Go Colors' Rs 16.49 cr profit gets meaningful support from other income
Standalone operating profit was Rs 60.95 cr, but depreciation and interest reduced pre-tax profit to Rs 22.03 cr.
Filed 30 Jul 2026, 13:33 IST · GOCOLORS (GOCOLORS)
Key takeaways
- Standalone operating profit of Rs 60.95 cr converted to net profit of Rs 16.49 cr after Rs 34.62 cr depreciation and Rs 12.70 cr interest.
- Other income of Rs 8.41 cr was meaningful against Rs 22.03 cr of pre-tax profit, making earnings quality an important consideration.
- Management said the store network expanded by around 11% over the last year, with further focus on Tier 2 and Tier 3 cities.
Operating profit did not fully convert into earnings
Go Colors reported standalone operating profit of Rs 60.95 cr in Q1FY27, but depreciation of Rs 34.62 cr and interest of Rs 12.70 cr materially reduced the amount reaching pre-tax profit. Other income of Rs 8.41 cr partly offset those charges. The result was net profit of Rs 16.49 cr, with EPS of Rs 3.14.
Other income is important to the profit reading
Other income of Rs 8.41 cr was a sizeable component alongside Rs 22.03 cr of pre-tax profit. That means the quarter's net profit was not generated solely by operating performance. The reported tax rate was 25.16%.
Store expansion and inventory systems remain management priorities
Management said the company added approximately 43,283 square feet to its store network over the last year, representing around 11% growth. It also said it is focused on opening additional exclusive brand outlets in Tier 2 and Tier 3 cities. The presentation said the company has implemented end-to-end inventory automation and a business-intelligence tool to improve supply assurance, while management plans to expand and upgrade the warehouse.
Q1FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹223 cr |
| Other income | ₹8 cr |
| Expenses | ₹162 cr |
| Operating profit | ₹61 cr |
| Operating margin (%) | 27.35% |
| Interest | ₹13 cr |
| Depreciation | ₹35 cr |
| Profit before tax | ₹22 cr |
| Tax | ₹6 cr |
| Net profit | ₹16 cr |
| EPS (₹) | ₹3.14 |
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Expansion
- The company added approximately 43,283 square feet to its store network over the last year, representing around 11% growth.
- The company is focused on establishing additional EBOs across Tier 2 and Tier 3 cities.
- The company plans to expand and upgrade its warehouse to optimize inventory and supply management.
New initiatives
- The company has implemented end-to-end automation in inventory operations for optimal inventory management.
- The company has implemented a business intelligence tool for inventory optimization and supply assurance at stores.
Competition
- Go Colors is described as the only branded player with meaningful scale across all major bottom-wear categories.
What to watch
- Reported store-network area growth against the approximately 43,283 square feet added over the last year.
- Whether operating profit converts into earnings after the Rs 34.62 cr depreciation and Rs 12.70 cr interest burden.
- The contribution of other income relative to the Rs 22.03 cr pre-tax profit.