Vedant Fashions (MANYAVAR) Q4 24/25 earnings summary

Executive summary

• Retail footprint expanded by 85,000 sq ft in FY25, reaching 1.79 million sq ft across 678 stores in 256 cities globally, including 16 international stores.

• FY25 performance was impacted by subdued consumer sentiment and negligible wedding dates in Q1, but retail sales grew 2.2% year-over-year and margins remained strong.

• Comprehensive marketing initiatives, including celebrity collaborations, digital campaigns, and the launch of the Diwas D2C brand, enhanced brand visibility and consumer engagement.

• The AI-driven 'VFL Parivaar' app was launched for daily training of over 3,000 fashion advisors, resulting in improved KPIs.

• Amalgamation of Manyavar Creations Private Limited with Vedant Fashions Limited was completed, with retrospective effect from April 1, 2024.

Financial highlights

• FY25 revenue from operations was INR 13,864.83 million, up 1.4% from FY24; Q4 FY25 revenue was INR 367 crore, up 1.2% year-over-year.

• Net profit for FY25 was INR 3,884.72 million, with a PAT margin of 28.0%; Q4 PAT margin was 27.5%.

• Gross margin held at 67.2% for FY25; EBITDA margin was 46.6% (company-reported) to 48.6% (audited), both industry-leading.

• Cash flow from operations was INR 3,886.01 million, with cash and cash equivalents at year-end of INR 172.11 million.

• Basic EPS for FY25 was INR 15.99; final dividend of INR 8.00 per share recommended.

Outlook and guidance

• Confident in long-term growth, supported by robust inventory, store network, and marketing initiatives.

• Focus on quality retail area growth, like-for-like sales, and selective store expansion as retail inflation moderates.

• Board recommended a final dividend of INR 8.00 per share, reflecting confidence in future cash flows.

• Strategies in product, marketing, and operations expected to yield results from mid-Q2 FY26 onwards.

• Disciplined approach to acquisitions and significant growth potential for emerging brands.