Management Participants

  • Mr. Vedant Modi – Chief Revenue Officer
  • Mr. Rahul Murarka – Chief Financial Officer
  • Moderator: Mr. Sameer Gupta – IIFL Capital Services Limited

Financial Performance Summary

Q2 FY27 Results (Quarter Ended September 30, 2026)

  • Revenue from operations: ₹269 crores, representing 2.4% growth over Q2 FY26
  • Profit after tax: ₹56 crores, with 0.2% growth year-over-year
  • Performance impacted by meaningful shift in festive calendar (Navratri moved from Q2 FY26 to Q3 FY27)
  • Last 10 days of quarter were Shradh period, negatively affecting business

H1 FY27 Results (Half Year Ended September 30, 2026)

  • Revenue from operations: ₹571 crores, representing 4.8% growth over H1 FY26
  • Gross margin: 65.3% (industry-leading)
  • Profit after tax: ₹137 crores, with 8.3% growth year-over-year
  • Cash conversion ratio: 93% for trailing 12-month period (computed as operating cash flow over PAT excluding finance income)

Operational and Business Updates

Retail Expansion and Store Metrics

  • Net retail area addition: Approximately 5,000 square feet during the quarter
  • EBO count: 497 exclusive brand outlets as of September 30, 2026 (compared to 508 EBOs in Q2 FY26)
  • Retail square footage: 1.67 million square feet (consistent with previous year)
  • Sales contribution: Approximately 90% from EBOs (slight reduction from 92% due to e-commerce growth)
  • Expansion strategy: Measured store additions with focus on high-potential locations and rationalization of select stores

Brand Initiatives and Marketing Campaigns

Twamev Brand Campaign:

  • Executed "Truly You" campaign featuring fashion icon Orry
  • Campaign generated viral buzz with over 700 million cumulative views
  • Reinforced brand philosophy of individuality, self-expression, and self-love
  • Effectively showcased premium wedding and occasion wear for both men and women

Manyavar Initiatives:

  • Launched "quiet luxury" campaign and "After Hours" collection
  • Continued association with Manyavar wedding ambassador
  • Signed hundreds of influencers for digital marketing
  • Implemented AI optimization for Meta and Google campaigns
  • Launched Manyavar Celebration Club - first-ever loyalty program offering 1% points to drive repeat purchases

Other Brand Activities:

  • Mohey: "Made for Momentum" campaign supported by influencer partnerships
  • Diwas: Viral collaboration with Flipkart Fashion featuring "Bua Bouncer"
  • Shift to shorter-format campaigns to improve virality and reach

Product and Operational Improvements

  • Product launches: Planning to launch six collections within Q3 FY27
  • Retail training: Enhanced in-person training on product knowledge, customer service, and KPIs
  • Performance incentives: Introduced performance-linked incentive program for store-level execution
  • AI implementation: Using AI cameras in stores to improve conversion rates through data-driven decisions
  • Inventory management: Enhanced algorithms allowing wider product range without increasing dead stock

Q&A Session Highlights

Growth Outlook and SSG Expectations

  • Management confident in H2 FY27 performance despite muted H1 results
  • Targeting high single-digit same-store growth (SSG) long-term
  • Observing "green shoots" in Diwali minus 30 days comparable period data
  • Expecting strong November, December, January performance

Expansion Strategy

  • Planned mid-single-digit store fleet addition in FY27
  • Expect double-digit store openings by FY29
  • Focus on signing build-to-suit properties for Twamev expansion (targeting 30 best stores in top 30 markets)

Margin Outlook

  • Confident in maintaining strong full-year margins despite Q2 pressure
  • Expect margin improvement in H2 FY27 to compensate for Q2 performance

Brand Performance Details

  • Mohey revenue salience: Just above double digits (approximately 10%)
  • Mohey EBO count: 6-7 exclusive stores
  • Diwas growth: Expected to cross ₹100 crores mark in FY27
  • Twamev: Performing well on all internal KPIs, requires accelerated store openings

Market and Competitive Landscape

  • Observing consolidation among regional competitors
  • Net store openings by competitors have stalled due to financial pressures
  • Local and regional players facing significant losses

Future Vision and Strategy

  • 10-year vision: To "own everything Indian wear"
  • Medium-term goal: Dominate men's celebration wear across premium, mid-premium, and value segments
  • Mohey potential: Currently under 1% market share in mid-premium women's celebration wear
  • M&A possibilities: Open to opportunities in Indian wear segment, working with external partners
  • Building internal team for M&A evaluation

Channel Performance

  • MBO channel: Achieved 100% of Q2 budget, expecting high double-digit growth
  • Strategy shift: Flexibility between SIS and MBO models to optimize business performance
  • Goal to double MBO business within two years

Financial Position Update

  • Other current assets increase: From ₹56 crores to ₹256 crores due to mutual fund redemption that settled in bank account on October 1, 2026
  • Detailed explanation provided in results page notes

Closing Remarks

Management expressed confidence in H2 FY27 performance driven by various initiatives and core business strengths. Wished participants happy Diwali and festive season.