New Delhi: Fashion retailer Cantabil Retail India Ltd is eyeing on the Rs 1,000 crore revenue milestone by FY27, backed by an aggressive retail expansion strategy in tier 2 and tier 3 cities, a leaner tax regime post GST 2.0, and a tech-driven supply chain overhaul. The company, which operates over 630 stores, plans to add 1.2-1.5 lakh sq. ft. of retail space annually while maintaining its steady growth trajectory of 20% year-on-year.
In H1 FY26, Cantabil has reported a 19% rise in profit to Rs 21.4 crore and 20% growth in revenue to Rs 334.7 crore, buoyed by festive demand and strong consumer sentiment.
In an exclusive interaction with ETRetail’s Anurag Sharma, Cantabil Retail India’s CFO Shivendra Nigam spoke about the company’s future roadmap, the GST 2.0 impact, and how it’s balancing offline strength with omnichannel agility.
Edited Excerpts:
Q. How are things shaping up for Cantabil and the retail industry overall?
Nigam: Things are looking very positive now. The rollout of GST 2.0 has been a turning point for retail. The first quarter was tremendous for us, and even though Q2 is usually a lean period, we saw a noticeable spike in sales post the new tax regime. The festive momentum has been encouraging — store footfalls are up, Diwali shopping is brisk, and consumer confidence is strong.
Q. How has GST 2.0 influenced your pricing and retail strategy?
Nigam: The government’s move was clearly aimed at boosting consumption. With the GST rate dropping from 12% to 5% for products priced up to Rs 2,500, the change has been very favorable for us since our average selling price is around Rs 1,150 and about 60% of our sales fall within this range. We’ve passed the full benefit to customers, which has strengthened trust and driven volume growth. This transparency has helped us stay on track to achieve our 20% growth target for the year.
Q. What role will technology play in your next phase of growth?
Nigam: A significant one. Our new Warehouse Management System (WMS) is in the pilot stage and will help improve backend-to-store speed and inventory accuracy. With 632 stores currently and plans to double garment volume in the next five to six years, we see technology as a core enabler of operational efficiency.
Q. Is growth being driven more by volume or value?
Nigam: Both are contributing equally. We’ve maintained a 17-18% CAGR and ended last fiscal with Rs 720 crore in revenue. The goal is to touch Rs 1,000 crore by FY27, with a sustained growth rate of around 20-21% annually. Our focus is on both store expansion and increasing overall retail area by 1.2-1.5 lakh sq. ft. each year.
Q. Where is the retail expansion coming from — malls, high streets, or smaller towns?
Nigam: Cantabil has always been a high-street brand, with only about 10% of our stores in malls. The real growth is happening in Tier 2 and Tier 3 markets. We’re present across 21 states, with North and Central India as our strongholds. Madhya Pradesh is a great example — we went from zero presence to 45 stores in just a few years. We added 12 new stores this month alone, and smaller cities continue to deliver impressive traction.
Q. Are you planning to enter South India or expand overseas?
Nigam: Yes, South India is firmly on our radar, but we plan to enter once we hit the Rs 1,000 crore revenue mark. Internationally, we’re already present in Nepal with 3-4 stores and plan to expand that to 8-10. We’re also evaluating Middle Eastern markets through franchise partnerships. However, India remains our priority for now, given the vast untapped potential.
Q. How is Cantabil approaching digital and quick commerce channels?
Nigam: Over the last two and a half years, we’ve built a strong omnichannel presence — our own website, marketplaces, and quick commerce platforms like Zepto. E-commerce contributes around 6% of total revenue, and more importantly, it helps us optimize inventory and cater to fast-moving SKUs.
Q. Does the pricing strategy differ between online and offline sales?
Nigam: Slightly. Online platforms tend to offer deeper discounts to clear older inventory, which is standard across fashion retail. Fresh collections are priced uniformly across channels, ensuring consistency. While offline remains our core business and the primary brand experience hub, digital acts as a complementary channel for reach and access.
Q. How do you define Cantabil’s long-term vision?
Nigam: We’ve completed 25 years in the Indian retail industry, which is an achievement in itself. Our vision is centered on sustainable, margin-consistent growth rather than short-term spikes. With GST 2.0 boosting consumption, our digital transformation, and expansion into emerging markets, we’re confident of maintaining momentum and deepening our connect with India’s next wave of fashion consumers.
