Cantabil Retail leverages Tier-II demand to hit historic Q3 profit milestone

07 February 2026, Mumbai

Cantabil Retail India has redefined its growth trajectory in the mid-premium segment, reporting a record-breaking net profit of Rs 45.1 crore for Q3 FY26 - a sharp 31 per cent increase over the previous year. While the broader retail sector navigates a mixed consumption environment, Cantabil’s revenue increased by 19 per cent to Rs 264.4 crore in the December quarter. This fiscal strength is underpinned by a robust 6.3 per cent same-store sales growth (SSG) for the nine-month period, signaling that the brand’s ‘value-fashion’ proposition is resonating deeply with price-conscious yet aspirational shoppers in smaller urban hubs.

Vision 2027 and physical expansion velocity

Unlike competitors facing margin compression, Cantabil has maintained a disciplined operational efficiency, with EBITDA margins expanding to 36 per cent. The company is aggressively pursuing its ‘Vision 2027’ roadmap, which aims to cross the Rs 1,000 crore revenue mark by doubling its store network. In January 2026 alone, the firm added three new showrooms, bringing its total footprint to 651 outlets across 317 cities. Management attributes this resilience to the recent GST rate rationalization, which boosted consumer affordability, and a strategic shift toward larger store formats that enhance the customer experience while maximizing per-square-foot profitability.

Omnichannel integration as a growth catalyst

To future-proof its business model, Cantabil is integrating its physical retail strength with a digital-first approach. The firm aims for online channels to contribute 8-10 per cent of total sales by 2027, having already enabled half of its stores for omnichannel fulfillment. The recent trade thaws and consumer sentiment upswing provide a tailwind for our mid-premium offerings, stated Vijay Bansal, Chairman. With a healthy net cash balance of Rs 15 crore and a declared interim dividend of Rs 0.75 per share, the company stands out as a case study in balancing aggressive geographic expansion with shareholder value.

Established as an integrated apparel player, Cantabil designs and retails mid-premium menswear, womenswear, and accessories. The brand operates 651 stores across 317 Indian cities, focusing on Tier-II and Tier-III penetration. It targets Rs 1,000 crore revenue by FY27 with a steady 18-20 per cent annual growth rate and a high-efficiency retail model.

LATEST FASHION NEWS

Latest Publications

Image

Join Our Group

Join Our Group