Cantabil Retail Faces Financial Challenges Amidst Profit Growth and Rising Interest Costs

Cantabil Retail India, a small-cap player in the Garments & Apparels industry, has recently undergone a financial trend adjustment, reflecting a flat performance for the quarter ending September 2025. The company's financial score has seen a notable decline over the past three months, indicating challenges in its operational metrics.
On a positive note, the company's profit after tax (PAT) for the nine-month period stands at Rs 43.93 crore, showcasing a growth rate of 25.34%. This growth in profitability highlights the company's ability to generate earnings despite the broader challenges it faces.

However, the company is grappling with rising interest expenses, which have reached Rs 31.06 crore, marking a growth of 21.09%. This increase has impacted the operating profit to interest ratio, which is currently at its lowest point of 3.77 times. Such metrics suggest that while Cantabil Retail is managing to grow its profits, the burden of interest costs is becoming more pronounced.

In terms of market performance, Cantabil Retail has shown resilience over the past year, with a stock return of 10.73%, outperforming the Sensex's return of 5.34%. Over a longer horizon, the company has delivered impressive returns, particularly over the last five years, where it achieved a staggering 295.22% return compared to the Sensex's 108.58%. This performance underscores the company's potential in a competitive market landscape.