Credo Brands Marketing (Mufti) , the company behind the popular men's casual wear brand MUFTI, has unveiled plans for expansion and growth in the coming years. The company aims to achieve a 15-18% annual growth rate, primarily driven by its strategic retail expansion across tier 2 and tier 3 cities in India.

Expansion Strategy

Credo Brands plans to open over 100 new stores in the next three years, focusing on high-potential markets and strategic locations. This expansion is part of the company's transition journey, dubbed 'MUFTI 2.0', which aims to offer consumers a premium retail experience, elevated merchandise, and stronger brand storytelling.

Financial Performance

For the quarter ended September 30, Credo Brands reported the following financial results:

Despite a year-on-year decline in revenue and profitability, the company remains optimistic about its future prospects. Kamal Khushlani, Chairman and Managing Director of Credo Brands, attributed the temporary setback to soft demand, muted footfalls, and supply chain challenges from Bangladesh, which impacted the availability of fast-moving SKUs.

Growth Initiatives

1. Premium Store Expansion: The company has opened 5 new premium flagship stores in high-potential markets during the first half of FY26.

2. Digital Push: Credo Brands is increasing its focus on digital channels, with sales through MUFTI's website more than doubling year-on-year in H1 FY26.

3. Marketing Investments: The company plans to increase its marketing investments to enhance brand visibility and strengthen consumer connect.

4. Product Mix: Credo Brands is focusing on premium casual and athleisure segments to drive growth and improve margins.

5. Omnichannel Strategy: The company is leveraging e-commerce and omnichannel integration to increase customer reach and drive sales.

Future Outlook

Looking ahead, Credo Brands expects stronger demand led by the festive and wedding seasons, as well as positive impact from recent government reforms. The company aims to achieve a 20% margin expansion through cost efficiency measures and brand premiumization.

Mr. Khushlani stated, "The company remains confident in its strategic direction and committed to its vision of becoming one of India's leading premium apparel brands."

As Credo Brands navigates through current market challenges, its focus on premium retail experiences, digital growth, and strategic expansion in tier 2-3 cities positions it for potential long-term growth in India's competitive apparel market.

Credo Brands Marketing (Mufti) , known for its men's casual wear brand Mufti, has reported a decline in its financial performance for the second quarter of the fiscal year 2025-26. The company's unaudited financial results, approved by the Board of Directors on November 7, 2025, reveal a downturn across key financial metrics.

Revenue and Profit

The company's revenue from operations decreased to ₹1,637.26 million in Q2 FY2025-26, compared to ₹1,855.70 million in the same quarter of the previous year, marking a decline of approximately 11.8%. The total income, including other income, stood at ₹1,656.37 million, down from ₹1,860.94 million year-over-year.

Profitability

Credo Brands Marketing's net profit after tax saw a significant drop, falling to ₹188.72 million from ₹264.61 million in the corresponding quarter last year, representing a decrease of about 28.7%. The profit before tax also declined to ₹252.63 million from ₹353.56 million in Q2 FY2024-25.

Operational Performance

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the quarter stood at ₹482.00 million, down from ₹577.00 million in the same period last year. Consequently, the EBITDA margin compressed to 29.44% from 31.09% year-over-year.

Financial Position

As of September 30, 2025, Credo Brands Marketing's balance sheet showed total assets of ₹7,769.90 million, with current assets accounting for ₹4,222.68 million. The company's total equity stood at ₹4,160.73 million.

Cash Flow and Liquidity

The company's cash and cash equivalents at the end of the six-month period ending September 30, 2025, were ₹216.71 million, down from ₹452.30 million at the beginning of the period. This decrease was primarily due to cash used in financing activities, which amounted to ₹532.18 million.

Summary

Credo Brands Marketing continues to operate in the men's casual wear segment, with its Q2 FY2025-26 results showing declines across revenue, profitability, and operational metrics compared to the same period in the previous year. The company's financial position and cash flow have also been impacted during this period.