Cantabil Retail India Ltd (NSE: CANTABIL) Q3 2026 Earnings Call dated Feb. 06, 2026
Corporate Participants:
Vijay Bansal — Chairman & Managing Director
Shivendra Nigam — Chief Financial Officer
Analysts:
Unidentified Participant
Pavan Kumar — Analyst
Ankit Shah — Analyst
Naitik Mutha — Analyst
Harshit Raj — Analyst
Mehul Kataria — Analyst
Shrinjana Mittal — Analyst
Anand Mundra — Analyst
Arpan Rathore — Analyst
Hitaindra Pradhan — Analyst
Presentation:
operator
Ladies and Gentlemen, good day and welcome to the Canterbill Retail India Limited Q3 and 9 months FY26 earnings conference call. As a reminder, all participant lines will be in the listen only more and there will be an opportunity for you to ask questions after the presentation concludes. Before we begin, a brief disclaimer. The presentation which Cantabell Retail India Limited has uploaded on the stock exchange and their website, including the discussions during this call, contains or may contain certain forward looking statements concerning Canterbill Retail India Limited business prospects and profitability which are subject to several risks and uncertainties and the actual result could materially differ from those in such forward-looking statements.
Should you need assistance during this conference call, please signal an operator by pressing 0 on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Vijay Pansal, CMD Candidates, Canterville Retail India Ltd. Thank you and over to you Sir.
Vijay Bansal — Chairman & Managing Director
Good evening everyone. On behalf of Canterville Retail India LinkedIn, I extend a warm welcome to all participants joining us for the Q3 and 9 month FY26 earnings conference call. Joining me today are Mr. Deepak Banson, Full Time Director, Mr. Basant Goen, Full Time Director, Mr. Svendar Nigam, Chief Financial Officer, Mr. Mrs. Poonam Chahain, Company Secretary and our Investor Relations Advisor from Merton Capital. We trust you have had the opportunity to review our Q3 and 9 month FY26 result. The earnings presentation and financial statements are available on the stock exchanges and the company website. We are proud to report another landmark quarter with profit of 451 crores reflecting the strength of our strategy.
Robust 9 months FY26 performance including 20% revenue growth, 27% pet growth and a strong 6.3 same store growth. SSG demonstrates the enduring trust of our customers. The recent GSP rationalization has provided a meaningful boost to consumer sentiment further supporting demand across our portfolio. We continue to expand our footprint while deepening customer engagement. We believe that companies with strong brand equity, fast execution and extensive retail reach are best positioned to capture this upstream. Our continued investment in store expansion, product innovation and customer experience provide a solid foundation for the next phase of growth. Importantly, we are progressing well on our Vision 2027 a strategic blueprint aimed at expanding our retail presence and reach, improving and efficiencies and cementing can position as a dominant force in India’s fashion affair landscape.
I know. I now hand over the call to Mr. Swinder Nigam for giving update on the financial and operational performance of the quarter. Thank you.
Shivendra Nigam — Chief Financial Officer
Thank you sir and a warm welcome to everyone. Standalone Performance highlights for Q3FY26 Revenue from operations for Q3FY26 grew by 19% to 264.4 crore as compared to 222.6 crore in Q3FY25. EBITDA for Q3FY26 grew by 31% to 95.2 cr as compared to 72.5 cr in Q3FY25. Ebitda margin for Q3FY26 improved to 36% as compared to 32.6% in Q3FY25. PAT for Q3FY26 grew by31% to 45.1 cr as compared to 34.4 cr in Q3FY25. PAT margins for Q3FY26 improved to 17.1% as compared to 15.4% in Q3FY24. Now standalone performance highlights for 9 months FY26 in 9 month Revenue from operations for 9 months FY26 grew by 20% to 599.1 crore as compared to 501.3 crores in 9 month FY25.
EBITDA margins for 9 month FY26 grew by 27% to 186.2 cr as compared to 146.4 crore in 9 month FY25. Ebitda margins for 9 month FY26 improved to 31.1% as compared to 29.2% in 9 month FY25. Coming to PACT for 9 month FY26 grew by27% to 66.5 crores as compared to 52.3 crore in 9 month FY25. PACT margins for 9 month FY26 improved To 11.1% as compared to 10.4% in 9 months FY25 on the operational front, we continue to scale efficiently with a total of 646 stores across the country covering a total retail area of 8.82 lakh square feet.
These results are from the strength of our business model and our ability to drive consistent high quality growth. We will now open the floor for Q and A session. Thank you.
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may please press STAR and one on their Touchstone telephone. If you wish to remove yourself from the question queue, you may press STAR and two participants are requested to use handsets while asking a Question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Pavan from Ratna tr. Please go ahead.
Pavan Kumar — Analyst
Can you decline. What is the square feet for the mature stores or that you have used to calculate the SFG and what was the revenue? So you I think wife has not yet. Your question is what is a per square feet sale in terms of mature stores and how? Right. I’m using my handset. Is it not clear?
operator
Yes sir. Please go ahead. It’s not completely clear. Can you please repeat the question again please? What is the square feet area that has been used to calculate the SSG which. Which is like for the mature stores and also what is the revenue per square feet of the mature stores that has been used to calculate that particular ssg?
Shivendra Nigam — Chief Financial Officer
So I can broadly give you the answer if I’ll take my per square feet sale which we can be considered as a matured Last year, the overall store running for the year this year that is for the quarter it is 1018 as compared to 962 last year.
Last year. And if I’ll take nine months it is 790 rupees per square feet as compared to 743 rupees square fit last year. So which can be taken L2L as a mature store. That is revenue per square feet. That is the number that you gave us, right? Correct. Yes. Yes. And what would be the square feet that you have used to calculate it exactly? I mean what is Agree. So our total area is 8. 8. Our total area is 8.82 lakh square feet. But the question I replied in terms of it, that is 7.08 square feet lakhs.
Oh. Because for this matured store I am taking the definition of L2L and the difference is this one. So new store in last one year has been removed, right?
Pavan Kumar — Analyst
Okay. Got it. Got it. Thank you. So the answer I got was it was 1018 revenue per square feet. Correct. LTN. Yeah. Okay. Okay. Thank you.
operator
Thank you sir. The next question is from the line of Ankit Shah from White Equity Investment Advisors. Please go ahead.
Ankit Shah — Analyst
Thanks for taking my question, sir. Employee cost is very well controlled. So how are we managing this in spite of the store expansion? Can you help us understand this better and also share the trajectory going forward?
Shivendra Nigam — Chief Financial Officer
So what I got the question is salary is being maintained, right?
Ankit Shah — Analyst
Yes. So employee cost. Salary cost is very well controlled. The salary cost is not growing that fast in spite of the store expansion. So how are we able to manage this and the trajectory going forward.
Shivendra Nigam — Chief Financial Officer
So our store is approximately 9 to 10%. Right. So this is the third quarter.
So obviously when the third quarter revenue is slightly higher but overall 10% is my salary cost at the front end level and going forward the trajectory will be approximately same. So we are controlling in a manner that this is approximately plus minus half percent is a different thing. Otherwise it’s approximately 10%, 9 to 10% and going forward in the same trajectory. Okay, can you share the number of stores in the franchise model? As of December 25th, the total number of franchisee stores is 131 out of total 646, which is 20%.
Ankit Shah — Analyst
Perfect. Okay. And sir, in case of franchise store the inventory is on their books or is the inventory in our books only the finished goods inventory line in all the stores including franchisee stores in company’s book it’s a stock transfer and all the merchandise which is sold to the end user is in companies GSTN. So including franchisee stores, all 646 stores inventory is coming in companies book. Perfect. So in case of franchisee they own or rent the store on their books. But inventory there, all the front end cost is there. They are getting a fixed commission net of gst.
Whatever they are selling in a monthly basis they are getting a commission which is in the range of 27 to 28% and all the front end costs including rentals, salaries of their employees, electricity or print and cost to be paid by them. And we are taking the deposit against the inventory what we are supplying. Perfect. So the commission expense in the annual report that was about 6% of largely that, largely that. So this is. Okay. Okay, that is from my side. Thank you. Thank you so much.
operator
Thank you. Sir. The next question is from the line of NAITIC from NV Alpha fund. Please go ahead.
Naitik Mutha — Analyst
Hi sir, thank you for taking my question. So my question is, you know we’ve seen about 5 or 6% of SSG give or take and with that we have done almost 26% clean, less EBITDA margin. So I. And if I look at your 3Q, you know it’s usually very good in terms of EBITDA margins both in top line and margin. So I want to understand the seasonality better because if I look at the gross margins they are not as high. But your EBITDA margins are. So it’s clearly not better pricing that you are getting in 3Q which is leading to this.
So I want to understand the seasonality in the margins.
Shivendra Nigam — Chief Financial Officer
Absolutely. So we need to understand how the sales is Growing. Right. So always Q3 is better in terms of sales because ticket value due to winter is high. Now the unless the margin is same 60% margin quarter on quarter say we are being maintaining but the store expenses are mostly fixed in nature. So that is I always see third quarter EBITDA or in fact pat margin is always very high because sales has higher and better margin. We are getting because mostly fresh sale is also there. October was almost there then. So third quarter sale in terms on we are maintaining obviously the gross margin at the same level.
So that is why this quarter particularly your EBITDA margin is high.
Naitik Mutha — Analyst
Got it. So so basically if I were to put it in one sentence is because the ticket size is higher, average bill. Value way higher compared to other quarters that business model.
Shivendra Nigam — Chief Financial Officer
Correct? Absolutely. Yeah. Perfect answers.
Naitik Mutha — Analyst
Another question is you know there was a gratuity provisions or changes made. So have you taken those in the employee cost? Are we yet to take it or.
Shivendra Nigam — Chief Financial Officer
The impact of all being considered? All been considered. All the gratuity employees quarter on course basis everything has been considered. There’s nothing new. We are already providing the new labor law codes. So everything has been taken care of. Everything is accounted for in these numbers only.
Naitik Mutha — Analyst
Got it? Got it. Okay. So that’s it from Sir, I will fall back in the Q5 questions. Thank you.
operator
Thank you sir. The next question is from the line of Harshit from Anandrati. Please go ahead.
Harshit Raj — Analyst
Good evening. Congratulations on a great set of numbers. Just a couple of questions from my end. Yeah, so just a couple of questions. So what would be the sustainable level of SSD that we are targeting going forward in the next one or two years?
Shivendra Nigam — Chief Financial Officer
Same in any of the earlier commentary as well. We are targeting 6%, 5 to 6% which is a long term sustainable number. Maybe couple of quarter up and down but long term sustainability number is approximately 6 to 7%.
Harshit Raj — Analyst
On the GST side, what are the benefits that we have seen in the gst reduction? Have you seen any incremental footfall because of reduction in GST?
Shivendra Nigam — Chief Financial Officer
So the day 22nd of September the GST came. We have seen a great momentum. So the October was great. Number was superb. Right. In fact seasonality effect was also there. Wedding effect was also there. December it was little bit came down on a flatter side. But overall quarter is fine. January was the same case and now it is again picking up. So the momentum is definitely there. GSE rationalization has definitely made the changes in terms of overall business specifically for retail. So momentum is there and it looks.
Harshit Raj — Analyst
Like a long term okay, and this last couple of questions, what would be your guidance in terms of revenue and any gross margin expansion going forward for FY27?
Shivendra Nigam — Chief Financial Officer
So we are continuously have a target of approximate 20 plus percent in terms of revenue growth. So definitely this year and next year our vision statement was clear. By 2027 we are crossing thousand crore of revenue mark. And in terms of gross margin. Yes 58, 59% we are operating and this is probably couple of percentage or 5 percentage may improve. The target is to make the company thousand crore revenue company by next financial year with a margin of 58.59percent gross margin.
Harshit Raj — Analyst
Okay, thank you sir and congrats once again. Congratulations on a great set of numbers. Thank you.
Shivendra Nigam — Chief Financial Officer
Thank you so much. Thank you.
operator
Thank you sir. The next question is from the line of Mehul Qataria from Insight Advisors. Please go ahead.
Mehul Kataria — Analyst
Good evening. Congratulations on great set of numbers. Sir, continuing the previous conversation which you just had with the previous participant. On account of this momentum which you’re talking about on the GST measures which have been come which has come up, do you think that for the FY 26 or 27 you there is any change in guidance in terms of revenues, especially FY26 for that matter, given the momentum in this quarter continuing that that.
Shivendra Nigam — Chief Financial Officer
Momentum will be continued. We may have a increase a couple of percentage. So always we have been giving the numbers which we feel is hardly feasible. So this financial year, next financial year this growth would be maintained at least this growth will be maintained what we are expecting.
Mehul Kataria — Analyst
And given this growth momentum, any change in guidance in terms of number of stores opening by the end of this fiscal any guidance for the next financial year as well in terms of number of stores, new stores opening, new stores opening.
Shivendra Nigam — Chief Financial Officer
As we have already always said that we plan to open 75 new stores in a year and the size of the store is increasing because we are opening the average store size of 1600-1700 square feet now. So as of now our target is same. But if we see some very good pickup in the demand in the next quarter, then again we can plan the store expansion in aggressive manner and just.
Mehul Kataria — Analyst
Continuing on the store expansion. How’s the focus with regard to those focus stores for women and kids and all, how is that going along? Means any specific number would like to throw on that going along.
Shivendra Nigam — Chief Financial Officer
In the same lines, 10% of the stores are exclusive ladies and Kids stores and 20% stores are the family stores. So the expansion is going in the same lines but the area has been increased not only in the family stores but in the exclusive men’s category and the men’s ladies category also the average store size has been increased.
Mehul Kataria — Analyst
You’ve already been giving SSG growth. But in any calculation numbers, when you compare these exclusive women and kidswear stores compared to previous years or anything like that, do you have those kind of numbers as well in terms of how what growth are you seeing in those kind of stores on like to like basis?
Shivendra Nigam — Chief Financial Officer
So the overall if I’ll take in terms of broad picture, right Approximation approximately these number are same. Right?
Mehul Kataria — Analyst
Right. Okay.
Shivendra Nigam — Chief Financial Officer
Because yes we started so they are taking maturity. In fact, if I’ll take ladies and kids, they are this is the year where they have been started maturing. So we are expecting more cell.
Mehul Kataria — Analyst
Right.
Shivendra Nigam — Chief Financial Officer
So from next financial year it is better the stores what we have opened for last two years, right. So how they have been behaving. So they are still in the process. But the results in terms of exclusive store is absolutely as per our expectation. So broadly 6%, 7% in all those category of the stores is physical. What we are looking at it.
Mehul Kataria — Analyst
So given the fact that the base of these stores which are getting mature will keep increasing, do you expect that probably with the maturity coming by EBITDA margins to improve further in the next fiscal means. Do we have a revit means just like revenue guidance on the EBITDA margin? Would you like to comment upon it as well?
Shivendra Nigam — Chief Financial Officer
See last year, if you see in last two years FY24 was an extra year. Then in last two last year and then last year we have shown improvement in the beta margin 15.8% to 16.7 and we are extremely hopeful this year we have to take it back plus 18% pre in December post India 30% with touch this year. So yes couple of percentage of margin improvement in terms of EBITDA is always there. We are targeting that.
Mehul Kataria — Analyst
And so last question, just a bookkeeping question on working capital. If you can just give us an overview about it or currently as well as what do you see expecting in FY26 to close off this year.
Shivendra Nigam — Chief Financial Officer
Improvement would have been there last year. If you see our Inventory days were 121 days. We are expecting to be come down little bit. But earlier in all our commentaries and we always mentioned there is an ideal situation for the company is somewhere in between 100 and 120 days in terms of inventory and working Capital is approximately 105 days. Considering the MBQ of the stores, what we need to be there on the shelf all the stuff. So that would be maintained not margin already the Numbers have been controlled in terms of inventory, in terms of working capital.
But we are keep on working at it. So this year as compared to last year some improvement you would be able to see.
Mehul Kataria — Analyst
Okay sir, thank you. Congrats once again on the basis. Thank you so much sir. Thank you.
operator
Thank you sir. The next question is from the line of Shirinjana Mittal from Ms. Capital. Please go ahead.
Shrinjana Mittal — Analyst
Hi. Thank you for the opportunity and congratulations on the great set of numbers. I have a couple of questions. Can you. Can you help us understand like if I look at the realization, the realization has come down from 1400 to thousand rupees. 1100 rupees. And how much of the impact can be justified by the GST rate card?
Shivendra Nigam — Chief Financial Officer
Once again, sorry, can you please how 1400. I’m not getting it actually. Can you please repeat it?
Shrinjana Mittal — Analyst
I was so I was just saying. I was just looking at the realization for peace. The realization for these has come down year on year. There is some impact of GST also I believe. So I just wanted to understand like what is the blended impact of GST on the final price for us?
Shivendra Nigam — Chief Financial Officer
Yeah. If I take it the ticket size for the quarter. Right. October to November quarter in totality. Right. Ticket size. So it has been not been reduced. Actually overall 9 month is 4387 is my ticket size. And my average selling price is also 1070 as compared to last year 1026. So it is improved actually by 4, 4% curve. Question. Yeah. So because my ASP has been introduced, volume is so balanced mix is there. We did not notice any reduction in terms of selling price and ticket size as well. Yeah, right. Right. Just the GST impact. If you can quantify like in terms of just the final price, how much like in terms of realization for us, what would the impact. What was. What would the impact?
Shrinjana Mittal — Analyst
GST rationalization, right?
Shivendra Nigam — Chief Financial Officer
Yes. Yes. So what we did the day 22nd of September it came so whatever the inventory would have been there as per guideline we have been passed on. Whatever the GST benefit has been there to the consumer. Right. Whatever the inventory we had. And then we have taken care of in terms of pricing as well going forward. New one. So that rationalization impact, you can see customer momentum was there. We have noticed immediately in the nine days of September, October, November. Obviously it came down in the month of December and January. Now it is again started picking up.
The momentum is positive. What we can see and going forward also look like, you know, two and a half lakh crore of money has been given pumped in by the government itself in last one year for you know, end consumer. So consumption would definitely have to boost. No doubt about it.
Shrinjana Mittal — Analyst
Right. One more question. The E Commerce sales number can you share for this quarter and what was it for the same quarter last year?
Shivendra Nigam — Chief Financial Officer
Yeah. So overall same E Commerce that billing method has been changed. So overall volume growth is approximately for nine months is 11.4% in terms of E Commerce. However the even after change this billing method the value has been increased for 5%. So our target is to take it to last year we closed it at 6.2% and this year 7% approximately remained.
Shrinjana Mittal — Analyst
So just in terms of absolute value, how what would that number be?
Shivendra Nigam — Chief Financial Officer
37Cr in nine months.
Shrinjana Mittal — Analyst
37Cr in nine months. And and for this quarter, December quarter particularly what would that number be and how what was it last year?
Shivendra Nigam — Chief Financial Officer
So the my December quarter number was 17.7 crore.
Shrinjana Mittal — Analyst
Okay. And this was last year for last.
Shivendra Nigam — Chief Financial Officer
Year I think 16 something I just need to recheck. So because that was also already having a higher value for Myntra and what I explained last year as well. Right?
Shrinjana Mittal — Analyst
Yeah. Understood, understood. Yeah. Just one last question if I can squeeze in. You mentioned the we have a 25 growth plan. So out of this 25, 5% would be SSSB growth and 20 would be led store expansion. Is that. Is that how we are thinking?
Shivendra Nigam — Chief Financial Officer
So yes. We are continuously at the rate of 20% and minimum target we are having at 20%. Obviously it will improve, right? It may go up to 22 but 25 looks a little bit later on side. Yes, this includes 6%, 7% approximately same with store sales growth. And the balance would be coming from the store expansion as well as E Commerce segment. Because E Commerce is operating as of now is 6% then next year by the thousand we are targeting 8 to 10%. A lot of things have been happening in e commerce.
Shrinjana Mittal — Analyst
So 6, 7% out of this 20.
Shivendra Nigam — Chief Financial Officer
You can say from the same sources but then balance 30%. 14% would be mix of store expansion as well as E Commerce.
Shrinjana Mittal — Analyst
This was very helpful. Thank you for answering the question. Thank you.
operator
Thank you ma’. Am. The next question is on the line of Anand Mundra from Soar Wealth. Please go ahead.
Anand Mundra — Analyst
Good evening sir. Congratulations on good results.
Shivendra Nigam — Chief Financial Officer
Thank you. Thank you.
Anand Mundra — Analyst
Wanted to check what is the impact of the new labor code on the penalties.
Shivendra Nigam — Chief Financial Officer
So just. And another participant been asked. So in new labor code we have already been compliant with earlier one. Our basics was always been 50%. There is some correction. In few cases was there which has been taken Care of our gratuity is accordingly that. So all the compliances are mostly in place. If there is any gap, my auditor is also in concert with us. We will take care of that. However, largely 99 all the compliances has been done. We are already in line with that.
Anand Mundra — Analyst
Okay, so there is no one time expense because of.
Shivendra Nigam — Chief Financial Officer
No, no, no. We were already compliant of that. That’s what we said.
Anand Mundra — Analyst
Yeah. Okay, so second question is what is the profit of profitability of family store versus our traditional men’s store? What is the profitability difference?
Shivendra Nigam — Chief Financial Officer
The EBITDA is 2% higher in the family stores than the men’s store. So. So we have a better profitability in the family stores than the only men’s stores because the rental per square feet comes down in the family stores and the sales vis a vis doesn’t come down that much. So profitability is higher in family stores.
Anand Mundra — Analyst
Okay, that is good to know sir. So that in that case, sir, are we opening more family stores incremental as compared to traditional stores or how do you plan this?
Shivendra Nigam — Chief Financial Officer
So we, we want to open more family stores but sometimes it’s depend upon the availability also because we don’t want to let go of a good property if it is of a smaller size. So we some many times open the only men’s or men’s lady store also. But if there is a right opportunity and the good opportunity definitely for a family stores and in the future also our focus will be more on the bigger stores only.
Anand Mundra — Analyst
Okay. Sir, in one of the slides you mentioned that 50 is repeat customer. So what was this number say 3, 4 years back?
Shivendra Nigam — Chief Financial Officer
Sir, Sir, I noticed I have data as well the year of COVID I remember 2021 FY. My repeat was 44. And every year we are noticing 2.2%. And so it started in four years back 44% and approximately it is operating as of now 50 to 52%. Okay, so. So very finely balanced new customer is coming approximately couple of percent may be but largely the fine balance will maintain of 50 50.
Anand Mundra — Analyst
Understood. So one last question on online sales. So what is the process? We sell it to all this e commerce website and they can return back to us if they are not able to sell or it’s on.
Shivendra Nigam — Chief Financial Officer
All the inventory is there with us. We have our own warehouses and all the inventory is made live to our own WMS software. And so we don’t send the inventory to the marketplaces, it’s with us only. Okay.
Anand Mundra — Analyst
So whenever there’s an order on the website, the bill will be generated from your end?
Shivendra Nigam — Chief Financial Officer
Yes, the dispatch is done through our houses and we are also operating through Omni channel. So the dispatch is also done for our stores.
Anand Mundra — Analyst
And what is the return, sir, in all in online sales?
Shivendra Nigam — Chief Financial Officer
Well, the industry standard is something around 30%. So we, we also have a return percentage of around 30 to 33% and we are trying our best to, you know, just get it down around that 30% mark.
Anand Mundra — Analyst
Okay. And sir, with respect to our pricing in online as compared to offline, is it similar sir, or online we are giving more discount or. I don’t know, any thoughts on that?
Shivendra Nigam — Chief Financial Officer
No, the pricing is very much similar and we also try to maintain the parity between the discounts. It’s just that sometimes the portals give the discount from their own, you know, pockets whenever there’s a sale or during, you know, some sale periods. Otherwise from the brand level that counting is pretty much the same.
Anand Mundra — Analyst
Okay, thank you sir. Thanks a lot sir. Congratulations, sir. Once again, sir.
Shivendra Nigam — Chief Financial Officer
Thank you. Thank you. Thanks.
operator
Thank you sir. The next question is from the line of Ankit Shah from White Equity Investment Advisors. Please go ahead.
Ankit Shah — Analyst
Thanks for taking a follow up. Sir, we’ve reported 18% volume and value growth. So as such, you know, we’ve not reported any pricing growth. Can you explain this a little bit? This is for the quarter or nine month we are discussing. Yes, this is called this is for the quarter that we’ve reported 18% volume growth for this quarter and our revenue growth is also similar. 18% is the quantity growth total. Yes sir, that’s the number. Have we not taken any price hikes during the year or is this because of larger contribution from accessories or low, low pricing products? Can you kind of explain that? So in this case, in this quarter if you say we have a 7, 18% of the quantity growth right in totality, however the price because yes, the pricing for the quarter itself will say take exclusively that not under that much higher side.
Yes, the pricing is not that higher compared to the same quarter last year. So last year same passive reason, third quarter and this year’s pressing season, third quarter, the pricing has not changed as per the reported number. So what would be the reason for it? Either you’ve taken a price hike but accessories etc have brought down the price per piece or is there something else if you can share some light on that. Yes, there’s a change in the mix obviously because my ASP for the quarter, this is what we are talking about company as a whole, not L2L.
So yes, if this say my ASP AF is this is almost same. Last year it was approximately 1.92 and this year 1.91. So the change in the mix is there. Okay, agree. You are right. Okay. So we are selling more of lower price products or slightly cheaper products are selling more difficult to quantify because it’s a mix. Right.
Shivendra Nigam — Chief Financial Officer
So it’s a mix is always being there. Plus GST changes are also there. That is also impacting little bit of. Because October and November we completely passed on to the customer because old inventory was there which was selling so mostly volume growth. That is also very important that the volume growth is total there and pricing growth is almost visible. In terms of ASP. Last year my ASP was 1339 and this year my SP was 1349. Totally marginal difference. But very important one, we have increased very good in terms of basket size. So even the order values have broadly remained same.
Okay. They have improved slightly. Yes, you are right. My order value from the ticket sizes increased from 4,500 rupees to 4,900 every time. Absolutely. Price increase is there. Yeah. Yes, yes, agree with you. Yeah, that’s. That’s right. So just wanted some clarification when we are reporting this volume. But this volume includes the accessories piece, right? Yeah, accessories is also all that company as a whole number is there. Includes accessories, ladies, everything, all the categories. Okay.
Ankit Shah — Analyst
Okay. So one question I had was on the branding side. So we’ve done very well in terms of efficient retailing. Even you know, early entry in some dietary cities and we’re doing well that side. But what are we doing for branding? I mean if you take for example Peter England or Louis Philippe dinosaur, etc. You know, there the focus on branding is quite there. So you know we can see those brands around but our logos are not visible. So in terms of advertising etc. So can you share your thoughts around you know this in terms of your plans for the medium term for the company from three to five year perspective.
Is there any thinking on this side?
Shivendra Nigam — Chief Financial Officer
So our branding goes both in the traditional way and the digital marketing way. So we are doing both kind of ads. So for the new stores we are doing aggressive advertisement campaigns and for the old stores we are doing majorly SMS campaigns. But our main strength lies in the location of the store because location of the store is such a good location that we don’t need much marketing support.
Ankit Shah — Analyst
The signage size is big, the store facade is good.
Shivendra Nigam — Chief Financial Officer
But yes, when it comes to the future we planning to go for some aggressive advertisement campaign like brand investor kind of thing. But that’s not planned in the short and maybe after a year or two we go with that kind of brand.
Ankit Shah — Analyst
Gotcha. Got it. That’s it. Thank you so much. Thank you sir. Thank you sir.
operator
The next question is from the line of Tanmay Royal from an individual investor. Please go ahead.
Unidentified Participant
Hi. Thank you for the opportunity. Actually most of my question has been answered. Just wanted to check like how you are seeing that next Q1 shaping up. Because remember last Q1 it was like completely washed out and we got a negative ssg. So how this quarter is shaping up. Do you think we’ll be able to maintain that 5 6% of the same store sales growth? So this we are discussing Q1FY27, right? Yes, yes. So it looks positive because last year also we have a positive numbers in that is FY26Q1 also we have a positive number.
Yeah, 26Q1 it was minus 1.3. No Q1 of FY26.
Shivendra Nigam — Chief Financial Officer
Yes. It was very good actually. 11.3% Q1 FY26. No cyclic. The result came in just now. I opened the PPT and it was showing like minus 120. Maybe you can check maybe last year maybe FY25. You are talking about FY25. Yeah. You want FY25 by minus. Yeah.
Unidentified Participant
Yeah. So Q1 FY26 was positive and we are expecting better Q1 FY27 as well. So okay. Q4 and Q1 are the best quarters for us. Right. So in terms of. Yes. Q3 in terms of EBITDA margin and sales as well. And Q1 is also good. Q2 is slightly precious. That’s all.
Shivendra Nigam — Chief Financial Officer
The quarters are good. Okay. So and that’s for the long term goal. We are looking at 20% growth like which is currently 20% growth. 800 something. So maybe around 160 crores extra for the next year. I mean 27. Yeah. Same thousand crore is on the car. Definitely the margin of. So like part of margin of how much you are expecting the same. We are expecting a pat margin because of GST rationalize and everything. Plus 12 maybe it may be 13. We’ll look at it. But whatever we are coming it is definitely going to improve couple of percentage.
Okay. Okay. So I think that’s it. I got most of the question being answered. Thank you. Thank you sir.
operator
Thank you sir. The next question is from the line of Arpan Rathod from Insight advisory. Please go ahead.
Arpan Rathore — Analyst
Good evening sir. Congratulation on a great set of numbers. I have couple of questions. My first question Is track fashion. Can you tell us more about how the changes in merchandise which we do.
Shivendra Nigam — Chief Financial Officer
So we. We have been majorly doing the basic kind of clothing. But yet. Yeah. Yes. We are introducing some fashionable garments also for the younger generation. So this year into. Into the testing phase. So as we get the response, we will increase the share of the fashionable garments in the total collection.
Shivendra Nigam — Chief Financial Officer
Okay. So we expect this to be more prominent from Q2 onwards or Q2FY27.
Arpan Rathore — Analyst
Yeah, after Q2FY27 only we will be. We may be increasing. But as we haven’t like tested the voters completely. So let. Let the outcome. Let us to conclude about it then only we will be able to give the clear picture.
Shivendra Nigam — Chief Financial Officer
Sure. This is more of a qualitative question. You see, the competition is not doing great and we have been consistently doing a good set of numbers. So any secret sauce which we should know. You know, numbers have been really great. You know, when I compare other companies in the fashion segment, obviously you know, I understand there is no direct competition. But otherwise we are doing good. Better than all of them. So any secret recipe or secret sauce which you would want to tell secret.
Arpan Rathore — Analyst
Source should always be kept secret. It should not be revealed.
Shivendra Nigam — Chief Financial Officer
Continue doing that. My other question is now that we since we have been doing great in terms of numbers and profitability, obviously we are generating good amount of free cash flows. The company has been consistent in paying dividends. But can we look at incremental dividend in terms of percentage or secondly you considering that now that we have the recipe, why can’t we accelerate our store expansion and you know, rather than 20% growth, why don’t we look at 30% growth or thereabout.
Arpan Rathore — Analyst
Store expansion. Store expansion never been constrained due to the availability of the capital or the fund. So we have been doing expansion to the best of our opportunities coming in the retail sector.
Shivendra Nigam — Chief Financial Officer
So. But yes, because they’re increasing the size of the store, the expansion can will be little faster. So if you see that coming back to your question. We have increased continuously. Our retail area numbers may be 60 but now opening the bigger store in last one year December to December. If you compare again 1.44 like a square feet of area has been added. So now we are opening the bigger store plus earlier also I said there are 10% approximately. You know renewals are due because we have a 600 plus stores now. So we are opening more but at the net side of sometime lesser. However the square feet is continuously.
Arpan Rathore — Analyst
Sure. And any super India has signed couple of trade deals. The European Trade deal is more relevant considering that you know it opens up the textile and all. So any thoughts there though we, we do our own branded stuff only. Any thoughts there? You know going to Europeans it opens up in.
Shivendra Nigam — Chief Financial Officer
In single brand details. There is already 100% FDI allowed in India. So I don’t there will be much competition coming. But if it will be coming. Yeah. We are very much prepared to tackle it. And with the kind of marketing footing we have. Like we have 650 stores, 300 cities. So it will not be easy for any new brand to compete us with at all the places and at all the locations.
Arpan Rathore — Analyst
My question was reverse. Are we looking at an export opportunity?
Shivendra Nigam — Chief Financial Officer
We are. We are doing in Nepal in the market separate. We are looking at it. Let’s have a better opportunity curve because master franchise can only be given so that inventory risk can be eliminated. So but not immediately. You will be able to see later on. So very focused areas we have. But yes, that is okay. Great.
Arpan Rathore — Analyst
Sir, once again congratulations on a very good set of numbers. All the best for future workers. Thank you.
Shivendra Nigam — Chief Financial Officer
Thank you so much sir. Thank you.
operator
Thank you sir. The next question is from the line of Anand Mundra from Soar Wealth. Please go ahead.
Anand Mundra — Analyst
Yes. Thank you for giving me opportunity again. Sir, wanted to understand about our gross margin. What is the reason for the improvement in this quarter?
Shivendra Nigam — Chief Financial Officer
Sir, so same thing Anandji. Whenever the quarter one you see the market. I’m comparing sir Q3 to Q3. Sir, last year Q3 our COGS was 39. This year it is 36.9. So 2.4% improvement. 2% improvement. Is there so yes, some correction in pricing as well. Let’s efficiency little bit involvement is there. It’s a mix of those. Some correction of pricing is also there.
Anand Mundra — Analyst
Okay. And then one solution. If I’m on slide 12, we have given cogs and when we have when we are giving gross margin or cogs in slide number. Slide numbers are 33. They are not matching. Because over here raw material expenses are only taken. Over there something else is also clubbed in two cogs. So if I want to compare FY27 numbers with YTD FY26 I can’t correct.
Shivendra Nigam — Chief Financial Officer
I, I, I’ll, I’ll check it and come back to you on this. I’ll check it come back. Maybe some typo error would have been there. I’ll check it and come back.
Anand Mundra — Analyst
Okay. And one last question on this. What is your gross margin guidance for say this year sir or including it’s similar to last year. It would be slightly improvements.
Shivendra Nigam — Chief Financial Officer
We will be able to see some improvement. Maybe a 1%, but some improvement would have been there.
Anand Mundra — Analyst
Okay, thank you sir. Thanks a lot sir.
Shivendra Nigam — Chief Financial Officer
Thanks a lot, sir.
operator
Thank you, sir. Ladies and gentlemen, to ask a question please press star and one now. Participants who wish to ask questions may please press star and one at this time. The next question is from the line of Hitendra Pradhan from Maximal Capital. Please go ahead.
Hitaindra Pradhan — Analyst
Hi sir. Thanks for the opportunity. So my first question is, you know, few, you know, data points needed. Few data points. So what was your, what was your rental cost for the nine months?
Shivendra Nigam — Chief Financial Officer
Total rental cost for the nine months, right? Yeah, yeah. This is a. Approximately, I’ll just give you the exact figure. 74 crores.
Hitaindra Pradhan — Analyst
74. Yes. Okay. Yeah. And the ESOP cost?
Shivendra Nigam — Chief Financial Officer
Which one?
Hitaindra Pradhan — Analyst
Any, any ESOP cost that was part of the TNDL adjustment? No, no, it’s of course. Okay. And, and this would be same for the full year. It would be, you know. What would be the rental cost?
Shivendra Nigam — Chief Financial Officer
Rental cost for the full year would be approximately 95. Approximately 95 to 100. Last year it was, last year it was 83 crores. This year it would end up approximately 100.
Hitaindra Pradhan — Analyst
Understood, sir. And sir, I think in the beginning of the call like you answered regarding the mature store, like you know, the, what was the space and you know, the triple HD was coming around 6% and the space growth was somewhere around I think 20, 22% or 25% somewhere around that number. So sir, I just wanted to understand, you know, for our new stores which have been opened in last year. So how are they ramping up and what is the expectation like what is the current, you know, sales per square feet on the new stores and what is our expectations of, you know, them ramping up, you know, eventually and what, what is the timeline for them to, you know, come to a mature store level.
Shivendra Nigam — Chief Financial Officer
Earlier? Also whenever we are opening the maturity period for the store we are considering as two to two and a half year and when that is also our payback period, two to two and a half year. So as I just explained, my matured store, if it’s, I’ll take that has been grown from 743 to 790. However my overall company per square feet 746 as compared to 790. So you can say new storage delivery is approximately 675 rupees, you can say and over a period of time when it has been matured, it is coming to the maturity level in two to two and a half years.
Hitaindra Pradhan — Analyst
Got it sir. And again, to reiterate previous participants point, most of the players have, you know, kind of struggled to post good numbers this quarter citing the festive next shift and you know, the overall winter demand oriented issues. So says again, you know, just want to, you know, understand what kind of help you, you know, achieve good triple HG and overall numbers this quarter. I mean, was it due to your geographical mix which is good towards, you know, north and west or you know, your product positioning, you know, if you can just, you know, give a little bit more color on that.
Shivendra Nigam — Chief Financial Officer
So we have ASP of like 1050 rupees and most of the brands are either above this ASP or below this ASP. Very few brands are operating in this kind of aspect. Right. So we have competition, we have very good efficiency in the operations and company long term fundamentals have kept very strong. So all these things over a period, period of time have made, made up these numbers. So it’s not just functioning of 1/4 or 2/4, it’s a long term vision. Any long term effort. No, sorry. That makes sense. Just wanted to see if you see any kind of demands opening in, you know, any of your like, you know, geographically or you know, any tier one, tier two mix. By the way, sir, you are, you are present in mostly in tier 2 tier tier 3 cities or what is our mix if you can guide us. So our mix is 20 stores are in tier 1, 40 in tier 2 and 40 in tier 3 towns and demand have been good in all the tier tier tier 1, 2, 3 towns. So there is no particular category which is delivering more and other category delivering less. So we are getting any demand slowdown necessarily. Slow down. Every region is contributing equally.
Hitaindra Pradhan — Analyst
Got it sir. And in your adjustments are like, you know, again, you know, previous participants, you know, pointed, you know, asked, I just want to, you know, again, you know, push you on that. So sir, you know, this is, this business is about you know, finding you know, the trains or catching the trains and you know, keeping, keeping very fresh inventory in the SOPs. And also sir, what has been your strategy around that? I mean do you do it, do you use any kind of, you know, tech platforms or do you your you know, strategy and how do you achieve that? How do you execute on that, you know, to have fresh inventory, fresh trends in your stores.
Shivendra Nigam — Chief Financial Officer
So trend forecasting have been, has been done with the research, both online and offline research. So we have a team of designers this activity every, every season. So trends have been done forecasting and we believe that the more we Refresh our inventory faster, the better will be the sales. So we have a vision to be that not more than one year inventory should be at the fresh stores. So we are trying to bring down, bring down the aging inventory in the stores. So that’s why the results are getting better day by day because we are moving towards the better rotation of the inventory at the stores.
Hitaindra Pradhan — Analyst
Yes. What is your internal target to you.
Shivendra Nigam — Chief Financial Officer
Know, churn out the inventory. How like you, if you suppose you know the inventory doesn’t get sold off so how soon you basically you know turn them out and replace with new inventory in your new kind of, you know, close and all. What is your internal metrics?
Hitaindra Pradhan — Analyst
So any product which is getting one year old we move it to the fos and, and the online space. Because online space is also for the clearing the left inventory.
Shivendra Nigam — Chief Financial Officer
But you keep the close for one year in your stores. You don’t you know it out within a quarter or two quarter, you know like that.
Hitaindra Pradhan — Analyst
One year.
Shivendra Nigam — Chief Financial Officer
One year. One year.
Hitaindra Pradhan — Analyst
We are keeping it. Okay, okay. Okay. So final question is what was your like I didn’t catch the part where you you know mentioned the working capital in the inventory day. Working capital days was only 220 days if I got that right. What was the invented day this year? Last year?
Shivendra Nigam — Chief Financial Officer
Inventory. Yeah. Finished goods inventory days. Target is last year 120. We are trying to limit down and you will be able to see some lesser number working capital that is net of creditors. That would be approximately 100205 day. So working capital 100205 days and inventory raises and between 110 to 120 days.
Hitaindra Pradhan — Analyst
And what is your target? Sir, do you want to, you know.
Shivendra Nigam — Chief Financial Officer
This is the target because considering our mbqs and my shelf requirement my ideal number is 120 days. Before 5 days we may claim it down but there is no drastic change. You’ll be able to see because I have to keep five piece per square feet in my shelf and back in two piece. So seven pieces are my requirement. And considering it’s the cost, my 3000 rupees per square feet is the cost. So very simple. If you take it to 9 lakh today, square feet of the state 2 lakh 70 thousand. So that is 270 crore.
That’s inventory. So that would be the 120 days.
Hitaindra Pradhan — Analyst
Got it. Okay sir. All the best. Thank you so much sir.
operator
Thank you sir. Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to management for closing comments.
Shivendra Nigam — Chief Financial Officer
To conclude, 9 months FY26 has demonstrated our commitment towards annual targets for the FY26. Our results reflect the enduring strength of the Cantabille brand, the disciplined execution of our teams and the growing appeal of our products among consumers across India. The first nine months of FY26 have been encouraging, marked by robust financial performance. As we enter the final quarter we remain focused on delivering long term value to our shareholders and with a resilient business model and healthy balance sheet, we remain confident in our ability to sustain our growth trajectory. We thank you all for your time today and for your continued trust and support in Cantable Retail India Limited.
We look forward to engaging with you in the upcoming quarter. We hope we have been able to answer your queries. Please feel free to reach out to our CFO or IR team for any clarifications or feedback. Thank you all.
operator
Thank you sir. On behalf of Canterbill Retail India Limited that concludes this conference call. Thank you for joining us and you may now disconnect your lines.
Shivendra Nigam — Chief Financial Officer
Thank you so much sir. Thank you everyone.