Financial Performance - Q2 FY27

  • Revenue from operations: INR189 crores (16% YoY growth from INR164 crores in Q2 FY26)
  • Gross profit: INR111 crores (19% YoY growth)
  • Gross margin: 58.6% (150 basis points improvement)
  • EBITDA: INR60 crores (24% YoY growth)
  • EBITDA margin: 31.4% (200 basis points improvement)
  • Profit after tax: INR27 crores (45% YoY growth)
  • PAT margin: 14.4% (290 basis points improvement)

Financial Performance - H1 FY27

  • Revenue from operations: INR314.6 crores (11% YoY growth from INR283.6 crores in H1 FY26)
  • Gross profit: INR188.2 crores (12% YoY growth)
  • Gross margin: 59.8% (80 basis points improvement)
  • EBITDA: INR86.1 crores (9% YoY growth)
  • EBITDA margin: 27.4% (compared to 27.9% in H1 FY26)
  • Profit after tax: INR29.6 crores (18% YoY growth)
  • PAT margin: 9.4% (50 basis points improvement)

Channel Mix Performance

Q2 FY27 Channel Mix:

  • EBOs: 47% of revenue
  • MBOs: 36% of revenue
  • Online: 12% of revenue
  • LFS: 4% of revenue
  • Others: 1% of revenue

H1 FY27 Channel Mix:

  • EBOs: 53% of revenue
  • MBOs: 29% of revenue
  • Online: 12% of revenue
  • LFS: 4% of revenue
  • Others: 2% of revenue

Operational Metrics

  • Same-store sales growth (SSSG) for Q2 FY27: 3.0%
  • Same-store sales growth (SSSG) for H1 FY27: 2.81%
  • Revenue per square foot for H1 FY27: INR5,836 (vs INR5,407 in H1 FY26)
  • EBO count as of September 30, 2026: 419 stores across 227 cities
  • Mufti 2.0 stores converted: 57 stores (including 12 renovated stores in Q2)
  • Stores opened in Q2: 14 new Mufti 2.0 format stores

Financial Position

  • ROCE (trailing 12-month): 14.6% as of September 30, 2026
  • ROE (trailing 12-month): 11.9% as of September 30, 2026
  • Debt-free status: Zero borrowings as of September 30, 2026
  • Trade receivables: INR285 crores (as of September 30, 2026)
  • Inventory: INR130 crores (includes company-owned stores and warehouse inventory)

Marketing and Brand Building

  • H1 FY27 advertising and brand building spend: 6.7% of revenue
  • Full-year FY27 guidance for marketing spend: 8-10% of revenue
  • Recent campaigns: Prateik x Mufti, Slow Living, The Detour, Loose Jean, and Corduroy
  • Digital platforms used: Google and Meta
  • No plans for brand ambassador in coming months

Strategic Initiatives - Mufti 2.0

  • Multi-year transformation program focusing on store experience, product quality, and brand positioning
  • New format premium stores with reinvented brand identity
  • Focus on content-led digital marketing and omnichannel approach
  • Target growth of 8-10% in renovated stores
  • Plan to convert 20-30 more stores to Mufti 2.0 format this year
  • Store conversion timing depends on lease terms and typically done during lean periods (Shradh period in September and post autumn/winter end-of-season sale in March)

Management Guidance

  • FY27 revenue growth guidance: 8-10% annually
  • Maintain cautious optimism given geopolitical scenario and inflationary pressures
  • Focus on improving throughput per store rather than pure store count expansion
  • Priority locations: malls, high streets, and airports

Q&A Session Highlights

  • Trade receivables of INR285 crores reflect seasonal billing pattern with goods sent to counters for new season, not indicative of 6-month credit terms
  • Inventory of INR130 crores includes goods at company-owned stores and warehouses, monitored daily
  • Marketing spend expected to increase in subsequent quarters while maintaining 8-10% of revenue guidance
  • Commission of INR18 crores in FY26 paid to franchisees who operate company-owned stores
  • Company maintains long-standing relationships with distributor partners (some over 25 years) with no material bad debt write-offs

Participants

Management:

  • Mr. Kamal Khushlani - Chairman and Managing Director
  • Mr. Rasik Mittal - Chief Financial Officer

Investor Relations Advisors: Strategic Growth Advisors