach that we have taken is that when we saw there is an opportunity in the existing cluster and if we are not opening the store, someone else is opening and if we know about the catchment. So why to not open the same stores? So we started it with an experiment, but when we started opening stores we saw there’s a huge profitability coming from the newer stores. So just for example, generally the newer store was giving 5 to 6% as a pre index EBITDA on the year one in which it was opening this year has been exceptional and they have given a ebitda of around 13%, 13 to 14% which is matching the matures to EBITDA.
So we saw if 7 to 8% of the revenue has been cannibalized also from our existing store, but 92% of the revenue has come from the market, the remaining market and it is giving us a profitable growth. Then why not to open stores in the same cities where there’s a still a potential and I think see in terms of store expansion everywhere there’s a conversion. So I cannot say Bengal only. So maybe the Bengal have a lot of regional players here. But again UP and Bihar also have a lot of big players from central India.
Himanshu Dugar
Got it. The second question is around your current net debt and balance sheet position. Why I’m coming to this is because one, you mentioned in the slide that there is almost 10 days improvement in inventory as well as 5 days improvement in the trade table. So broadly we should be seeing the 15 days kind of an improvement. Overall capital level. And you are also, I mean I think the net debt as of September was in control 150160 odd crore. And the Capex plan that you mentioned kind of seems reasonable to fund it. So how do you kind of, you know, elaborate on the fundraise that you’ve done currently? And just one more you know point we wanted to touch upon is because this has happened in dilution to the IPO price.
IPO is around 290 rupees and the current dilution happening only at 330 rupees. So if you could just kind of explain to us on why current fundraisers make sense and on your current balance sheet position as well.
Shreyans Surana
So coming to question on the balance sheet I think the bank borrowing is at 152 crore on the bank, directly from the bank and the bill acceptance is around 115crore and for the 9 first 9 months and I think on the September also as I said 40 to 50 stores with the same balance sheet we will be able to grow. But if you want to accelerate to 60 to 80 stores we require the fund. Now coming to the pricing of the fund, the option that we chose was warrants And I think the idea was that when we planned to do that that time, if I correctly remember the prices was in the range of 250 to 300 rupees.
And I think with the calculation or whatever the formula that have for the warrant with that we decided to go with 331crores which ensures that if you want to have a future growth of 60 to 80 stores we can do that. And as I said that most of the part is going to still going to the debt side to reduce the debt site which will help us in improving the I will say financial position of the company by having a higher profitability because of the lower interest cost reduction. So that was the idea and the rationale behind taking funds.
Himanshu Dugar
Sorry to interrupt sir Shank, but you mentioned 150 crores of debt in hand and the current capex also even if they adding 60 stores in a year the overall Capex is going to be 200 odd crores and 120150 odd crores again which could be payable by operating cash flows. So by raising 330 crores how does it serve the growth purpose?
Shreyans Surana
But I am opening 80 stores and while doing that I am also investing in lot of warehouse infrastructure and technology. And I think while doing that without debt in our books it helps you clearly on the financial side Even if store expansion for any reason goes wrong, there is always a limit leverage on the balance sheet that you have the cash in the balance sheet. And if there’s any interest cost, if there’s a lower interest cost which can set offset the any wrong selection if you have any. But in our model the best part is that because we are in the cluster based approach, the closure of store historically has been very low.
So that is the reason that we chose to take money and take this risk. Because we are opening the existing cluster only and the parse data suggest that the risk of selecting a wrong location in our scenario has been lower compared to other retailers. As a result, we chose to go ahead with this fund plan.
Himanshu Dugar
So you are saying that currently. So you added like some 200 stores to 250 stores in the last one year. And from here you want to grow at 80 stores. And for the 80 stores your investment is still going to be 4 crores, right? 2 crores for 6 assets and 2 crores inventory. Or that is also going to increase.
Shreyans Surana
What’S similar 1 crore asset and 1 crore inventory around 2 crores.
Himanshu Dugar
Yeah. So in that case can’t you just add on like 150 stores in the next year itself? Is that something that you’re thinking about?
Shreyans Surana
So I think as I said 60 to 80 stores every year. In next three years 500 stores will be the target.
Himanshu Dugar
So the 500 stores are the target FY28 or FY29.
Shreyans Surana
80 stores every year. Right now we are at 252 stores. And if 260 stores will be the 31st of March and if I had 80 stores every year. So by FY29 it will be 500 stores.
Himanshu Dugar
Okay, thank you.
operator
Thank you. Participants, if you wish to register for a question please press star and then one. Our next question comes from the line of Shibanu from three Head Capital. Please go ahead.
Subhanu Bangal
Yeah, so my first question is as you mentioned your current GM mix around 13%. What was. How is the margin from GM segment?
Shreyans Surana
It is around 32 to 33%. Yes.
Subhanu Bangal
Yeah, because I asking this question because stupid personal care. Hello.
Shreyans Surana
Yeah, please go ahead.
Subhanu Bangal
Yeah, products fall in GM segment. Hello.
Shreyans Surana
Yeah, you’re audible. Please go ahead.
Subhanu Bangal
Yeah, if personal care product mix increasing our GM segment mix will increase going further.
Shreyans Surana
No, it doesn’t mean that. So as I said There is a 13% sales coming from GM and I think there is a lot of within the category changes that we are going to do because again the target is to maintain the fashion quotient in the store. So while maintaining that the cupid will help us to attract more footfall. Because I think the personal care category in India is growing and I think it will be with their brand footage portfolio. It will only enhance the revenue for Salvazaar. Maybe the category of personal care may grow higher and there.
There may be some categories which will be replaced by the personal care category. It is not that the fashion will be replaced by the personal but what.
Subhanu Bangal
Will be a target going forward.
Shreyans Surana
So I think. I think it’s too. As I said it’s premature to say numbers on that but Ideally the product miss right now stands as 87% of revenue coming coming from apples and 13% from GM. And as we evolve I think then only I will be able to give but largely 87% focus on the Aprils will be higher. So 87% will of the revenue will be coming from Aprils in going forward future also 13%. I think now there may be a mix changing in another 13% structure only.
Subhanu Bangal
Okay, okay, okay. My second. Got it. My second question is as you mentioned out of this 330 warranty issue 180 will be used for reduced bank volume and rest will be for expansion. Then what Then free cash flow. Out of this three tactical warranty suit. You said 180 card will be used for bank borrowing reducement. Reduce and rest will be used for store expansion. Yeah.
Shreyans Surana
And. And warehouse infra tech investment together. Yeah. On the capex.
Subhanu Bangal
Okay. Okay. Okay then.
operator
Sorry to interrupt. Shabanu sir. May we request to return to the queue for any follow up question?
Subhanu Bangal
This my second question. Yeah, this was my second question.
Shreyans Surana
Okay. Yeah. Please please go ahead. Please go ahead. Please. Please go ahead. I think. Yeah please please.
Subhanu Bangal
Okay.
Shreyans Surana
18 months as we grow higher. So I think FCS will increase. And as of now. As of now we have decogated debt. Debt. The Debt is around 100 and 267 crores which is out of which 152 is a bank borrowing. 115 is a bill discounting. So going forward we will use it for the working capital deduction.
Subhanu Bangal
Okay, thank you. Thank you.
Shreyans Surana
Thank you.
operator
Thank you. Your next question comes from the line of Pranav Shrimal from Pink wealth advisory. Please go ahead.
Pranav Shrimal
Hello.
operator
Yes sir, please go ahead.
Pranav Shrimal
Hi sir, I just had a couple of small questions. What is the interest payment we can expect going forward?
Shreyans Surana
Interest payment for the next years onwards.
Nitin Singhania
So. So this year it will all depends on when the fund comes in. So most probably this year it is around 1% of of the total revenue. Next year it might be point 7% and gradually it goes decreasing.
Pranav Shrimal
Okay, understood. Any rough idea when we can estimate the funds to come in?
Shreyans Surana
See, I think today I think it takes generally a month’s time from the. We are just have just written documents to the exchange. I think we are just awaiting their approval. Generally it takes around 20, 25 days. We are expecting the funds to flow by end of third to fourth week of March. But again it totally depends on the when we get the approval from exchanges.
Pranav Shrimal
Secondly, with Cupid what sort of a partnership or strategic expansion we are expecting. Will we use their facilities? Will they use our facilities? Will there be some know how both the companies will be sharing with each other?
Shreyans Surana
I think in terms of Cupid. I think as as this partition because as I said also that the synergy is more more beyond financial investment. Also it’s more on the operational side. I think we will be giving them that 252 stores the Marketplace in which they can put their product as a display. And I think with the know how of their in personal care category and as I said this category is also one of the growing categories in India and it purely complements the fashion side also. So I think we both will be helping helping each other that way.
So I will not think we will be using their manufacturing plant but we will be using their expertise in the manufacturing plant. And I think they can use the retail experience expertise that we have got. And together we are creating this synergy for each other
Pranav Shrimal
this exclusive deal. Or are they allowed to venture to other states also because from Matala center we are mainly focused on the east side and now expanding towards central India. So in the future this plan to expand.
Shreyans Surana
So no it’s not. It’s not an exclusive deal that we are talking about. It is not like that that they will only be selling in our stores. It’s a national brand. They can sell in any stores. Yeah, but yeah we are giving them this 252 stores as a marketplace which will always help them to promote their product in our stores. So there is nothing called this fixed deal that they will have to only sell in our stores. They can sell in anywhere. And I think that is the best way also because higher is the presence of a brand in different stores.
More is the visibility and more is the sales. Customers are aware about that brand.
Pranav Shrimal
Understood. And just lastly one question. So in terms of the revenue selling, is there anything that we have decided will they pay us any certain cost for self space?
Shreyans Surana
I think as of now we have not decided on any numbers yet. I think it’s a gradual process. I think as I said we have 250 stores which have a lot of space which is available for gm. I think once we are through with the strategy that how many, how much space we need to give it to the personal care. Right now we already have some space which will be shared, which will be shared with them also in terms of their current promotion. But in terms of number, I don’t have a number yet. I think it would at least take a quarter or maybe three to four months in order to understand how the product behaves.
Then only I will be able to tell you a number.
Pranav Shrimal
Understood. Thank you so much. Lastly, one confirmation. So we said going forward we can expect around 50 to 60 rupees per square feet entry cost. Is that correct?
Shreyans Surana
Yeah, 57 is the right now the cost. I think 57 to 60 is the largely the cost which will be on. The render side
Pranav Shrimal
next year for the. For the next year. Right.
Pranav Shrimal
Thank you so much.
operator
Thank you. Your next follow up question comes from the line of Anand Mundra from Saurwath. Please go ahead.
Anand Mundra
Hello. Thanks for the opportunity again sir. Are we planning to convert our existing. Source in double gondola and if yes, how long it will take sir?
Shreyans Surana
Yeah, yeah. We have already started doing that and I think that strategy has really is working well for us and I think currently we have already I think did around 50 stores have been in the double eyed candle. We have changed that and going forward we expect near about in by next one year we are expecting almost 80% of the stores having double height gondola. So to add on to Sanjay point all the new stores what we are opening where we have the space. So we are opening with a double height gondola and the light to like stores which are not in double height gondola.
We are converting to double height like gondola and 20 to 30 stores of that has been converted. And one more thing just for everyone who is issuing this call. I think the doublelight gondola allows you to have display more quantity of articles freely to the consumer which helps in increasing the impulsive buying from the customer end and that we are seeing in terms of SPSF also in lot of stores where the double are present. So that is the reason that we have taken a strategy and we will be rolling out as I said almost 80% of the stores in next one year will have double and by 80% of the existing stores will convert or 80% of the expanded store you’re saying sir, 80% of the existing stores will have double at gondola in next one in 12 to 14 months.
Anand Mundra
Okay, so 200 out of this to. 250 will get converted.
Shreyans Surana
Yes.
Anand Mundra
And sir, how much revenue throughput you. Are seeing More as compared to earlier. Version of without double height gondola.
Shreyans Surana
So I think in terms of number very nation state. But what we are seeing the double height Gondola stores is giving us the stores that have been open is giving us a per square foot sale of around 11,000 rupees that we have seen which have been opened in this year. I think it’s at a very early stage compared to the non granola stores which are giving sales of around 9,000 rupees. If I compare that way apple to Apple. But it’s a very small sample that we have taken. I think by coming 2/4 I will be in a better position to tell you the exact numbers.
But yeah, right now the doubles are giving more sales than a single high granular stores on an average.
Anand Mundra
Thank you sir. Thanks for this. One more question sir. When are the funds expected to come?
Shreyans Surana
So see in terms of Warren it’s. It’s purely driven by the exchange Exchange. So we have submitted the documents and I think the document submission the company’s acceptance still discussing with the exchange it generally takes around 25 to 30 days. We are expecting by maybe the first week or second week of March we will be able to achieve. We will be able to get the approval from the exchange and maybe then from there maybe seven days. So we are expecting from 15th March to 25th of March.
We are expecting the fund flow coming in the company it’s over but it’s subject to the approval from the exchange. How much time they are going to take to approve that is the main thing.
Anand Mundra
The investor has got the shareholder approval.
Shreyans Surana
So I think they OGM happened today. We have got and I think their EOGM is on the board is approved and their EOGM is in the next week 25th of this month. I think they are expected to have the approval and post that the deal can be concluded after once we get the note from exchange.
Anand Mundra
Okay, thank you sir. Thanks a lot sir.
Shreyans Surana
Thank you.
operator
Thank you ladies and gentlemen. We will take that as our last question for today. I now hand the conference over to the management for closing comments.
Shreyans Surana
Thank you so much to everyone. Bazaar Style continues to deliver strong momentum driven by our differentiated value proposition, discipline expansion strategy, accelerating digital initiatives and strengthening operating leverage. We are building a future ready scalable and profitable retail platform. Thank you all for joining us today and for your continued support. As always, we remain available to address any follow up questions. Please feel free to reach out to us directly or through our investor relations partner, Stellar IR Advisor. Thank you so much.
operator
Thank you. On behalf of Philip Capital private client group. That concludes this conference. Thank you all for joining us. And you may now disconnect your lines. Thank you.