Vedant Fashions (MANYAVAR) investor relations material

Executive summary

• Q3 FY26 revenue from operations was INR 4,917.09 million, with nine-month revenue of INR 10,360.52 million, reflecting 1.7% year-over-year growth and 5.4% retail sales growth for the period.

• Q3 FY26 performance was impacted by fewer wedding dates and muted consumer sentiment, resulting in a 3.8% decline in revenue and a 4.5% decline in SSSG compared to Q3 FY25.

• Premium brand Twamev delivered 40% overall growth and 12% SSG in Q3, with 16% SSG YTD, and expanded its flagship store in Mumbai.

• Focus remained on retail quality, customer experience, and brand-building initiatives, including digital campaigns and the Manyavar Shaadi Show.

• Unaudited financial results for the quarter and nine months ended December 31, 2025, were approved by the Board on February 12, 2026, with compliance confirmed by statutory auditors.

Financial highlights

• Q3 FY26 gross margin was 65.7%, EBITDA margin 44.6%, and PAT margin 27.4%; nine-month gross margin was 65.9% and PAT margin 25.2%.

• Q3 FY26 profit after tax was INR 1,349 million; nine-month PAT was INR 2,614.12 million.

• Trailing twelve-month cash conversion ratio stood at 95%.

• Gross margin compression in Q3 was attributed to a GST rate hike from 12% to 18% on 90% of products, with no full MRP pass-through.

• Basic and diluted EPS for the quarter were INR 5.55; EPS for the nine months was INR 10.75.

Outlook and guidance

• Management expects normalization of store expansion and retail area growth in the next 2-3 quarters, with a focus on larger flagship stores.

• Optimism for improved consumer sentiment and demand revival, supported by government initiatives.

• Focus on retail expansion domestically and internationally, up-selling, cross-selling, and disciplined acquisitions.

• Continued investment in brand-building and influencer-led campaigns to drive long-term growth.

• The company is monitoring the impact of new labour codes and will adjust accounting as further regulatory details emerge.