Credo Brands Marketing announces Q2 & H1 FY26 financial and business performance
Credo Brands (MUFTI) reported decreased revenue and PAT for Q2 & H1 FY26 due to temporary supply chain issues. Gross margins improved, digital sales doubled, and company is focused on premiumization and digital expansion for future growth.
The announcement contains detailed financial results for a quarter and half-year, along with significant operational highlights, strategic business updates (premiumization, digital focus), and forward-looking commentary from the Chairman & MD. These elements are crucial for investors to assess the company's current performance and future direction, making it a high-impact announcement.
The financial results show a decline in revenue and PAT for Q2 and H1 FY26 compared to the previous year, which is a negative indicator. However, gross margins improved, digital sales doubled, and management attributes the revenue decline to temporary supply chain disruptions with recovery expected. The company's strategic initiatives for premiumization and digital expansion, along with an optimistic outlook for festive demand and government reforms, balance the current financial performance, leading to a neutral sentiment with positive future prospects.
* Credo Brands Marketing Limited (MUFTI) announced its Unaudited Financial Results for the Quarter and Half Year ended 30th September 2025. * For Q2 FY26, Total Revenue stood at ₹163.7 crore, down from ₹185.6 crore in Q2 FY25. Profit After Tax (PAT) was ₹18.8 crore, compared to ₹26.5 crore in the prior year. * For H1 FY26, Total Revenue was ₹283.6 crore, a decrease from ₹309.5 crore in H1 FY25. PAT for H1 FY26 was ₹25.1 crore, down from ₹36.2 crore in H1 FY25. * Gross Margin improved to 59.0% for H1 FY26 from 56.5% in H1 FY25, primarily driven by a change in product mix. * Operational highlights as of 30th September 2025 include 443 Exclusive Brand Outlets (EBOs). Sales Mix for H1 FY26 was EBO: 55%, MBO: 25%, LFS: 6%, Online: 11%, Others: 3%. Product Mix was Shirts: 39%, T-shirts: 15%, Bottomwear: 43%, Others: 3%. * Working Capital Days stood at 217 days, RoCE at 16.0%, and RoE at 14.5% for H1 FY26. * The company is transitioning into premiumization with 5 new premium flagship stores opened in H1 FY26 and 20 more planned for FY26, with a robust pipeline for FY27. Digital sales through MUFTI's website more than doubled year-on-year in H1 FY26. * Mr. Kamal Khushlani, Chairman & MD, stated that the decline in revenue was largely due to a temporary supply chain disruption from Bangladesh, which delayed product availability for the quarter, with these goods expected to be dispatched in Q3. He anticipates stronger demand led by festive and wedding seasons, positive impact from government reforms, and plans to deepen digital presence to scale the D2C business.
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Credo Brands Marketing Limited filed this with the NSE as a statutory disclosure, categorised under quarterly results. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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