Downgrades

Go Fashion reported a broadly stable performance for Q2FY26 with an improved channel mix, supported by stronger LFS traction (26.8% vs. 23.5% YoY) and steady EBO momentum.

Quarterly Update Q1FY26

Kalyan Jewellers’ (KALYANKJ) consolidated revenue grew 31% YoY to INR72.7b (in line). The Indian business achieved 31% YoY revenue growth, driven by store additions (added net nine Kalyan Indian stores and eight
Candere stores) and 18% SSSG (20% in South, 16% in non-South).

VIP's Q1FY26 performance was below our expectations on all fronts. Revenue declined 12% YoY to Rs5.6bn, due to 8% YoY drop in volumes and 4% YoY decrease in NSR. This is due to sudden drop in secondary sales in E-com and intense price competition. Gross margin expanded by 69bps YoY to 45.0%. Despite this, EBITDA margins contracted 330bps YoY to 4.4%, dragged by inventory provision of Rs 150mn for slow moving SL. Adj. net loss stood at Rs150mn. Management refrained from articulating a forward strategy, citing the ongoing promoter-level exchange control situation as a limiting factor during this transition phase. We cut our FY26...

Raymond Lifestyle (RLL) posted a 17% YoY revenue growth (5% beat), albeit on a low base. Growth was led by textile & apparel, though garmenting faced headwinds due to uncertainty around the US tariffs.

Titan Company (TTAN) posted consolidated sales growth of 25% YoY in 1QFY26. Standalone jewelry sales (excl. bullion) rose 17% YoY, driven by an increase in ticket size (16% YoY) due to rising gold prices.

In 1QFY26, Page Industries (PAGE) reported weaker revenue growth of 3% YoY, with volume growth of 2% (est. 9%; 8.5% in 4QFY25) to 58.6m units.

Go Fashion had a muted start to FY26 with SSSG at -2%, impacted by softer footfalls, LFS channel stress, and shipment delays from Bangladesh.

SII IN reported better than expected results with revenue/EBITDA beat of 3.8%/8.3% respectively. After multiple quarters, volume growth was at par with value growth indicating price wars have stabilized. We expect irrational pricing environment to end soon amid change of guard at top-level within peer set. This is expected to bode well for SII IN as price support to e-com channel partners would come down and tangible benefits of margin expansion resulting from improving utilization at Jaipur would be visible. Additional margin kicker...

Go Fashion (India) Ltd (GOCOLORS) reported a muted start to FY26, with revenue growing modestly at 1% YoY, impacted by a 2% SSSG decline driven by weak footfalls, supply chain disruptions due to Bangladesh
import restrictions, and a 13% YoY revenue drop in the LFS channel amid partner-related challenges.

We maintain our BUY rating on the stock, considering the attractive valuations and long-term growth prospects.

We interacted with the management of PN Gadgil (PNG) to discuss the industry outlook, growth prospects for its business, profitability outlook, and other focus areas.

TTAN saw growth moderation in Q1 with 17% growth in the jewelry business vs recent trends of ~25% growth. Also, LTL growth for TTAN in the early double digits is weaker vs 18-19% for peers.

We upgrade Go Fashion to BUY (from Add) with a TP of INR 1,200 (potential ~40% upside). Gautam exuded confidence about improving macros, store expansion plans for FY26 (after a soft FY25), plans (experiments) for portfolio diversification (women's top wear, men's products), channels (attempting MBO, franchising strategies) and international expansion (opened Dubai store recently).

We maintain our BUY rating on the stock with an upside potential of 16% from the CMP.

Arvind Fashions reported 8.5%/13% y/y revenue growth/EBITDA margin in FY25. Growth was aided by 5.5% comparable growth, network expansion (0.12m sq. ft. net addition in FY25), higher adjacent categories’ share (20%; 15% in FY24), premiumization and investments in marketing.

the cost reset cycle evident in the last quarter. Barring e-com spends, the remaining costs are transitory in nature, and we expect other expenses to decline from 31.5% of sales in FY25 to 27.1% in FY26E and further to 26.1% in...

TTAN reported a robust 4Q led by 1) value growth leg by 30-40% higher gold prices 2) 330bps margin gain in watches and 3) 20bps higher margins in jewellery enabled by operating leverage and hedging gains. 1H26 outlook remains positive given low vase due to elections and no marriage days. Higher gold prices are impacting demand however consumers are shifting to lighter jewellery and value growth remains strong. Gold on lease charges are...

We cut our EPS estimates by 6%/5% for FY26E/FY27E as we fine tune our topline growth assumptions amid persistent pricing pressure (volume growth of 22% has resulted in value growth of 15%). Safari reported better-thanexpected performance with EBITDA margin of 14.5% (PLe 12.8%) led by improvement in GM amid 1) reduction in RM prices, 2) better product & channel mix, and 3) lower discounts on e-com channel. Progress at the new site in Jaipur...