Transcript of Earnings call held on May 22, 2026
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Credo Brands Marketing (MUFTI) reported Q4 FY26 revenue of INR 162 crores, up 6% YoY, with EBITDA flat at INR 42 crores (25.6% margin) and PAT of INR 15.3 crores (9.4% margin). For FY26, revenue was INR 592 crores (flat YoY) with EBITDA margin of 26%. The company is undergoing Mufti 2.0 transformation, opening premium format stores while closing underperforming ones - net 17 stores reduced in Q4 with 7 new premium stores opened. FY27 outlook is cautious with mid-single-digit growth expected amid geopolitical tensions and inflationary pressures. Ad spend is guided to increase to 8-10% of revenue, which will pressure EBITDA margins to around 23-24% in FY27. Online channel grew ~75% YoY and now contributes ~9% of revenue. The company maintains gross margins in 56-58% range.
The company is in a transition phase prioritizing brand building over near-term profitability. Higher ad spend guidance (8-10%) will compress FY27 margins by ~300 bps, signaling short-term earnings pressure despite strategic investments in premiumization and omnichannel.