Financial Performance Summary

Profit & Loss Statement (in ₹ Crore)

| Metric | Q1 FY27 | Q1 FY26 | YoY Change |

| Total Revenue | 125.3 | 119.9 | 5% |

| Gross Profit | 77.2 | 73.8 | 5% |

| Gross Margin | 61.6% | 61.6% | 10 bps |

| EBITDA | 26.6 | 31.0 | (14%) |

| EBITDA Margin | 21.2% | 25.9% | (460 bps) |

| PAT | 2.3 | 6.3 | (63%) |

Operational Highlights

Store Network:

  • Total number of Exclusive Brand Outlets (EBOs) as of June 30, 2026: 427 stores

Sales Channel Mix for Q1 FY27:

  • EBO: 61%
  • MBO: 17%
  • LFS: 5%
  • Online: 12%
  • Others: 5%

Product Mix for Q1 FY27:

  • Shirts: 47%
  • T-shirts: 11%
  • Bottomwear: 39%
  • Outerwear: (1%)
  • Others: 4%

Financial Metrics:

  • Working Capital Days: 176 days (as of June 30, 2026)
  • Return on Capital Employed (RoCE): 12.9% for Q1 FY27
  • Return on Equity (RoE): 10.1% for Q1 FY27
  • Marketing & Advertising Spend: 8.5% of revenue

Business Updates

MUFTI 2.0 Transformation Strategy:

  • Continued progress on premiumization journey through elevated stores, sharper merchandise, and stronger brand storytelling
  • Opened new-format premium stores in strategic locations with encouraging consumer response
  • Focused on improving retail productivity through selective store rationalization and expansion into premium retail destinations
  • Initiatives aimed at strengthening brand visibility, customer experience, and throughput per store over medium to long term

Digital & Omnichannel Capabilities:

  • Continued investments in digital marketing through Google and Meta platforms to amplify MUFTI's evolving premium identity
  • Increased focus on content-led consumer engagement, digital storytelling, and performance marketing
  • Omnichannel strategy connects online discovery with offline conversion and vice versa
  • Digital campaigns featured during quarter: PRATEIK X MUFTI, FLOW LINEN, HAVANA

Store Network Changes:

  • Opened 5 new stores across leading malls and high streets
  • Closed 7 underperforming stores
  • Focus on improving quality and productivity of network by replacing lower-productivity locations with experience-led stores

Management Commentary

Mr. Kamal Khushlani, Chairman & MD, commented:

  • FY26 was a year of resilience marked by focused execution and transformation progress
  • Q1 FY27 revenue of ₹125 crore reflects steady performance despite softness in discretionary spending
  • Gross profit grew 5% YoY to ₹77 crore with gross margin maintained at 62%
  • EBITDA decline primarily due to higher investments in brand building and marketing (8.5% of revenue)
  • Marketing investment in line with full-year guidance of 8-10% through FY27
  • Growing proportion directed toward digital platforms (Google, Meta) to strengthen visibility and consumer engagement
  • Continuing to build D2C business to get closer to consumers and their evolving preferences
  • Long-term MUFTI 2.0 transformation remains on track with focus on elevating retail experience and merchandise offering
  • Global environment remains uncertain with geopolitical tensions keeping consumers cautious
  • India's growing aspirations and casual lifestyle evolution provide significant long-term opportunity
  • Ambition to build MUFTI into one of India's most loved and enduring home-grown menswear brands

Company Background

Credo Brands Marketing Limited (MUFTI) is a prominent player in men's casual wear in India, offering wardrobe solutions for multiple occasions with products ranging from shirts, t-shirts, jeans, to chinos. The brand was launched to redefine menswear as an alternative dressing solution with creative, bold, and expressive clothing. Products are available through pan-India multichannel distribution network including EBOs, LFSs, MBOs, and online channels. The company operates an asset-light model with outsourced manufacturing operations while focusing on product design and quality control.