Vedant Fashions (MANYAVAR) Q3 25/26 earnings summary

Executive summary

• Revenue for Q3 FY26 was INR 4,917.09 million, with nine-month revenue at INR 10,360.52 million, reflecting a 1.7% year-over-year increase.

• Retail sales grew 5.4% year-over-year for the nine months ended December 2025, with SSG/SSSG at 1.8%.

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

• Premium brand Twamev saw 40% growth and 12% SSG in Q3, while mid-premium segments faced muted demand.

• 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% and EBITDA margin was 44.6%; nine-month gross margin was 65.9% and EBITDA margin 43.8%.

• PAT for Q3 FY26 was INR 1,337.98 million; nine-month PAT was INR 2,614.12 million with a PAT margin of 25.2%.

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

• Gross margin compression in Q3 attributed to 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 nine months was INR 10.75.

Outlook and guidance

• Store expansion expected to normalize in the next 2-3 quarters, with focus on larger formats and international growth.

• Continued investment in brand-building, influencer-led campaigns, and disciplined acquisitions.

• Management expects gross margins to normalize above 65% in coming periods.

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

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