Gargi by P. N. Gadgil & Sons reported a strong close to the financial year 2024–25, posting a total income of ₹128.4 crore, up from ₹51.1 crore in FY24. Net profit after tax surged to ₹28.8 crore, a sharp increase from ₹8.4 crore last year, marking a 240% year-on-year jump.

The performance comes on the back of an expanded retail footprint and an operational transition to a more scalable model. As of March 31, 2025, the company operates 33 franchised stores, 51 Shop-in-Shop (SIS) outlets, and 14 exclusive brand stores.

In a strategic move to fuel future growth, the Board of Directors has approved raising to ₹15 crore through permissible instruments, including equity shares, qualified institutional placements (QIP), preferential allotments, rights issues, or a combination thereof, subject to regulatory and shareholder approvals.

Speaking about this, Aditya Modak, co-founder of Gargi by P N Gadgil & Sons, said, “FY25 was a transformative year, not only in terms of growth but in the way we structure and scale our business. The shift to a FOFO model is a long-term strategic decision, and the results have validated our direction. We are now focused on deepening distribution and leveraging operational efficiencies across our franchise and SIS formats.”

Notably, FY25 also marked the transition of the SIS operations from a FOCO (Franchisee Operated Company Owned) model to a FOFO (Franchisee Owned Franchisee Operated) model. Under the new structure, the company now sells goods directly to the franchisee, who sells to end customers, enabling a leaner inventory and capital model.

The change in model makes current-year figures non-comparable with earlier periods. Still, an internal reconciliation exercise indicates that if the earlier FOCO model had continued, the company would have recorded ₹82.4 crore in end-customer sales and a potential profit before tax of ₹23.3 crore.