Credo Brands Marketing Limited has informed the Exchange regarding a press release dated July 31, 2025, titled "Q1 FY26 Financial & Business Performance".
MUFTI · price
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Awaiting price reaction for this filing.
Credo Brands (MUFTI) reported Q1 FY26 revenue of Rs. 119.9 crore, down 3% from Rs. 123.9 crore in Q1 FY25, with continued softness in discretionary spending in Tier 2 and Tier 3 markets. Gross margin improved sharply to 61.6% from 58.6% (+300 bps), but EBITDA fell 7% to Rs. 31 crore and profit after tax declined 36% to Rs. 6.3 crore. The company had 444 exclusive brand outlets as of June 30, 2025, with EBO channel contributing 63% of sales and own-website sales more than doubling year-on-year. Management announced a premiumisation push with 20+ premium flagship stores planned for FY26, and marketing spend set to rise to 6-7% of revenue in FY26 and 8-10% in FY27, with expected payoff from FY28 onwards.
Short-term results are weak with revenue and earnings declining, and the planned ramp-up in marketing and rental costs on premium stores will likely keep margins under pressure over the next 2-3 years. However, the margin expansion in gross profit and strong digital growth signal underlying brand strength, so investors should weigh near-term earnings drag against the long-term premium repositioning strategy.