Credo Brands Q4FY26 revenue rises 6% to INR162 crore

Credo Brands Marketing Limited reported a 6% year-on-year increase in revenue for Q4FY26, reaching INR162 crores, driven by an improved product mix and disciplined inventory management. EBITDA for the quarter remained stable at INR42 crores, with an EBITDA margin of 25.6%. Profit after tax grew by 11% to INR15.3 crores, while the PAT margin improved by 40 basis points to 9.4%. The company declared a dividend of INR2 per share.

For the full financial year FY26, revenue remained flat year-on-year at INR592 crores. The gross profit margin improved by 110 basis points to 58.4%, and the EBITDA margin stood at 26%. Return on capital employed (ROCE) was 13.8%, and return on equity (ROE) was 11.2%. Cash flow from operations for March 2026 was INR132.4 crores.

Strategic Outlook and Store Expansion

The company is undergoing a transition phase under its Mufti 2.0 strategy, focusing on premiumization and strengthening the brand's long-term foundation. During the quarter, the company opened 7 new stores and closed 24 underperforming ones. For FY27, management plans to open approximately 20 new stores and shut down around 20 underperforming stores, keeping the total store count largely flat. The capex for new format stores ranges between INR40 lakhs and INR45 lakhs.

Digital Growth and Advertising Spend

Digital channels showed significant growth, with the website business expanding approximately 75% year-on-year in FY26. Advertising spend for the quarter was approximately INR13 crores, representing 8% of revenue. Management expects advertising and branding investments to increase further, ranging between 9% to 10% of revenues in FY27, to support long-term brand visibility and consumer connect.

Financial Highlights

Metric	Q4FY26 Value	FY26 Value
Revenue	INR162 crores	INR592 crores
EBITDA	INR42 crores	INR154 crores
EBITDA Margin	25.6%	26%
PAT	INR15.3 crores	-
PAT Margin	9.4%	-
GP Margin	58.8%	58.4%

The transcript of the investor and analyst conference call held on May 22, 2026, was submitted pursuant to Regulation 30(6) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.74%	+3.26%	+2.17%	-8.69%	-43.16%	-70.79%

Credo Brands Marketing (Mufti) has released its audited standalone financial results for the quarter and year ended March 31, 2026. The company reported a net profit of ₹474.24 million for the full year, a decrease of 31% from ₹684.09 million in the previous year. Revenue from operations stood at ₹5,921.03 million, down from ₹6,181.80 million in the prior year. The board has recommended a final dividend of ₹2.00 per equity share for FY26, subject to shareholder approval.

Annual Financial Performance

The full-year results reflect a period of transition, with total income declining to ₹6,029.53 million from ₹6,242.59 million in the prior year, while total expenses rose to ₹5,377.56 million from ₹5,324.29 million. Profit before tax for the year stood at ₹638.00 million, compared to ₹918.30 million in the prior year. Total comprehensive income for the year was ₹475.64 million versus ₹686.10 million previously. Basic earnings per share fell to ₹7.26 from ₹10.54, while diluted earnings per share stood at ₹7.25 compared to ₹10.52. Paid-up equity share capital (face value ₹2 per share) was ₹130.74 million, with other equity at ₹4,255.26 million.

Particulars	FY26 (₹ Millions)	FY25 (₹ Millions)
Revenue from operations	5,921.03	6,181.80
Total income	6,029.53	6,242.59
Total expenses	5,377.56	5,324.29
Profit before tax	638.00	918.30
Net profit after tax	474.24	684.09
Total Comprehensive Income	475.64	686.10
Earnings per share – Basic (₹)	7.26	10.54
Earnings per share – Diluted (₹)	7.25	10.52
Paid-up equity share capital	130.74	130.62
Other Equity	4,255.26	3,971.16

Q4 Performance

For the quarter ended March 31, 2026, Credo Brands delivered an improvement in profitability on a year-over-year basis. Net profit for the quarter came in at ₹152.30 million, compared to ₹138.28 million in the same quarter of the previous year. Revenue from operations for the quarter stood at ₹1,623.04 million, up from ₹1,532.08 million year-on-year. Profit before tax for the quarter was ₹206.07 million versus ₹189.34 million in the corresponding prior-year period. Total comprehensive income for the quarter was ₹154.08 million compared to ₹139.75 million. EBITDA for the quarter was ₹415 million versus ₹411 million in the corresponding prior-year period, while EBITDA margin stood at 25.57% compared to 26.83% year-on-year.

Metric	Q4 FY26	Q4 FY25
Revenue from operations (₹M)	1,623.04	1,532.08
Profit before tax (₹M)	206.07	189.34
Net profit after tax (₹M)	152.30	138.28
Total Comprehensive Income (₹M)	154.08	139.75
EBITDA (₹M)	415	411
EBITDA Margin	25.57%	26.83%
EPS – Basic (₹, not annualised)	2.33	2.13
EPS – Diluted (₹, not annualised)	2.33	2.13

Strategic Update

Commenting on the performance, Mr. Kamal Khushlani, Chairman & MD, stated that FY26 was a year of transition and disciplined execution. Despite challenging market conditions, the company focused on strengthening the brand through its "MUFTI 2.0" transformation. Q4 revenues reflected stability supported by better product mix and inventory management. The company invested approximately 8% of quarterly revenues in advertising to scale visibility. Sales from the company's own website grew by approximately 74% during FY26. The total number of Exclusive Brand Outlets (EBOs) stood at 429 stores as of March 31, 2026.

Board Decisions

The board approved the audited standalone financial statements and results for the quarter and year ended March 31, 2026. Based on the recommendation of the Nomination and Remuneration Committee, the board approved the re-appointment of Mr. Kamal Khushlani as Chairman and Managing Director for a period of five years, effective from March 08, 2027, subject to shareholder approval at the forthcoming Annual General Meeting.