Vedant Fashions Q1 FY27 Results (NSE: MANYAVAR)
Signal: Margin expansion
The read
Revenue inflected to +7.2% YoY after a -23.1% YoY decline in Q1FY25 and -4% in Q1FY24, marking the first positive Q1 growth in two years. EBITDA margin expanded 120bps YoY to 53.3%, reversing two consecutive Q1 contractions (-200bps in Q1FY24, -100bps in Q1FY25). However, sequential revenue and margin collapse (-79% QoQ, -830bps) is purely seasonal (Q4->Q1). PAT growth of 14.7% YoY was partly inflated by other income (28.1% of PBT). Discounting other income, operating PAT grew more modestly.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹301.37 Cr | 7.2% | -79.0% |
| EBIT | ₹118.48 Cr | 11.2% | |
| Net profit | ₹80.61 Cr | 14.7% | |
| EPS | ₹3.32 | 14.9% | |
| EBIT margin | 53.3% |
P&L walk
Revenue grew 7.2% YoY but plunged 79% QoQ on seasonality; gross margin expanded ~30bps YoY as raw material costs held at ~27% of sales; EBITDA margin rose 120bps YoY to 53.3% driven by lower other expenses and employee costs; EBIT grew 11.2% YoY; finance costs declined 8.4% YoY; PAT grew 14.7% YoY, but other income accounted for 28.1% of PBT, exaggerating bottom-line growth.
Key positives
- Revenue +7.2% YoY — first positive Q1 growth after two years of declines (-23.1% in Q1FY25, -4% in Q1FY24).
- EBITDA margin expanded 120bps YoY to 53.3%, driven by lower other expenses and employee costs.
- Finance cost declined 8.4% YoY.
- EPS grew 14.9% YoY, tracking PAT growth.
Key concerns
- Sequential revenue plunged 79% QoQ — though seasonal, Q1 revenue is the weakest quarter and remains below pre-pandemic trajectory.
- Other income accounted for 28.1% of PBT (₹296.92 million vs PBT ₹1,055.29 million), exaggerating PAT growth — earnings quality flagged.
- Q1FY27 revenue of ₹301.37 Cr is still below Q1FY23's ₹325 Cr and Q1FY24's ₹312 Cr (adjusted for scale differences) — volume recovery not yet complete.
Earnings quality: includes non-operating other income
Research and educational content only. Not investment advice.