Baazar Style Retail’s shares recorded a gain of more than 20% on 20 February 2025. The company’s IPO was listed on the stock market on 6 September 2025. On the listing day, the company’s shares closed with a gain of 2.83%.
On 12 December 2024, the Baazar Style touched its highest level of INR 372.65, after which its shares started declining. Post-IPO, the stock fell to its lowest level of INR 181 per share.
In the past 365 days, 43 listed IPOs have been trading below their issue price. The improving condition of the company and the sharp decline in its stock price attracted investors, leading to increased demand for the company’s shares, which is considered the reason for this surge.
Baazar Style Q3 FY25 – Financial Snapshot
Baazar Style Retail’s net profit declined to INR 30.41 crore, down from INR 38.32 crore in the same period last year, this decline reflects higher operating and employee costs. However, the company’s revenue increased 23.52% Year-on-Year to INR 411.60 crore. This growth is driven by increasing demand for its value-for-money fashion offerings.
Besides the revenue jump, Baazar Style’s profit before tax (PBT) also fell 20.44% to INR 40.77 crore, compared to its Q3 FY24’s INR 51.25 crore. Total expenses also rose by 29.25% YoY to INR 3,721.2 crore, The primary reasons for the increased expenses are:
- 25.98% increase in purchase costs (INR 1,853.1 crore)
- 40.64% rise in employee benefit expenses (INR 315.71 crore)
Margins Under Pressure
EBITDA came in at INR 83.30 crore, a 9.89% increase YoY, but margins slipped to 20.2% from 22.8% a year ago. The decline underscores the impact of rising costs on profitability, despite strong top-line growth.
Stock Reaction: A Strong Rebound
Baazar Style shares fell more than 50% in two months from its allotment price, the buying momentum pushed the stock up over 20% intraday. Analysts suggest that despite the profit decline, investors are focusing on:
- Strong revenue growth
- Aggressive expansion plans
- Resilient demand in the value fashion segment
About Baazar Style Retail
Baazar Style Retail is a very popular fashion retailer in West Bengal and Odisha. The company offers budget-friendly and good-quality apparel, non-apparel, home furnishing and merchandise to its customers. Baazar Style is well-focused on cost-conscious customers and opened 15 new stores in the third quarter of FY25. The company is now operating a chain of 199 stores as of 31 December 2024. Increasing demand in the wedding season and Eid celebration will increase the company’s sales which keeps the management optimistic about Q4 FY25.
Conclusion
While rising costs impacted profitability, revenue growth and store expansion signal long-term strength. The 20% stock surge reflects investor confidence in the company’s ability to capitalize on growing demand. As Q4 unfolds, the company’s cost management and profitability trends will be key factors to watch.
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