Credo Brands Marketing Ltd

Financial Performance

• Q1 FY27 revenue INR125.3 crores; gross profit INR77.2 crores; GP margin 61.6%.
• EBITDA INR26.6 crores; EBITDA margin 21.2%.
• PAT INR2.3 crores; PAT margin 1.8%.
• Revenue growth 5% YoY in Q1 FY27.
• Marketing investment 8.5% of revenue; full-year guidance 8–10%.

Operations and Store Network

• Opened 5 stores; closed 7; total stores 427.
• Premiumization across all markets; not limited to Tier 1.
• Avg revenue per EBO FY26 ~INR75 lakhs.
• This year: same-store revenue expected to grow in mid-single digits.
• Inventory policy: sharpen inventory; no larger base.

Guidance and Outlook

• Near-term demand uncertain; environment cautious amid geopolitical tensions.
• Mufti 2.0 transformation on track; long-term headroom in casual lifestyle segment.
• Two-odd years outlook: exact numbers difficult to predict; no near-term targets.
• Marketing guidance: 8–10% of revenue through FY27.

Q&A Highlights

• Renovated stores show positive signals; too early to extrapolate.
• Transformation is long-drawn; near-term numbers not expected.
• Premiumization across Tier 2/3; not limited to Tier 1.
• Investment targets both retention and new customer acquisition.
• SSS growth target: mid-single-digit for this year.
• New stores are generating good revenue; 5 opened, 7 closed; total 427.
• Inventory days: 74; expect reduction; cyclical.

Balance Sheet and Cash Flow

• No balance-sheet or liquidity metrics disclosed in this chunk.

Projects and Capex

• Capex figures not disclosed; emphasis on Mufti 2.0 transformation and store revamp.

AGM details

• 27th AGM to be held Friday, 11 September 2026, via videoconference.
• Notice and Annual Report available on company website and stock exchanges.
• e-voting window and related deadlines are provided in the notice.

Dates, access and dividend timing

• Submission of TDS exemption forms due 28 August 2026.
• Record date for final dividend: 28 August 2026.
• Cut-off date for e-voting: 4 September 2026.
• e-Voting starts 9:00 a.m. 8 September 2026.
• e-Voting ends 5:00 p.m. 10 September 2026.
• Dividend payment date from 15 September 2026.
• Tax will be withheld on dividend as per applicable rates.

Tax and compliance

• Submit requisite declarations/documents by August 28, 2026 to determine TDS rate.

AGM Details

• 27th AGM on Sep 11, 2026 at 12:30 PM IST via VC/OAVM.
• Mode: VC/OAVM; venue deemed at the registered office.
• Record date for final dividend: Aug 28, 2026.
• Remote e-voting window: Sep 8–10, 2026; cut-off Sep 4, 2026.

Resolutions

• Ordinary: adopt audited financial statements for year ended Mar 31, 2026.
• Ordinary: declare dividend of Rs 2.00 per equity share.
• Ordinary: re-appoint Mrs. Poonam Khushlani as Director (rotating).
• Special: re-appoint Kamal Khushlani as CMD for five years from Mar 8, 2027.
• Remuneration terms: fixed 1.70–3.00 crore; annual incentive 2% of PBT; promoter-director ceiling 5.0 crore or 2.5% net profits.

Voting and Results

• Voting results not provided in this filing chunk.

Dividend

• Final dividend proposed: Rs 2.00 per equity share.
• Record date for dividend: Aug 28, 2026; payment within 30 days of declaration.

Director Changes

• Mrs. Poonam Khushlani re-appointed as Director (rotating).
• Kamal Khushlani re-appointed as Chairman and Managing Director for five years from March 8, 2027.

Auditors

• Statutory Auditors: M S K C & Associates LLP; 5-year term (2024–2029).
• Secretarial Auditor: M/s Siroya and BA Associates; 5-year term (2025–2030).
• Audit fees Rs 2.70 million; other services Rs 0.05; total Rs 2.75 million.

Material Related Party Transactions

• Advisory services with Smart Global Solutions; Rs 3–4 lakh per month; 36 months; approved May 22, 2025.

Other Material Approvals

• ESOP 2020: 59,600 options exercised; 1,722,497 exercisable; 1,822,497 outstanding; price Rs 31.35.

Meeting Details

• Date: August 12, 2026; time not disclosed.
• Type: investor/analyst conference call (audio recording).

Participants

• Key company participants: not disclosed.

Purpose

• Discuss unaudited quarterly results for the quarter ended June 30, 2026.

Additional Notes

• Audio recording available on the company's website.

Q1 FY27 financial highlights

• Total revenue ₹125.3 crore in Q1 FY27, up 5% YoY.
• Gross profit ₹77.2 crore, up 5% YoY; gross margin 61.6%.
• EBITDA ₹26.6 crore; EBITDA margin 21.2% (down 460 bps YoY).
• PAT ₹2.3 crore, vs ₹6.3 crore in Q1 FY26.

Operational metrics

• Total EBOs: 427 stores as of 30 June 2026.
• Channel mix: EBO 61%; MBO 17%; LFS 5%; Online 12%; Others 5%.
• Product mix Q1 FY27: Shirts 47%; T-shirts 11%; Bottomwear 39%; Outerwear 1%; Others 4%.
• Working capital days: 176 days as of 30 June 2026.
• RoCE 12.9%; RoE 10.1% for Q1 FY27.
• Marketing spend: 8.5% of revenue.

Strategic updates

• MUFTI 2.0 transformation: premium stores opened; selective rationalisation to improve productivity.
• Digital & omnichannel: investments in Google/Meta; strengthening online-offline integration.
• D2C expansion: ongoing to deepen consumer engagement.
• Brand focus: premiumisation and enhanced customer experience.

Outlook and guidance

• Near-term demand visibility remains uneven; long-term India casual wear growth opportunity.
• MUFTI 2.0 on track for the next growth phase.

Business Overview

• Mufti is Credo's mid-to-premium menswear brand sold through multi-channel networks.
• MUFTI 2.0 targets premium stores, enhanced customer experience, and brand elevation.

Operational Highlights

• Q1 FY27 revenue ₹125.3cr; gross profit ₹77.2cr; gross margin 61.6%.
• EBITDA ₹26.6cr; margin 21.2%; PAT ₹2.3cr.
• Opened 5 new stores; closed 7 underperforming stores.
• Marketing spend 8.5% of revenue; FY27 target 8–10%.
• D2C growth; online sales up ~7% YoY.
• 5 stores opened, 7 closed; network optimization.

Financial Performance

• Total revenue ₹125.3cr; YoY +5%.
• Gross profit ₹77.2cr; gross margin 61.6%.
• EBITDA ₹26.6cr; margin 21.2%.
• PAT ₹2.3cr; margin 1.8%.
• Operating cash flow ₹132.4cr; end cash ₹52.4cr.
• Total assets ₹801.9cr; total equity ₹438.6cr; borrowings nil; lease liabilities ₹182cr.

Capital Structure & Liquidity

• Borrowings zero; lease liabilities ₹182cr; total equity ₹438.6cr.
• Cash and cash equivalents ₹52.4cr.
• Net cash from financing activities ₹-89.7cr.

Strategic Priorities & Outlook

• MUFTI 2.0 on track; premiumization and store experience.
• Increase D2C and online marketing; target 8–10% of revenue.
• Expand domestic store network; enter new cities; multi-channel growth.
• ERP Ginesys and analytics to optimize inventory and supply chain.
• Grow own website and e-commerce; integrate online-offline experiences.

Risks & Mitigation

• Soft discretionary spending may dampen near-term demand.
• Macro uncertainty and geopolitical tensions affecting consumer sentiment.
• Mitigation: premiumization, omnichannel strategy, disciplined store openings.

Governance & Leadership

• CFO Rasik Mittal oversees finance; no governance changes reported.
• Promoter and CMD Kamal Khushlani remains; no board changes disclosed.

AGM date and notice

• 27th AGM to be held on September 11, 2026 at 12:30 PM IST via VC/OAVM.
• Notice of AGM and Annual Report for FY 2025-26 to be sent electronically to members.

Dividend record date

• Record date for payment of proposed dividend of ₹2.00 per share fixed as 28 August 2026.