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Gargi by P. N. Gadgil & Sons has reported a strong financial performance for FY2024–25, closing the year with a total income of ₹128.4 crore, a significant increase from ₹51.1 crore in FY24. Net profit after tax rose sharply to ₹28.8 crore, marking a 240% year-on-year growth.
The growth was driven by the company’s expanded retail presence and a strategic shift in its operating model. As of March 31, 2025, Gargi operates 33 franchised outlets, 51 Shop-in-Shop (SIS) locations, and 14 exclusive brand stores across India.
During the year, the company transitioned its SIS format from a FOCO (Franchisee Operated, Company Owned) to a FOFO (Franchisee Owned, Franchisee Operated) model. This move has enabled a more asset-light approach, improving inventory efficiency and reducing capital deployment.
Commenting on the results, Aditya Modak, Co-founder, stated:
“FY25 was a pivotal year. The transition to a FOFO model aligns with our long-term strategy and has validated our business direction. We now aim to deepen market penetration and enhance operational efficiency across our network.”
While the new FOFO structure makes direct year-over-year comparisons less meaningful, internal estimates suggest that under the previous model, Gargi would have posted ₹82.4 crore in end-customer sales and ₹23.3 crore in profit before tax.
In a forward-looking move, the Board has approved raising up to ₹15 crore through a combination of equity instruments, including QIP, rights issue, or preferential allotment, subject to necessary approvals. The proposed fundraising is intended to support future growth and expansion initiatives.
