Vedant Fashions (MANYAVAR) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 saw a 23.2% year-over-year increase in retail sales and a 17.2% rise in revenue from operations, driven by a strong wedding season and strategic marketing initiatives.

• Gross margin remained industry-leading at 66.9%, with EBITDA margin at 43.2% and PAT growing 12.4% year-over-year.

• Retail footprint expanded to 684 EBOs across 256 cities and towns, including 14 international stores, with a focus on omnichannel integration and brand campaigns.

• Expansion strategy prioritized quality over quantity, consolidating underperforming stores and measured new openings.

• Unaudited financial results for the quarter ended June 30, 2025, were approved by the Board, with no material misstatements found by auditors.

Financial highlights

• Revenue from operations for Q1 FY26 was INR 2,812 million, up from INR 2,398 million in Q1 FY25.

• Gross profit for Q1 FY26 was INR 1,881 million, with a gross margin of 66.9%.

• EBITDA for Q1 FY26 was INR 1,214 million, with an EBITDA margin of 43.2%.

• PAT for Q1 FY26 was INR 703 million, with a PAT margin of 25.0%.

• EPS for the quarter stood at INR 2.89, compared to INR 2.57 in Q1 FY25.

Outlook and guidance

• Strategic focus is on ramping up SSG and improving store quality rather than aggressive net square footage expansion.

• Gross store additions targeted at 8%-10% of last year’s base, with net expansion expected to be modest due to consolidation.

• Management expects continued growth in Mohey, Twamev, and Diwas, with Diwas’ real test in the upcoming festive season.

• Plans for further retail expansion within and outside India, emphasizing up-selling, cross-selling, and targeted marketing.

• Consumer sentiment in the mid-premium segment remains weak, with hopes for recovery in coming quarters.