Vedant Fashions Limited reported robust financial results for Q3 and 9M FY26, showcasing industry-leading margins despite a challenging Q3 December. Retail Sales grew +5.4% in 9M FY26, with Same-Store Sales Growth (SSSG) rising by +1.8%. The company maintained strong profitability with a Q3 FY26 PAT margin of 27.4% and continued strategic brand-building initiatives like the “Manyavar Shaadi Show”.
Company Performance Overview
Vedant Fashions Limited (VFL) has shared its performance update for the quarter and nine months ended December 31, 2025. The Company successfully launched its Investor Presentation covering the period, highlighting key business developments and financial metrics.
Key Performance Highlights (Q3 & 9M FY26)
The 9M FY26 period saw Retail Sales (Sale of Customers) grow by +5.4% compared to 9M FY25, while Same-Store Sales Growth (SSSG) increased by +1.8%.
Profitability remained high, with the Company reporting industry-leading Gross Margins of 65.7% in Q3 FY26 and 65.9% in 9M FY26. The Profit After Tax (PAT) margin for Q3 FY26 stood at a strong 27.4%.
The overall performance in Q3 was impacted by a significantly subdued December, attributed to fewer wedding dates and muted consumer sentiments. Nevertheless, the months of October and November recorded positive overall and Like-to-Like (L2L) sales growth driven by festive and wedding seasons.
Strategic Marketing and Expansion
VFL strengthened its brand equity by launching “The Manyavar Shaadi Show”, a 6-episode Karan Johar-hosted YouTube series focused on wedding planning and fashion.
The physical footprint expanded during the quarter, with the Company adding one flagship Twamev EBO of 9,000 sq. ft. in Mumbai.
Retail Reach Update (As of Dec YTD FY26)
The Company’s retail presence remains extensive:
- Total EBO Area: 1.79 million sq. ft. (including 38K sq. ft. from 16 International Stores across 5 Countries).
- Total EBO Count: 664 (including 16 International EBOs).
- Global Coverage: Presence in 253 cities and towns globally (including 12 International cities).
- Q3 FY26 Net Rollout: Added 5.5 k sq. ft. of EBO area.
- 9M FY26 Net Rollout: Added 2.7 k sq. ft. of EBO area.
Financial Summary (INR in mn)
Analysis of the P&L statement shows trends across the quarter and nine months compared year-over-year (YoY):
Q3 FY26 YoY Comparison:
- Revenue from Operations: Declined by -3.8% (from 5,113 to 4,917).
- Gross Profit: Declined by -6.1% (from 3,439 to 3,230).
- EBITDA: Declined by -9.6% (from 2,424 to 2,192).
- PAT: Declined by -14.6% (from 1,580 to 1,349).
9M FY26 YoY Comparison:
- Revenue from Operations: Grew by +1.7% (from 10,190 to 10,361).
- Gross Profit: Declined slightly by -0.8% (from 6,882 to 6,828).
- EBITDA: Declined by -5.3% (from 4,787 to 4,534).
- PAT: Declined by -9.1% (from 2,874 to 2,612).
Brand Initiatives and Growth Strategy
The presentation highlighted the strength of VFL’s diversified portfolio, including key brands like Manyavar, Mohey, Twamev, Diwas, and Mebaz, catering to the entire family across value segments.
Growth strategy pillars include Retail Expansion both within and outside India, Up-selling and cross-selling initiatives, Enhancement of brand appeal through targeted marketing, and leveraging the significant growth potential of emerging brands.
Several campaigns were detailed, such as the Mohey “Rang Do Campaign” celebrating colors, the Twamev “Everafter Collection Launch”, and festive activations for the “Diwas” brand.
Historical Financial Trajectory
VFL showcased a long-term growth trajectory:
- Sales of Customers increased from INR 8,362 mn in FY21 to INR 18,929 mn in FY25.
- Gross Margins have remained consistently strong, fluctuating between 66.8% and 67.4% over the last five fiscal years (FY21-FY25).
- Return on Capital Employed (RoCE Pre-Tax) peaked at 95.32% in FY23, settling at 68.69% in FY25.
Source: BSE
