Gargi by P. N. Gadgil & Sons has closed the financial year 2024–25 on a high note, reporting a total income of Rs. 128.4 crore, more than doubling its Rs. 51.1 crore revenue in FY24. Net profit after tax surged to Rs. 28.8 crore, marking a sharp 240% year-on-year increase from Rs. 8.4 crore in the previous fiscal.

The growth comes on the back of an expanded retail footprint and a strategic shift in its operating model. As of March 31, 2025, the company has established a network of 33 franchised stores, 51 shop-in-shop (SIS) outlets, and 14 exclusive brand stores across India.

To support its next phase of growth, the Board of Directors has approved plans to raise up to Rs. 15 crore through a mix of permissible financial instruments. These could include equity shares, qualified institutional placements (QIP), preferential allotments, rights issues, or a combination thereof, subject to necessary regulatory and shareholder approvals.

FY25 also marked a significant operational transition, as the company completed the shift of its SIS business from a FOCO (Franchisee Operated Company Owned) model to a FOFO (Franchisee Owned Franchisee Operated) structure. Under this new model, franchisees purchase goods directly from the company and handle end-customer sales, resulting in a leaner and more capital-efficient business approach.

Due to the structural shift, current-year performance figures are not directly comparable with previous years. However, internal estimates suggest that under the earlier FOCO model, the company would have achieved Rs. 82.4 crore in end-customer sales and a profit before tax of Rs. 23.3 crore in FY25.