Vedant Fashions Q1 FY27 Results (NSE: MANYAVAR)
Signal: Margin expansion
The read
The quarter shows a modest growth recovery with revenue up 7.18% YoY to ₹3,013.65 million and EBITDA margin expanding 126bps to 53.3%, but the quality of the improvement is mixed because gross margin compressed 176bps to 70.6% and other income of ₹296.92 million represented 28.1% of PBT.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹301.37 Cr | +7.18% | -24.54% |
| EBIT | ₹118.48 Cr | -26.55% | |
| Net profit | ₹80.61 Cr | +14.73% | |
| EPS | ₹3.32 | +14.88% | |
| EBIT margin | 53.3% |
P&L walk
Standalone revenue increased 7.18% YoY to ₹3,013.65 million, while gross margin compressed 176bps to 70.6%; EBITDA rose 9.74% to ₹1,606.80 million and PAT rose 14.73% to ₹806.11 million, with other income contributing 28.1% of PBT.
Key positives
- Revenue increased 7.18% YoY to ₹3,013.65 million after the recent Q2FY25 growth of 22.9%, indicating recovery from the weak Q1FY26 base.
- EBITDA rose 9.74% YoY to ₹1,606.80 million and EBITDA margin expanded 126bps to 53.3%; employee benefits declined 2.60% and other expenses declined 1.07% despite revenue growth.
- PAT rose 14.73% YoY to ₹806.11 million and EPS rose 14.88% to ₹3.32, with EPS tracking PAT.
Key concerns
- Gross margin compressed 176bps YoY to 70.6% as raw materials and accessories increased to 10.18% of revenue from 9.79%; revenue grew 7.18% while this input line grew 11.38%, indicating cost absorption rather than demonstrated pricing power.
- Revenue declined 24.54% QoQ to ₹3,013.65 million and PAT declined 29.48% QoQ to ₹806.11 million, so the sequential momentum remains weak.
- EBIT declined 26.55% YoY to ₹1,184.80 million despite PAT growth, reflecting the impact of other income and the non-operating nature of the bottom-line support.
Earnings quality: includes non-operating other income
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