Credo Brands Marketing registers 35.52% decline in standalone net profit in Q1, FY26
02 August 2025, Mumbai
Parent company of the men's casual wear brand Mufti, Credo Brands Marketing registered a 35.52 per cent decline in standalone net profit to Rs 6.30 crore in Q1 FY26.
The company’s revenue from operations also declined by 3.19 per cent to Rs 119.93 crore compared to the same period in the previous fiscal year. Their Profit before tax (PBT) also declined by 36.93 per cent Y-o-Y to Rs 8.23 crore. The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) contracted by 7 per cent to Rs 31 crore during the quarter. This resulted in the EBITDA margin contracting by 100 basis points to 25.9 per cent
In response to the challenging market conditions, particularly the muted consumer sentiment in Tier II and III cities, Kamal Kushlani, Chairman and Managing Director announced a strategic brand transformation. The company aims to firmly position Mufti in the premium segment of the Indian apparel market.
To achieve this, Mufti is revamping its retail footprint by opening approximately 20 new premium flagship stores in key high-potential markets during FY26, while closing underperforming locations. These new stores will feature an entirely new design and identity to enhance the customer shopping experience. This retail network rationalization will continue into FY27.
The company is also intensifying its digital marketing efforts, scaling up content creation, and increasing marketing investments. A strategic partnership with Google and Meta, initiated last year, is now reaching an ‘inflection point,’ according to Khushlani.
These investments, including higher rental costs for premium locations, are expected to increase advertising and marketing spending as a percentage of revenue to 6-7 per cent in FY26 and 8-10 per cent in FY27. While these efforts are expected to impact short-term costs, management anticipates the benefits will begin to materialize from FY28 onwards, leading to long-term brand value and enhanced profitability. As of June 30, 2025, Mufti operated a total of 444 Exclusive Brand Outlets (EBOs), adding three new stores on a net basis in Q1 FY26.
