Credo Brands Marketing LimitedRetailMUFTI
Q1 FY27 concall · earnings callCredo Brands Marketing Limited
The company reported steady but slow revenue growth while actively investing in brand transformation and retail upgrades, with management acknowledging near-term demand softness and intense competition.
Numbers
| Metric | This quarter | Change | Five-quarter trend |
|---|---|---|---|
| Revenue | ₹125.3 Cr | 5% | |
| Gross Profit | ₹77.2 Cr | 5% | |
| Gross Profit Margin | 61.6% | — | |
| EBITDA | ₹26.6 Cr | — | |
| EBITDA Margin | 21.2% | — | |
| Profit After Tax (PAT) | ₹2.3 Cr | — | |
| PAT Margin | 1.8% | — | |
| Store Count | 427 | — |
Financials
From filed quarterly results. YoY and QoQ compare each metric on the same accounting basis.
| Quarter | Revenue | Net profit (PAT) | Basic EPS |
|---|---|---|---|
| Q3 FY25 | ₹155.52 Cr+3.6% YoY-16.2% QoQ | ₹18.31 Cr+17.4% YoY-30.8% QoQ | ₹2.81+16.1% YoY-31.5% QoQ |
| Q2 FY25 | ₹185.57 Cr+12% YoY+49.8% QoQ | ₹26.46 Cr-5.4% YoY+170.8% QoQ | ₹4.10-5.7% YoY+169.7% QoQ |
| Q1 FY25 | ₹123.89 Cr— YoY-6.9% QoQ | ₹9.77 Cr— YoY+38.2% QoQ | ₹1.52— YoY+38.2% QoQ |
| Q4 FY24 | ₹133.08 Cr— YoY-11.4% QoQ | ₹7.07 Cr— YoY-54.7% QoQ | ₹1.10— YoY-54.5% QoQ |
| Q3 FY24 | ₹150.14 Cr— YoY-9.3% QoQ | ₹15.59 Cr— YoY-44.3% QoQ | ₹2.42— YoY-44.4% QoQ |
TL;DR
- Revenue grew 5% YoY to approximately INR125 crores.
- EBITDA declined to INR27 crores from INR31 crores a year ago due to higher marketing spend.
- 5 new stores were opened and 7 underperforming stores were closed, bringing the total to 427.
- Management is focused on the Mufti 2.0 transformation for long-term brand resilience, not immediate growth.
- Marketing investment was 8.5% of revenue, in line with full-year guidance of 8-10%.
Said on the call
“We are at a stage where we are transforming the brand to stay influential and relevant in the future.”
From the Q&A
| Topic | What management said |
|---|---|
| Demand and Growth Outlook | Management sees positive signals from renovated stores but says it's too early to extrapolate; they refrain from giving near-term growth numbers, stating transformation impact will be long-drawn. |
| Premiumization Strategy | Premiumization is relative and applied across all city tiers, with store upgrades tailored to local market competition and expectations. |
| Marketing Spend Effectiveness | An analyst questioned if revenue growth justified the equal increase in marketing spend; management said the 8-10% spend is for long-term brand salience and to change perception, not just for immediate sales. |
| Inventory Days | Inventory days stood at 74; CFO said reduction is the endeavor, but MD noted it's cyclical and the focus is on selling all produced inventory profitably without write-offs. |
| Market Conditions | Management stated both muted discretionary demand and intense competition are current challenges. |
| New Category Expansion | When asked about expanding beyond footwear (like into women's wear), management said they are currently focused on transforming the existing brand and not on new categories. |
Guidance
- Marketing spend to be 8% to 10% of revenue through FY27.
- Aiming to increase same-store revenue in the mid-single-digit numbers for the year.
Source
Summary written from the transcript filed by Credo Brands Marketing Limited for the call held on 12 Aug 2026; published 18 Aug 2026, 20:44 IST.
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