Vedant Fashions (MANYAVAR) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 revenue was INR 4,917.09 million, with nine-month revenue at INR 10,360.52 million, reflecting 1.7% year-over-year growth; SSG for nine months stood at 1.8%.

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

• Focus remained on strengthening retail quality, selective store expansion, and rationalizing underperforming locations, with a net addition of 8,500 sq ft and a new 9,000 sq ft flagship store in Mumbai.

• Integrated marketing strategies, including digital campaigns and influencer collaborations, enhanced brand visibility and consumer engagement.

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

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%.

• Profit after tax for Q3 FY26 was INR 1,349 million; for nine months, INR 2,614.12 million.

• Cash conversion ratio for the trailing twelve months was approximately 95%.

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

• Q3 order performance was significantly impacted by a lack of wedding dates in December and January, affecting sales.

Outlook and guidance

• Management expects normalization of store expansion and improved business quality in the next 2-3 quarters.

• 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.

• Optimism for demand revival supported by government initiatives and improving macro environment.