This small-cap apparel brand eyes 62% revenue growth in 3 years: Can it rerate?

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Subscribe to enjoy similar stories. Cantabil Retail India Ltd faced setbacks after 2010 but rebounded with strategic restructuring. Now debt-free, it targets ₹1,000 crore in sales by FY27, expanding its store presence, boosting margins, and leveraging e-commerce.

The recession after the 2008 global financial crisis severely impacted businesses worldwide. Companies with minimal debt managed to survive, while others either closed or struggled to stay afloat. Cantabil Retail, a rising apparel brand, faced its own set of challenges in 2010.

While its growth trajectory had been strong until that point, the economic downturn forced the company to step back and restructure its operations. But rather than succumbing to the pressure, it used the crisis as an opportunity to rebuild. Today, the company is on a strong growth trajectory, with ambitious goals set for the future, including a revenue target of ₹1,000 crore by FY27.

Cantabil is now on the path to sustained growth. Let’s take a closer look at how this small-cap apparel company turned crisis into an opportunity and what lies ahead in its journey. In FY10, Cantabil had 411 stores and reported revenues of ₹202 crore, with an earnings before interest, taxes, depreciation, and amortization (Ebitda) of ₹31 crore and a PAT of ₹15 crore.

One of the key metrics, the average revenue per store, was ₹55 lakh, and the business was growing steadily. However, the company needed funds for further expansion. Hence, it decided to raise ₹105 crores in September 2010 through an initial public offering.