Vedant Fashions reported Q3 FY26 sales of INR 692 crores, with 9-month sales reaching INR 1,447 crores (5.4% growth). Management attributed a significant impact on the quarter to the fewer wedding dates in December and January, coupled with muted consumer sentiment in the middle-class segment. Despite this, the company maintained a healthy gross margin of 65.7% and is strategically focusing on premium brands like Twamev and improving retail KPIs.
Q3 FY’26 Financial Performance Overview
During the Q3 FY’26 conference call held on February 13, 2026, management confirmed sales for the quarter stood at approximately INR 692 crores. For the 9-month period ending December 31, 2025, revenue from operations was INR 1,447 crores, reflecting a growth of around 5.4%. Same-Store Sales Growth (SSSG) for the 9 months was 1.8%.
The company maintained strong profitability metrics:
- Q3 Gross Margin: Healthy at 65.7%.
- Q3 EBITDA Margin: Healthy at 44.6%.
- Q3 Profit After Tax (PAT): Stood at around INR 135 crores (27.4% PAT margin).
- 9-Month EBITDA: Stood at around INR 453 crores (44% margin).
- 9-Month PAT Margin: Reported at 25.2% (INR 261 crores).
The trailing 12-month period showed a strong cash conversion ratio of 95%.
Impact of Macro Factors and Calendar Shifts
CEO Rahul Murarka detailed that the Q3 performance was significantly impacted by the wedding calendar. Specifically:
- January: Had zero wedding dates compared to 11 dates in the previous year.
- December: Had only 3 wedding days up to the 6th, compared to a staggered 6 wedding dates until the 14th in the prior year.
Furthermore, consumer sentiment, particularly in the middle-class segment where Manyavar caters, was described as muted. While premium segments performed well, the middle-class segment showed slower growth, impacting overall figures.
Strategic Focus and Brand Performance
Management emphasized a continued focus on improving the quality of the retail business through enhanced customer experience, better merchandising, and disciplined KPI management. Key brand highlights included:
- Twamev: The premium brand performed exceptionally well, reporting 40% overall growth in Q3, with SSSG growth of 12% in Q3 and 16% YTD.
- Marketing Initiatives: Successful launches included “The Manyavar Shaadi Show” (a YouTube podcast hosted by Karan Johar) and campaigns featuring Rinku Singh, aimed at strengthening brand equity.
Retail Footprint and Expansion Strategy
The company deliberately paused aggressive store expansion this year to focus on improving the quality of the existing retail footprint and sustainability. Net addition for the quarter was approximately 5,500 square feet, largely driven by the launch of a 9,000 square feet Twamev flagship store in Mumbai.
Management is confident that store expansion will normalize in the next 2-3 quarters, projecting a return to aggressive growth from the upcoming financial year. This consolidation exercise focuses on closing smaller, underperforming stores (under 1,000 sq. ft.) while prioritizing larger flagship formats.
Competition and Margin Discussion
Regarding gross margin compression, management explained that the impact in Q3 was largely a one-time effect due to the GST rate increase from 12% to 18% on 90% of products, which was partially absorbed without increasing MRPs to maintain value proposition. Management remains confident in achieving 65%+ gross margins once the GST impact normalizes.
Management noted that while some unorganized players have entered the market, they are also witnessing significant consolidation at the industry level due to liquidity challenges, suggesting a resilient moat for Vedant Fashions in the long term.
Source: BSE
