Gaurik Fashions Limited IPO

01At a glance

What the company does: operates retail stores and distribution for international footwear, apparel and accessory brands, including Skechers, Guess?, Bugatti, Sweaty Betty and Ray-Ban, with 59 stores in 14 states and union territories at 31 March 2026 (AP p.2, DRHP p.33).

Who pays it: shoppers at its stores, mostly in north India; Delhi was 38.64% of revenue in the latest period (AP p.2).

Why it is raising money: ₹294.85 million for new Skechers stores, ₹59.83 million and ₹83.40 million through subsidiaries for new Guess? and Bugatti stores, ₹424.80 million to repay the company's debt and ₹217.50 million for subsidiaries' debt, and the rest for general purposes (AP p.4, AP p.5).

How fast it has grown: revenue from ₹580 million in FY23 to ₹2,204 million in FY25, and profit from ₹3 million to ₹123 million (AP p.6).

The one thing to understand: a store operator whose business rests on other companies' brands. Skechers stores were 56.16% of revenue in the latest period and 83.03% in FY23; the arrangements are non-exclusive, and brand owners can appoint other partners or go direct to consumers (DRHP p.33, AP p.8).

02The business, in plain words

A brand-retail partner leases shop space, fits out stores to the brand's design, buys stock from the brand, and sells to shoppers. It earns the retail margin less rent, staff and interest, and depends on the brand renewing its appointment.

A shopper in a Delhi mall buys Skechers trainers → the store is run by Gaurik under an arrangement with the brand → Gaurik bought the stock, pays the mall rent and staff, and keeps the margin.

Guess? stores are run through a subsidiary, Gaurik Lifestyle, and Bugatti stores through Nuvora Retail, which also sells Bugatti online (AP p.4, AP p.8). Apart from that, the company has no online channel (AP p.8).

Earnings equation: Profit ≈ store sales × (retail margin) − rent − staff − interest. EBITDA margin was 26.14% in the latest period (AP p.6).

03Where the money comes from

Source: DRHP p.33.

Delhi, Uttar Pradesh and Haryana together were 53.73% of revenue in the latest period, and Karnataka 18.42% (AP p.2, our arithmetic). Footwear is the majority of revenue (AP p.7).

04The growth record

Source: AP p.6.

Our arithmetic: revenue grew about 95.0% a year from FY23 to FY25 and profit after tax about 493.6% a year (our arithmetic, AP p.6).

05What the growth is made of

Revenue nearly tripled in FY24, when Guess? stores were added, and grew 28.14% in FY25 (AP p.6, DRHP p.33). Bugatti revenue jumped from ₹49 million in FY25 to ₹227 million in the latest period (DRHP p.33). Profit margin widened from 0.60% in FY23 to 8.55% in the latest period (AP p.7).

06Earnings quality

The statutory auditor of a subsidiary, Gaurik South Private Limited, is not co-operating, which the company flags as a risk to its financial reporting (AP p.7). Receivable turnover fell from 32.75 times in FY25 to 13.78 in the latest period, and payables turnover from 2.30 to 1.30 (AP p.7). The abridged prospectus refers readers to risk factors on a page shown as "[●]" and "Error! Bookmark not defined." (AP p.1, AP p.7).

07The balance sheet

Source: AP p.6, AP p.7.

08What the money is for

Source: AP p.4, AP p.5.

The named objects total ₹1,080.38 million (our arithmetic).

09Who is selling

Source: AP p.1.

10Promoters

The promoters are Vishnu Pillai, Rajesh Dudi, Swati Sinha and Isha Dudi (AP p.1). Three immediate relatives of Vishnu Pillai and Swati Sinha have not given the information needed for promoter-group disclosure (AP p.7).

11Who already owns it

Source: AP p.5.

Promoters hold 63.45% (AP p.5).

12What changed just before the IPO

• Bugatti: grown fivefold in the latest period (DRHP p.33).
• Net worth: up from ₹47 million in FY23 to ₹776 million (AP p.6).
• Auditor: a subsidiary's auditor stopped co-operating (AP p.7).
• Bonus issue: ten shares for every one held, 1,86,65,980 shares allotted on 21 February 2026, the last allotment before the offer (DRHP p.89).
• Statutory auditor: the previous statutory auditor resigned on 5 October 2024 and M A P S A & Co. was appointed on 24 December 2024 to fill the casual vacancy, and again in September 2025 (DRHP p.81).
• Public company: converted from a private limited company in December 2024 (DRHP p.2).

13Capacity and expansion

59 stores at March 2026 (AP p.2). The proceeds fund new Skechers, Guess? and Bugatti stores, including initial inventory for Skechers (AP p.4). Store openings carry delay and cost-overrun risk, and some leases may need registration (AP p.7).

14Market size and industry structure

The CRISIL report cited in the offer document describes India's retail sector and its channels in general terms (AP p.3).

15Competitive position

What the document claims, and what it rests on:

• A portfolio of international brands from mass to luxury (AP p.2).
• Store operations across 14 states (AP p.2).

Against that: non-exclusive brand arrangements, dependence on one brand, and brands' option to go direct to consumers (AP p.8).

16Peers the company named

Source: DRHP p.124.

No P/E is possible for the company until a price band is set.

17Risks, in plain words

• Skechers. More than half of revenue (AP p.7, DRHP p.33).
• Footwear. The majority of revenue (AP p.7).
• North India. Most revenue (AP p.7).
• Non-exclusive rights. Brands can appoint others or go direct to consumers (AP p.8).
• Subsidiary audit. An auditor not co-operating (AP p.7).
• Compliance. Past incorrect RoC filings (AP p.7).

18Litigation and regulatory matters

Source: AP p.9.

19Related-party transactions

Not read in detail for this study.

20What the offer document does not say

In the sections read for this study, the document does not give:

• The term and renewal conditions of the Skechers arrangement, in the pages read.
• Why the subsidiary's auditor is not co-operating, in the pages read.
• Store-level sales and margins by brand.
• Several page cross-references, which are left blank or broken in the abridged prospectus.
• The price band, lot size or issue dates, which is normal at DRHP stage.

21Five questions for management

1. When does the Skechers arrangement come up for renewal, and on what terms?
2. Why is Gaurik South's auditor not co-operating, and what does it mean for the consolidated accounts?
3. How many stores does each brand account for?
4. Why did receivable turnover fall so sharply in the latest period?
5. What happens to Gaurik's stores if a brand opens its own?

2Sources and cited facts

This study was read from 2 documents the company filed. The 49 figures it cites are listed under the document each came from, with the page and the sentence as printed.