Gaurik Fashions IPO

Strengths · 8

• 01Revenue from operations grew from Rs 57.98 crore in FY2023 to Rs 172.01 crore in FY2024 and Rs 220.40 crore in FY2025.
• 02EBITDA margin stayed between 25.81% and 26.14% over FY2024, FY2025 and the nine months to 31 December 2025.
• 03Profit after tax rose from Rs 0.35 crore in FY2023 to Rs 12.26 crore in FY2025, with PAT margin moving from 0.60% to 5.56%.
• 04Net worth grew from Rs 4.74 crore in FY2023 to Rs 77.62 crore at 31 December 2025, and debt to equity fell from 6.30 to 0.92 times.
• 05The company has an international brand portfolio including Skechers, Guess and Bugatti, and holds exclusive distribution rights for Sweaty Betty.
• 06The store network covers 59 stores in 14 states and union territories, and revenue is spread over Delhi, Karnataka, Uttar Pradesh, Telangana and others.
• 07Operating cash flow was positive at Rs 34.02 crore in FY2025 and Rs 11.69 crore in the nine months to 31 December 2025.
• 08ROCE was 36.08% in FY2025 and ROE was 41.35%.

Risks · 10

• 01A significant part of revenue comes from Skechers stores, so any change in that brand relationship or its market performance can hurt the company.
• 02Most revenue comes from footwear, so a shift in demand or customer taste for these products affects the business directly.
• 03Delhi alone gave 37.03% of FY2025 revenue, and the northern region gives a significant share of revenue.
• 04Total borrowings were Rs 71.19 crore at 31 December 2025 and Rs 53.54 crore at 31 March 2025, with a debt service coverage ratio of 0.17 times for the nine months.
• 05Trade receivables turnover fell from 56.01 times in FY2023 to 13.78 times in the nine months to 31 December 2025, and trade payable turnover fell from 5.44 to 1.30 times.
• 06The statutory auditor of the subsidiary Gaurik South Private Limited is currently not cooperating, which may affect financial reporting and compliance.
• 07Brand rights are non-exclusive for the retail vertical, so brand owners can appoint other partners or move to direct-to-consumer sales.
• 08The company has had past incorrect filings with the Registrar of Companies and other Companies Act non-compliances, and may face penalties.
• 09Three relatives of promoters in the promoter group have not given consent, information or confirmations needed for disclosure in the offer document.
• 10Fresh issue money of Rs 42.48 crore and Rs 21.75 crore is meant for debt repayment, and the general corporate purposes amount is not yet fixed.

Gaurik Fashions Limited is in the retail and distribution business of fashion and lifestyle brands in India. As of 31 March 2026 it ran 59 stores across 14 states and union territories. Its brands cover footwear, apparel and accessories, from mass and mid-market to luxury.

The brand portfolio includes Skechers, Guess, Bugatti and Sweaty Betty. The company holds exclusive distribution rights for Sweaty Betty. Its wholly owned subsidiary Nuvora Retail Private Limited holds retail and exclusive distribution rights for Bugatti, T.T. Bagatt and Bagatt. Another wholly owned subsidiary, Gaurik Lifestyle Private Limited, is planned to open Guess stores.

The company does not own or run any manufacturing facility. The registered office is in Delhi and the corporate office is in Bengaluru. Both, and all the retail stores, are on leased premises. There are no separate reportable business segments.

Delhi is the largest market, with 37.03% of FY2025 revenue from operations. Karnataka gave 19.38% and Uttar Pradesh 8.56% in the same year. For the nine months ended 31 December 2025, Delhi gave 38.64% and Karnataka 18.42%. The company sells mostly through physical stores and has an online channel only for Bugatti, run by its subsidiary.

The company plans to add new stores in strategic locations and to grow its digital presence through e-commerce platforms. It has agreements with Skechers, Guess, Bugatti and Sweaty Betty. The promoters are Vishnu Pillai, Rajesh Dudi, Swati Sinha and Isha Dudi.

The industry

The draft offer document relies on a CRISIL report on Indian retail. It describes retail as the final link in the supply chain, sold through physical stores, e-commerce platforms and mobile apps, and as a key part of GDP, jobs and consumer spending. The abridged prospectus does not give a market size or growth rate for the sector.

Customer concentration: The company says top-five customer disclosure is not applicable because it sells to a diversified retail customer base. Delhi gave 37.03% of FY2025 revenue.