Financial Performance Q1 FY27

Revenue:

  • Total Revenue: ₹125.3 crore (5% YoY increase from ₹119.9 crore in Q1 FY26)
  • Gross Profit: ₹77.2 crore (5% YoY increase from ₹73.8 crore)
  • Gross Margin: 61.6% (unchanged YoY)

Expenses:

  • Employee Cost: ₹9.4 crore (vs ₹8.4 crore in Q1 FY26)
  • Other Expenses: ₹41.2 crore (vs ₹34.4 crore in Q1 FY26)
  • Marketing Spend: ₹10.7 crore (8.5% of Total Revenue, vs ₹5.4 crore in Q1 FY26)

Profitability:

  • EBITDA: ₹26.6 crore (-14% YoY from ₹31.0 crore)
  • EBITDA Margin: 21.2% (vs 25.9% in Q1 FY26)
  • EBIT: ₹9.5 crore (-34% YoY from ₹14.4 crore)
  • Profit Before Tax: ₹3.2 crore (-61% YoY from ₹8.2 crore)
  • Profit After Tax: ₹2.3 crore (-63% YoY from ₹6.3 crore)
  • PAT Margin: 1.8% (vs 5.3% in Q1 FY26)
  • EPS: ₹0.35 (vs ₹0.97 in Q1 FY26)

Operational Highlights

Store Network:

  • Opened 5 new stores across leading malls and high streets
  • Closed 7 underperforming stores
  • Total touchpoints: 1,913
  • EBOs (Exclusive Brand Outlets): 427 across 231 towns & cities
  • Presence in 583 cities in India

Digital & D2C:

  • Sales from company's own website grew approximately 7% YoY
  • Customer database: Over 2.5 million customers on "Muftisphere"
  • Utilizing Google and Meta platforms for digital marketing

Supply Chain:

  • Mother warehouse: 142,700 sq. feet in Bengaluru, Karnataka
  • Network of 50 fabric and accessories suppliers
  • 50+ manufacturing partners
  • 15-member in-house design team creating over 1,400 designs annually

Strategic Initiatives (MUFTI 2.0)

The company is implementing its MUFTI 2.0 strategy focusing on:

  • Premium retail experience
  • Elevated merchandise
  • Brand storytelling
  • Premiumization of store experience
  • Reinvented brand identity

Management Commentary

Mr. Kamal Khushlani, Chairman & MD, commented on the results:

  • FY26 was a year of resilience marked by focused execution
  • Continued advancement of MUFTI 2.0 strategy in Q1 FY27
  • Marketing investment at 8.5% of revenue, in line with full-year guidance of 8-10% through FY27
  • Growing proportion directed towards digital platforms (Google and Meta)
  • Focus on improving store network quality and productivity
  • Global environment remains uncertain with geopolitical tensions
  • India's growing aspirations and casual lifestyle segment provide significant long-term opportunity

Financial Guidance

  • Marketing spend guidance: 8-10% of revenues for FY27

Historical Financial Context

FY26 Annual Performance (for reference):

  • Revenue from Operations: ₹592.1 crore
  • Gross Profit: ₹345.5 crore (58.4% margin)
  • EBITDA: ₹154.2 crore (26.0% margin)
  • PAT: ₹47.4 crore (8.0% margin)
  • EPS: ₹7.3

Balance Sheet Position (as of June 30, 2026)

The presentation includes historical balance sheet data up to March 31, 2026, but no specific June 30, 2026 balance sheet figures are provided in the Q1 update.

Technology Infrastructure

  • Using QlikSense for data analytics and management reporting
  • Evaluating artificial intelligence and machine learning based software for EBO stores
  • Entire supply chain managed on ERP Ginesys