Vedant Fashions navigates complex recovery phase as Q3, FY26 net profit declines
14 February 2026, Mumbai
Vedant Fashions (VFL) is navigating a complex recovery phase as the ethnic wear powerhouse reported a 14.6 per cent Y-o-Y decline in net profit to Rs 135 crore in Q3, FY26, primarily due to a significant reduction in auspicious wedding dates during December. Despite this seasonal contraction, the company has doubled down on its premiumization roadmap, successfully defending an industry-leading gross margin of 67.3 per cent by refusing to participate in end-of-season discounting for its flagship Manyavar brand.
Expansion beyond occasion-wear volatility
To mitigate the impact of the wedding calendar, VFL has shifted its focus toward aggressive retail diversification. The company’s global footprint has expanded to 1.79 million sq ft, supported by 664 EBOs. A significant highlight this quarter was the launch of a 9,000 sq ft flagship Twamev store in Mumbai, signaling a strategic push into the high-margin, bespoke luxury segment. This move is designed to capture the growing "luxe micro-wedding" trend, where couples are spending Rs 1.3 crore and above on curated, intimate celebrations.
Digital resilience and future outlook
While physical store throughput faced a 4.5 per cent same-store sales decline, the brand’s digital and omni-channel initiatives are showing early signs of maturity. Notably, quick commerce has emerged as a surprisingly effective channel, with platforms like Swiggy InstaMart beginning to contribute to the sales mix for smaller-ticket accessories and kurtas. Management remains optimistic for a fiscal turnaround in 2027, projecting a 9 per cent revenue CAGR as the brand leverages its debt-free balance sheet to deepen penetration in Tier-II and Tier-III cities.
Established in 2002, Vedant Fashions is the dominant player in India’s ceremonial market, owning brands like Manyavar, Mohey, and Twamev. With 16 international stores across five countries, it caters to the global Indian diaspora. VFL maintains a unique asset-light, franchisee-led model, focusing on a zero-discount policy to preserve premium brand equity and high capital efficiency.
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