Vedant Fashions Limited reported its financial results for the second quarter and first half of FY27. The company highlighted a modest revenue growth of 0.6% year-on-year for Q2, totaling INR3,515 million, primarily impacted by a shift in the festive calendar. For the first half, revenue grew 2.1% to INR7,710 million. Management discussed strategies for future growth, focusing on brand expansion, operational efficiency, and market penetration, projecting confidence in achieving high single-digit SSG over the long term.
Vedant Fashions Q2 FY27 Earnings Conference Call Transcript
On November 12, 2026, Vedant Fashions Limited submitted a transcript of its Q2 FY27 Earnings Conference Call held on November 06, 2026. The call provided insights into the company’s financial performance for the quarter and half-year ended September 30, 2026, and discussed its forward-looking strategies.
Financial Performance Overview
Vedant Modi, Chief Revenue Officer, reported that sales for the second quarter of FY27 were INR3,515 million, reflecting a growth of approximately 0.6% compared to the same quarter in the previous year. This performance was influenced by a shift in the festive calendar, with Navratri moving from Q2 FY26 to Q3 FY27, and the latter part of Q2 FY27 being a Shradh period.
For the first half of FY27, sales reached approximately INR7,710 million, showing a growth of about 2.1% over the first half of FY26. The company emphasized a phased approach to expansion, focusing on retail quality and measured store additions, adding about 5,000 square feet of retail area during the quarter.
Rahul Murarka, Chief Financial Officer, provided further financial details. For Q2 FY27, revenue from operations was around INR269 crores, a 2.4% growth over Q2 FY26, with profit after tax at approximately INR56 crores (0.2% growth). For H1 FY27, revenue was around INR571 crores, a growth of approximately 4.8% over H1 FY26. The company maintained a strong gross margin of around 65.3%, with profit after tax for H1 at approximately INR137 crores (8.3% growth). A healthy cash conversion ratio of around 93% was reported for the trailing 12-month period ending September 2026.
Growth Strategies and Future Outlook
Management expressed confidence in the company’s positioning for sustained long-term growth. Key initiatives highlighted include:
- Brand Building: Continued focus on strengthening brand presence through campaigns like Twamev’s ‘Truly You’ campaign featuring Orry, and Manyavar’s ‘quiet luxury’ campaign. Efforts are also underway to enhance digital marketing through AI integration.
- Retail Expansion: A strategic approach to store openings, with a pipeline built for H2. The company expects mid-single-digit fleet growth this financial year, aiming for double-digit growth in store openings by FY29.
- Product Development: Refreshing the product range with trend-led designs, launching six new collections in Q3, and introducing the Manyavar Celebration Club loyalty program.
- Operational Efficiency: Strengthening retail teams through training and introducing performance-linked incentive programs.
- New Brands: Continued focus on growing newer brands like Diwas (value festive wear) and Twamev (premium occasion wear) to expand the addressable market. Diwas is projected to cross INR100 crores this year.
Regarding same-store sales growth (SSG), management indicated confidence in delivering strong results in H2, targeting high single-digit SSG as a long-term objective. They noted that the festive season, particularly Diwali, is showing positive trends.
Technology and Customer Engagement
The company is leveraging AI-led camera technology in stores to improve merchandising and sales conversions. This technology helps identify underperforming stores, leading to targeted training and operational adjustments. The goal is to improve conversion rates by 1% to 1.5% annually.
M&A Possibilities
Vedant Fashions is open to opportunities in the Indian wear segment through potential Mergers & Acquisitions (M&A), especially those that can help reduce dead stock. The company has a strong cash position and is working with external partners, while also planning to build an internal team for evaluating potential deals.
Conclusion
The management expressed optimism for the second half of FY27, attributing their confidence to ongoing efforts, consolidating competition, and a potentially improving Indian economy. They aim to achieve significant growth and value creation for stakeholders.
Source: BSE
