Vedant Fashions (MANYAVAR) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 sales grew 4.6% year-over-year, with H1 FY26 sales up 13.8% year-over-year, and revenue from operations in H1 FY26 at INR 5,443 million.

• Operations were impacted by a GST rate change, causing a 15–20 day dispatch disruption in Q2 and requiring extensive barcode and system updates.

• The company maintains a dominant position in the Indian wedding and celebration wear market, with a diversified brand portfolio and pan-India presence.

• Strategic focus on customer experience, retail training, data-driven merchandising, and omnichannel integration drove consistent retail performance.

• Unaudited financial results for the quarter and half-year ended September 30, 2025, were approved by the Board on October 30, 2025.

Financial highlights

• Q2 FY26 revenue from operations was INR 2,632 million, with net profit at INR 702.57 million and EPS at INR 2.89.

• H1 FY26 revenue from operations was INR 5,443 million, up 7.2% year-over-year; PAT stood at INR 1,263 million.

• H1 FY26 gross margin was 66.1%, EBITDA margin 43%, and PAT margin 23.2%.

• SSG for H1 FY26 was 8.2% year-over-year; Q2 FY26 SSG was -2.0% year-over-year.

• Cash conversion ratio for the trailing 12 months was 79%.

Outlook and guidance

• Management expects H2 to be the larger half of the year, with all strategic efforts focused on driving growth.

• Growth strategy focuses on retail expansion in India and abroad, up-selling, cross-selling, and targeted marketing.

• No additional CapEx is planned beyond the INR 11 crore spent on flagship COCO store experiments in Bangalore.

• Long-term SSG target is mid-to-high single digits (8–9%), with store rationalization expected to complete in 6–7 months.

• The company continues to focus on branded fashion apparel and accessories, with ongoing integration of the recently amalgamated subsidiary.