Cantabil targets Rs 1,000 crore revenue with 80 new stores

The Story in Brief

Cantabil Retail India is targeting Rs 1,000 crore in revenue in FY27 after reporting 13 per cent first-quarter growth to Rs 178.8 crore. EBITDA rose 21 per cent to Rs 59.4 crore, while profit after tax increased 11 per cent to Rs 16.3 crore. Same-store sales grew 4.04 per cent. The value fashion retailer plans to add 80 outlets to its 667-store network, with larger 5,000 to 8,000 sq. ft. stores planned in Tier I and Tier II cities.

About 75 per cent of revenue comes from Tier II and III markets. Cantabil plans to enter South India next financial year, while footwear revenue is expected to nearly double to Rs 35 crore. Online sales contributed 6 per cent of FY26 revenue, with the company targeting 8 per cent this year. It expects same-store sales growth of 5 to 6 per cent in FY27.

The Indian Opinion

The easy story is that more stores automatically mean a Rs 1,000 crore business. That overlooks the execution test: Cantabil must protect margins while adding outlets and moving into larger formats. The opposite claim, that smaller-city retail has little room left, also ignores that 75 per cent of sales come from Tier II and III markets. Investors should watch whether 80 new stores lift same-store growth above the 5 to 6 per cent target without weakening the 33.2 per cent EBITDA margin.

Source: retail.economictimes.indiatimes.com

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