02 January 2025, Mumbai
The Souled Store has demonstrated significant financial resilience in FY ’25, reporting a 37 per cent growth in operating revenue to reach Rs 492 crore. This momentum, while slightly moderated from the 50 per cent growth seen in the previous fiscal cycle, reflects a deliberate strategic shift toward an omni-channel ecosystem. Product sales via digital platforms and a rapidly expanding physical network now constitute 98.5 per cent of total income. The brand’s ability to sustain top-line expansion amidst a volatile apparel market is largely attributed to its aggressive brick-and-mortar rollout, which has seen its footprint grow to over 50 stores nationwide.
Capital Intensity and Profitability Dynamics
While the revenue trajectory remains sharp, the cost of scaling has impacted short-term earnings. Net profit for the period adjusted to Rs 11 crore, down from Rs 17.67 crore in FY ’24, primarily due to the non-recurrence of a significant Rs 7.6 crore tax credit. However, core operational performance remains healthy; profit before tax actually rose by 26 per cent to Rs 12.8 crore. Marketing expenditure reached Rs 57 crore as the brand deepened its presence in Tier-II cities, while procurement costs climbed 40.8 per cent to Rs 210 crore to support a diversifying portfolio that now includes footwear and lifestyle collectibles.
The 2026 expansion roadmap
Looking ahead, the Mumbai-based retailer is positioned for a high-volume transition. The company has articulated a target of 200 standalone stores by December 2026, aiming to leverage larger flagship formats in metros and entry-level outlets in student hubs like Pune’s Baner. This physical expansion is synchronized with a projected revenue target of Rs 1,500 crore over the next three years. As domestic competition intensifies from "ultra-fast" digital rivals and traditional apparel incumbents, The Souled Store is banking on its library of 200+ official licenses—including Marvel and Naruto—to maintain a high-margin, price-inelastic customer base.
Founded in 2013, The Souled Store specializes in licensed pop-culture apparel and lifestyle merchandise for the 18–32 demographic. With a dominant online presence and 50+ stores, it plans to reach 200 outlets by 2026. Despite recent profit moderation due to tax adjustments, the brand maintains a robust 9.7% EBITDA margin.
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