Go Fashion Q4 FY25 Results: Revenue Rises while Profit Dips

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Go Fashion Q4 FY25: Revenue Up 12% to ₹176.7 Cr, Stock Surges 5%

By S Jha

Mumbai, April 30, 2025 — Go Fashion (India) Ltd., the parent company of women’s wear brand Go Colors, released its Q4 FY25 financial results, reporting a 12% year-on-year revenue increase to ₹176.7 crore, up from ₹157.6 crore in Q4 FY24.

Reacting positively to the results, Go Fashion stock sharply rose by over five per cent during Wednesday afternoon trade. The stock was trading at ₹769, with gains of over 5%.

However, net profit fell 12.1% to ₹13 crore from ₹14.8 crore, reflecting a challenging retail environment. Experts praised operational resilience while flagging concerns over profitability and same-store sales growth (SSSG).

Market commentator Investing India in a post on X said: “Go Fashion Q4 FY25: Revenue up 12% to ₹176.7 Cr, EBITDA up 12% to ₹52.2 Cr. Strong store additions (41 new EBOs in H1) and 63% gross margin show resilience in a tough market”.

The analyst emphasized the company’s expansion and margin strength, with gross margins improving to 63% from 60.7% in Q4 FY24.

However, Value Investor expressed caution, saying that “Go Fashion Q4 PAT down 12% to ₹13 Cr despite 12% revenue growth. SSSG at 0% is a red flag —discretionary spending still weak.”

Store closures and high valuations need watching, it stated, while spotlighting consumers not spending aggressively in the market.

The stagnant SSSG and the impact of subdued consumer demand remain key concerns for Go Fashions and other retail brands, noted market participants.

The results, detailed in a company filing, reflect Go Fashion’s operational efficiency, with EBITDA rising 12% to ₹52.2 crore and margins holding steady at 30%.

The company added 41 exclusive brand outlets (EBOs) in the first half of FY25, bringing its store count to 755 by September 2024, as noted by @InvestingIndia2 in a post on X.

Full-price sales accounted for 95% of H1 FY25 sales, signaling strong brand loyalty despite inflation-driven caution in discretionary spending.

However, the profit dip was attributed to muted SSSG, which remained flat at 0% in Q4 FY25, and costs from consolidating underperforming stores, as highlighted by @ValueInvestorr.

CEO Gautam Saraogi, in a January 2025 analyst call, noted that apparel retail faced a weaker-than-expected festive season, impacting demand. The company targets 120-150 new stores in FY25 but expects only low single-digit SSSG for Q4, per a JM Financial report.

Go Fashion’s stock has faced pressure, hitting a 52-week low in May 2024 after a 12% profit drop in Q4 FY24. Despite this, brokerages like Emkay Global remain optimistic, projecting a ₹1,300 target price and citing expected earnings recovery in FY25 driven by store expansion and raw material cost moderation.

The company’s focus on omnichannel strategies, leveraging online and physical retail, is seen as a growth driver, though competition from brands like H&M, Zara, and regional players remains intense.

Disclaimer: This article makes no recommendation for buy or sell of shares of any company.