Vedant Fashions Reports Mixed H1 FY26 Performance: Revenue Up 7.2%, Q2 SSSG Negative

Vedant Fashions Limited , the company behind popular Indian wedding and celebration wear brands like Manyavar and Mohey, has reported a mixed performance for the first half of fiscal year 2026 (H1 FY26). The company saw overall growth in revenue and retail sales, but faced challenges in the second quarter.

Revenue and Retail Sales Growth

Vedant Fashions reported a 7.2% increase in revenue from operations for H1 FY26 compared to the same period last year. The company's retail sales, which represent sales to end customers, grew more robustly at 13.8% in H1 FY26. However, the growth rate moderated in Q2 FY26, with retail sales increasing by 4.6% compared to Q2 FY25.

Same-Store Sales Performance

The company's same-store sales growth (SSSG) showed divergent trends between the half-year and quarter:

H1 FY26: Positive SSSG of 8.2%
Q2 FY26: Negative SSSG of 2.0%

This indicates a slowdown in performance at existing stores during the second quarter, which may be a point of concern for investors.

Financial Highlights

Vedant Fashions maintained strong profitability metrics:

Metric	Q2 FY26	H1 FY26
Gross Margin	65.20%	66.10%
EBITDA Margin	42.90%	43.00%
PAT Margin	21.30%	23.20%

The company's ability to maintain high gross margins demonstrates its strong pricing power and efficient cost management in the competitive ethnic wear market.

Operational Expansion

As of H1 FY26, Vedant Fashions has expanded its retail footprint to:

1.79 million sq. ft. of retail space
671 Exclusive Brand Outlets (EBOs), including 16 international stores
Presence in 257 cities globally, including 12 international cities

Brand Portfolio and Marketing Initiatives

Vedant Fashions operates multiple brands catering to different segments of the wedding and celebration wear market:

Manyavar: The flagship brand for men's ethnic wear
Mohey: Focused on women's wedding and celebration wear
Twamev: Premium men's wear brand
Mebaz: Regional brand with a strong presence in South India

The company launched new wedding campaigns and collections across its brand portfolio during the period, aiming to capitalize on the festive and wedding seasons.

Outlook

While Vedant Fashions has shown overall growth in H1 FY26, the negative SSSG in Q2 and the moderation in retail sales growth rate suggest potential headwinds. The company's ability to maintain high margins and its continued expansion of retail presence may help in navigating these challenges. Investors will likely keep a close eye on how the company performs in the upcoming festive season, which is typically crucial for the ethnic wear segment.

As the market leader in branded Indian wedding and celebration wear, Vedant Fashions' performance serves as a barometer for the overall health of this segment in the retail sector. The company's future results will be important to watch, especially given the evolving consumer preferences and increasing competition in the ethnic wear market.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.71%	-2.59%	-12.24%	-16.34%	-55.42%	-34.63%

Vedant Fashions Limited , known for its flagship brand Manyavar, has reported a dip in its financial performance for the second quarter of the fiscal year 2025-26. The company, which specializes in branded fashion apparel and accessories, faced challenges in maintaining its revenue and profitability levels compared to the same period last year.

Financial Highlights

Metric	Q2 FY26	Q2 FY25	YoY Change
Revenue	₹2,631.53	₹2,679.45	-1.79%
EBITDA	₹1,103.03	₹1,219.33	-9.54%
EBITDA Margin	42.10%	45.54%	-3.44%
Net Profit	₹560.81	₹669.03	-16.18%

Key Observations

Revenue Decline

The company's revenue from operations decreased to ₹2,631.53 crore in Q2 FY26, down from ₹2,679.45 crore in the corresponding quarter of the previous year, marking a 1.79% decline.

EBITDA Performance

Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) saw a more significant drop, falling to ₹1,103.03 crore from ₹1,219.33 crore year-over-year. This represents a 9.54% decrease.

Margin Compression

The EBITDA margin contracted by 344 basis points, from 45.54% in Q2 FY25 to 42.10% in Q2 FY26, indicating increased pressure on the company's operational efficiency.

Profit Reduction

Consolidated net profit experienced the most substantial decline, dropping to ₹560.81 crore compared to ₹669.03 crore in the previous year's corresponding quarter, a decrease of 16.18%.

Industry Context

The fashion retail sector continues to evolve rapidly, with changing consumer behaviors and economic factors playing crucial roles. Vedant Fashions' performance may be influenced by these broader industry trends.

Looking Ahead

Investors and market analysts will likely be watching closely to see how Vedant Fashions addresses the decline in performance. The company's ability to adapt to market changes and leverage its brand presence in the Indian market may be critical for its future performance.