Credo Brands Marketing Limited has announced its unaudited standalone financial results for the quarter and nine months ended December 31, 2025. The company's Board of Directors approved the financial results at a meeting held on February 09, 2026, following recommendations from the Audit Committee.

Financial Performance Overview

The company reported challenging performance for Q3FY26 compared to the previous year. Total revenue declined to ₹146.1 crore from ₹155.5 crore in the corresponding quarter of the previous year, representing a decrease of 6.03%.

Nine Months Performance

For the nine months ended December 31, 2025, the company's performance showed a declining trend across key metrics compared to the same period in the previous year.

Operational Highlights

The company maintained its retail expansion with 446 stores as of December 31, 2025. The sales mix for 9M FY26 showed EBO contributing 57%, MBO 24%, LFS 5%, Online 11%, and Others 3%. Product mix remained diversified with Bottomwear leading at 40%, followed by Shirts at 35%, T-shirts at 14%, Outerwear at 8%, and Others at 3%.

Strategic Transformation and Premiumization

The company is executing its MUFTI 2.0 transformation strategy focused on premiumization of store experience and elevated merchandise. Twelve stores under the new retail identity have been opened, with plans for strategic expansion of 20 premium stores in FY26. The company is increasing focus on digital channels, leveraging platforms like Google and Meta to amplify digital brand presence and support omnichannel retail strategy.

Management Commentary

Chairman & MD Kamal Khushlani commented that Q3 FY26 was a muted quarter for the apparel industry with softer consumer sentiment and a festive season that fell short of expectations. Gross profit margins were impacted following recent GST reforms, as the company passed on tax benefits to customers for products priced below ₹2,500. The company invested approximately 5% of revenues in advertising and branding for 9M FY26 and plans to increase this to 8-10% of revenues to strengthen long-term brand equity.

Regulatory Compliance

The announcement was made in compliance with Regulations 30 and 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Company Secretary and Compliance Officer Sanjay Kumar Mutha signed the official communication to stock exchanges. The media release was made available on the company's website at www.credobrands.in .

Credo Brands Marketing Limited , the company behind the popular MUFTI brand, reported a decline in revenue for Q2 and H1 FY26, citing supply chain disruptions and muted footfalls. The company, however, remains focused on its MUFTI 2.0 transformation strategy, increasing marketing spend and opening new premium flagship stores.

Financial Performance

For the second quarter of FY26, Credo Brands Marketing reported revenue of INR 164.00 crores, down from INR 186.00 crores in Q2 FY25. The half-yearly revenue for FY26 stood at INR 284.00 crores, compared to INR 310.00 crores in H1 FY25.

Despite the revenue decline, the company maintained its EBITDA margins at approximately 28%. The gross profit margin improved by 200 basis points year-on-year to approximately 59%, driven by changes in the product mix.

Key Highlights

• Supply Chain Disruptions: The company faced temporary supply chain disruptions from Bangladesh, which delayed product availability for the quarter. These goods have been dispatched in Q3, and the associated revenue is expected to flow into the next quarter.
• Increased Marketing Spend: As part of its MUFTI 2.0 transformation strategy, the company increased its marketing spend to 5% of revenue, up from 3.5% last year.
• New Store Openings: Credo Brands opened 5 new premium flagship stores, aligning with its premiumization strategy.
• Online Sales Growth: Sales through the company's website more than doubled year-on-year in H1 FY26, reflecting stronger brand salience and an enhanced omnichannel journey.

Working Capital and Inventory Management

The company's working capital days stood at 217 days for H1 FY26, an increase attributed to current market conditions and support provided to franchisees and MBO partners due to slower stock liquidation. Management assured that receivables remain fully secured through deposits and long-standing partner relationships.

Future Outlook

Kamal Khushlani, Chairman and Managing Director, stated, "We expect to see that growth. Like even in Q3, we should be higher than last year because some of the sales moved into Q3 due to supply chain issues from Bangladesh." The company anticipates a flattish growth for the current year but expects to return to a growth trajectory in the following year.

Credo Brands Marketing remains committed to its premiumization strategy, focusing on delivering an enhanced experience at the final consumer touch point rather than simply charging more. The company expects its EBITDA to remain in the range of 27% to 30% in the coming years, as previously guided.

As the company continues to implement its MUFTI 2.0 strategy, it plans to scale marketing and digital investments to increase awareness among potential consumers. Management expressed confidence in the brand's ability to bounce back to previous levels of performance in the medium term.

Investors and analysts will be closely watching the company's performance in the coming quarters to see if these strategic changes translate into renewed growth and improved financial results.