India · Delayed Price · Currency is INR Vedant Fashions Earnings Call Transcripts
Fiscal Year 2026
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Q4 FY26 saw 8.7% revenue growth and strong margins, with FY26 retail sales surpassing INR 2,000 crore. Strategic focus on SSG, quality store expansion, and robust marketing drove performance, while GST changes impacted margins. AI initiatives and disciplined capital allocation support future growth.
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Q3 FY26 saw modest revenue growth and strong margins, but performance was impacted by GST hikes and a weak wedding calendar. Premium brands outperformed, while mid-premium segments faced muted demand. Store expansion is set to resume after ongoing consolidation.
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Q2 FY26 sales grew 4.6% year-over-year, with H1 up 13.8%, despite a GST-driven operational disruption. Gross margin for H1 was 66.1%, EBITDA margin 43%, and PAT margin 23.2%. Management remains optimistic for H2, focusing on growth and store quality.
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Q1 FY26 delivered strong revenue and SSG growth driven by a rebound in the wedding season, strategic marketing, and improved store quality. Margins remained robust despite higher marketing costs, while Mohey, Twamev, and Diwas brands showed positive momentum.
Fiscal Year 2025
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Retail and revenue growth remained modest in FY25 due to weak consumer sentiment and negligible wedding days in Q1, but strong margins and targeted marketing supported resilience. Mohey and Divas brands drove diversification, while store expansion focused on quality and consolidation.
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Revenue grew 9% year-over-year in Q3, with strong performance from Mohey and Twamev, and robust online growth. Macro headwinds and rental inflation impacted expansion, but Tier 2/3 cities outperformed metros. AP & Telangana remained weak, while marketing and digital initiatives drove brand visibility.
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Q2 FY25 saw 24% sales growth and strong margins, with business normalizing after a weak Q1. New brands and campaigns drove momentum, and tier two/three markets rebounded. Store consolidation is largely complete, and festive/wedding seasons are expected to sustain growth.
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Q1 FY25 saw a sharp sales decline due to negligible wedding dates, but margins and profitability remained strong. Store expansion is deferred to H2, with new brand launches and positive trends in Tier 2/3 cities expected to drive recovery.