Menswear brand The Bear House aims to grow its revenue to ₹500 crore by FY27, up from ₹270 crore in FY26. The company is shifting its business mix to favor physical retail stores over online sales to drive higher average order values. Investors may track how this aggressive store rollout and the shift toward a 60% offline retail revenue model impact the company’s current 12% EBITDA margins.
Detailed Coverage
Bengaluru-based menswear brand The Bear House is pursuing an aggressive growth strategy, setting a revenue target of ₹500 crore for the fiscal year 2027. This projection follows a reported revenue of ₹270 crore in FY26, during which the company maintained an EBITDA margin of 12%. The leadership team has indicated that the business has remained profitable throughout this expansion phase, which remains a core focus as the brand scales its operations.
Strategic Pivot to Physical Retail
The company is currently undergoing a structural shift in its sales model. Historically, The Bear House has relied on a split of 60% online and 40% offline revenue. The management now aims to invert these figures, targeting 60% of revenue from offline retail and 40% from online channels. This decision is based on management observations that Indian consumers prefer the tactile experience of trying on apparel in-store, which often leads to higher spending.
The offline strategy is already yielding higher customer spending compared to digital channels. While the average order value for online purchases sits between ₹1,500 and ₹1,600, physical stores are reporting an average order value between ₹5,000 and ₹5,500. This increase is attributed to in-store customers typically purchasing full outfits rather than single items, effectively increasing the basket size.
Scaling Store Footprint
To support this retail-led growth, The Bear House is expanding its physical presence across India. The brand currently operates 25 exclusive brand outlets and over 550 shop-in-shop locations within multi-brand retail environments. The company has already signed leases for 32 new stores, with 13 to 14 locations currently in the fit-out stage. The expansion strategy focuses on metros, Tier-I cities, and state capitals to build a broader national footprint. International efforts are also progressing, with two stores already operational in Dubai and Abu Dhabi.
Operational Considerations for Investors
While the company is moving toward a more retail-heavy model, the transition involves significant capital spending on store leases, fit-outs, and inventory management. The ability to maintain the current 12% EBITDA margin while scaling the physical store count will be a key indicator of operational efficiency. As the brand competes in the crowded Indian premium and mid-premium menswear market, its performance will likely be tested by its ability to manage rising rental costs and store-level productivity.
Looking beyond the near-term FY27 targets, the company has stated a long-term goal of reaching ₹2,000 crore in revenue within the next five years. Future updates to monitor include the pace of store openings, the actual conversion of online-to-offline sales, and the company's ability to maintain profitability as it increases its reliance on high-overhead physical retail spaces.