Credo Brands Marketing LimitedUnclassifiedMUFTI
Q1 FY27 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 | INR125.3 crores | 5% | |
| Gross Profit | INR77.2 crores | 5% | |
| Gross Profit Margin | 61.6% | — | |
| EBITDA | INR26.6 crores | — | |
| EBITDA Margin | 21.2% | — | |
| Profit After Tax (PAT) | INR2.3 crores | — | |
| PAT Margin | 1.8% | — | |
| Store Count | 427 | — |
Financials
| 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.