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.

Credo Brands Marketing (Mufti) , the company behind the popular men's casual wear brand MUFTI, has reported its financial results for the first quarter, showcasing resilience in a challenging market environment. The company also announced an ambitious growth strategy focused on premiumization and digital expansion.

Q1 Financial Highlights

For the quarter ended June 30, CREDO Brands reported:

Strategic Initiatives for Growth

Mr. Kamal Khushlani, Chairman & MD of CREDO Brands Marketing Limited, outlined the company's growth strategy:

1. Premiumization: The company plans to open 20 new premium flagship stores, focusing on high-potential markets, premium malls, and high-street locations. This initiative aims to elevate brand perception and reignite consumer excitement for the MUFTI brand.

2. Digital Expansion: CREDO Brands is intensifying its digital marketing efforts through partnerships with Google and Meta. This strategy has already shown results, with sales from the company's website more than doubling year-on-year.

3. Omnichannel Approach: The company is leveraging its digital presence to support an omnichannel retail strategy, connecting with consumers across various touchpoints.

4. Increased Marketing Investment: Advertising and marketing spend as a percentage of revenue is expected to increase to 6-7% and 8-10% in subsequent years to support these initiatives.

Market Challenges and Outlook

Mr. Khushlani noted that the quarter's performance reflected continued softness in discretionary spending, particularly across Tier 2 and Tier 3 markets. However, he expressed confidence in the company's strategic direction, stating, "These investments made by us to position and strengthen the MUFTI brand within the premium fashion segment are deliberate investments to realize the full potential of the brand."

The company anticipates that the benefits of these efforts will begin materializing in future years, with advertising and marketing spends expected to stabilize by then.

Operational Highlights

• As of the quarter-end, CREDO Brands operated 444 exclusive brand outlets (EBOs) across 247 towns and cities in India
• Sales mix for the quarter:
  • EBOs: 63%
  • MBO: 17%
  • Online: 11%
  • LFS: 4%
  • Others: 5%
• Product mix for the quarter:
  • Bottomwear: 43%
  • Shirts: 41%
  • T-shirts: 12%
  • Others: 4%

CREDO Brands Marketing Limited remains committed to its vision of becoming one of India's leading premium apparel brands, balancing short-term market challenges with long-term strategic investments in brand building and customer experience.