MUFTI - Credo Brands
📢 Recent Corporate Announcements
CARE Ratings has reaffirmed Credo Brands Marketing's long-term rating at 'CARE A+; Stable' and short-term rating at 'CARE A1+' for its ₹70 crore bank facilities. The company demonstrated stable financial performance in FY25 with Total Operating Income rising 9% YoY to ₹618.18 crore and PAT increasing to ₹68.41 crore. While the operating cycle remains high at 200 days, the company maintains a comfortable solvency profile with overall gearing improving to 0.57x. Liquidity is considered strong with projected annual cash accruals of ₹120-140 crore against debt obligations of ₹55-60 crore.
- Credit rating reaffirmed at CARE A+ (Stable) and CARE A1+ for ₹70 crore bank facilities.
- FY25 Total Operating Income grew 9% YoY to ₹618.18 crore with PBILDT margins improving to 29.7%.
- Overall gearing improved to 0.57x as of March 31, 2025, compared to 0.74x in the previous year.
- The company maintains a wide distribution network with 1,877 touchpoints including 446 Exclusive Brand Outlets (EBOs).
- Operating cycle remains elongated at 200 days, driven by high inventory and collection periods of 130 days.
Credo Brands (MUFTI) reported a challenging Q3 FY '26 with revenue falling to ₹146.1 crores and PAT dropping to ₹7 crores, primarily due to muted consumer sentiment and lower festive demand. The company is pivoting towards a premium 'MUFTI 2.0' strategy, which involves increasing marketing spend to 8-10% of revenue, potentially impacting short-term profitability. On a positive note, operational efficiency improved as working capital days reduced to 179 from 217. Management anticipates a 5-6% revenue decline for the full year but maintains a long-term focus on network quality over scale.
- Q3 Revenue declined to ₹146.1 crores from ₹156 crores YoY, with 9M revenue down to ₹430 crores.
- Quarterly PAT stood at ₹7 crores with a 4.8% margin, while EBITDA margin was 22.9%.
- Working capital cycle improved significantly to 179 days from 217 days in H1 FY '26.
- Marketing spend is planned to rise from 5% to 8-10% of revenue to support brand premiumization.
- Net store addition of 5 stores in 9M FY '26 (27 opened, 22 closed) focusing on quality locations.
Credo Brands Marketing Limited (MUFTI) has officially released the audio recording of its investor and analyst conference call held on February 10, 2026. The call focused on the company's unaudited standalone financial results for the third quarter and the nine-month period ending December 31, 2025. This disclosure is a standard compliance requirement under SEBI Listing Obligations and Disclosure Requirements. The recording provides a platform for investors to hear management's detailed commentary on operational performance and future guidance.
- Audio recording of the Q3 FY26 earnings conference call is now available on the company's website.
- The call was conducted on February 10, 2026, following the announcement of Q3 and 9M results.
- The disclosure complies with Regulation 30(6) of the SEBI LODR Regulations, 2015.
- Recording includes management's discussion on standalone financial performance for the period ended December 31, 2025.
Credo Brands Marketing (MUFTI) reported a weak set of numbers for Q3 FY26, with revenue declining 6% YoY to ₹146.1 crore. Net profit saw a sharp contraction of 61.7% to ₹7 crore, primarily driven by a 770 bps drop in EBITDA margins to 22.9%. The company faced headwinds from soft consumer sentiment during the festive season and margin pressure due to GST-related price adjustments on products below ₹2,500. Management is pivoting towards a 'MUFTI 2.0' strategy focusing on premiumization and increased marketing spend, which is expected to weigh on near-term profitability.
- Revenue for Q3 FY26 fell to ₹146.1 crore from ₹155.5 crore in the previous year.
- PAT declined significantly to ₹7.0 crore in Q3 FY26 compared to ₹18.3 crore in Q3 FY25.
- Gross Margin contracted to 56.5% from 61.9% YoY due to passing on GST benefits to customers.
- Total EBO count stood at 446 stores as of December 31, 2025, with 12 stores under the new retail identity.
- Management plans to increase advertising and branding spend to 8-10% of revenues from the current 5.2%.
Credo Brands (MUFTI) reported a weak set of numbers for Q3 FY26, with revenue declining 6% YoY to ₹146.1 crore and PAT falling sharply by 62% to ₹7.0 crore. The performance was impacted by a muted festive season and a contraction in EBITDA margins from 30.6% to 22.9%. The company is undergoing a 'MUFTI 2.0' transformation focused on premiumization, having opened 12 new-identity stores. Management expects near-term profitability to remain under pressure as they increase advertising spend to 8-10% of revenue to strengthen long-term brand equity.
- Q3 FY26 Revenue decreased 6% YoY to ₹146.1 crore; 9M FY26 Revenue down 8% to ₹429.7 crore.
- PAT for Q3 FY26 slumped 62% YoY to ₹7.0 crore, with PAT margins narrowing to 4.8% from 11.8%.
- Gross Profit margins fell to 56.5% in Q3 from 61.9% YoY, impacted by GST reforms and passing tax benefits to consumers.
- Inventory days increased to 166 days as of December 2025, up from 133 days in March 2025.
- D2C channel showed strength with own-website sales growing by approximately 87% during the first nine months of FY26.
Credo Brands Marketing Limited reported a weak set of numbers for Q3 FY26, with revenue from operations declining 6% YoY to ₹1,461.34 million. The company's net profit saw a sharp contraction of 61.7% YoY, falling to ₹70.19 million from ₹183.49 million in the previous year. Profitability was further dampened by a one-time exceptional expense of ₹13.97 million arising from the implementation of New Labour Codes. For the nine-month period ended December 2025, net profit stands at ₹321.94 million, significantly lower than the ₹545.80 million recorded in the same period last year.
- Revenue from operations decreased by 6% YoY to ₹1,461.34 million in Q3 FY26.
- Net profit after tax plummeted 61.7% YoY to ₹70.19 million.
- Recorded an exceptional item of ₹13.97 million due to past service costs under New Labour Codes.
- Quarterly Basic EPS declined to ₹1.07 compared to ₹2.81 in the same quarter last year.
- Total expenses for the nine-month period remained relatively flat at ₹3,918.40 million despite lower revenue.
Credo Brands Marketing Limited (MUFTI) has scheduled its earnings conference call for Tuesday, February 10, 2026, at 2:00 PM IST. The call will focus on the un-audited standalone financial results for the quarter and nine months ended December 31, 2025. Key management personnel, including the Chairman & Managing Director and the CFO, will be present to discuss performance and answer questions. This is a routine regulatory filing following the end of the third quarter of the fiscal year 2026.
- Earnings conference call scheduled for February 10, 2026, at 2:00 PM IST
- Discussion to cover un-audited standalone results for Q3 and 9M FY26
- Management participants include CMD Kamal Khushlani and CFO Rasik Mittal
- Global dial-in numbers provided for investors in the US, UK, Singapore, and Hong Kong
Credo Brands Marketing Limited (MUFTI) has filed its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018. The certificate, issued by the Registrar and Transfer Agent MUFG Intime India Private Limited, covers the quarter ended December 31, 2025. The filing confirms that the company has adhered to all regulatory requirements regarding the dematerialization of securities. Notably, the registrar reported that no demat requests were received from shareholders during this specific three-month period.
- Compliance certificate submitted for the quarter ended December 31, 2025
- Registrar MUFG Intime India confirmed zero demat requests were received during the quarter
- The filing ensures the company's register of members is updated as per SEBI guidelines
- Routine administrative disclosure with no impact on business fundamentals
Credo Brands Marketing Limited (MUFTI) has announced the closure of its trading window for designated persons starting January 01, 2026. This move is a standard regulatory requirement under SEBI (Prohibition of Insider Trading) Regulations, 2015, ahead of the company's financial results. The closure pertains to the unaudited financial results for the quarter and nine months ending December 31, 2025. The trading window will remain closed until 48 hours after the results are officially declared.
- Trading window closure effective from January 01, 2026
- Closure relates to financial results for the quarter and nine months ending December 31, 2025
- Window to reopen 48 hours after the announcement of unaudited financial results
- Complies with SEBI (Prohibition of Insider Trading) Regulations, 2015
Financial Performance
Revenue Growth by Segment
Standalone revenue from operations grew 8.96% YoY to INR 618.18 Cr in FY25 from INR 567.33 Cr. However, H1 FY26 revenue was INR 283.6 Cr, with Q2 FY26 revenue at INR 164 Cr, a decline of 11.8% compared to INR 186 Cr in Q2 FY25 due to supply chain disruptions.
Geographic Revenue Split
Not disclosed in available documents; however, the company operates across India through EBOs, MBOs, and LFS formats.
Profitability Margins
Gross margin improved to 59% in H1 FY26, up 200 basis points YoY from 57%. PAT for FY25 was INR 68.4 Cr (11.1% margin), up 15.6% from INR 59.1 Cr in FY24. Q2 FY26 PAT margin stood at 11.5% (INR 19 Cr).
EBITDA Margin
EBITDA margin for FY25 was 29.1% (INR 180 Cr) compared to 28.3% in FY24. H1 FY26 EBITDA margin was approximately 28% (INR 79 Cr). Management guides for a long-term EBITDA range of 27% to 30%.
Capital Expenditure
Planned capex and growth investments are funded entirely through internal accruals; the company maintains a zero-leverage policy for expansion. Specific INR values for future years are not disclosed but described as 'accelerated' for marketing.
Credit Rating & Borrowing
Liquidity is rated as 'Adequate' with a current ratio of 4.65x and quick ratio of 2.82x. Working capital utilization is low at ~15.59% of a INR 70 Cr sanctioned limit.
Operational Drivers
Raw Materials
Finished garments (shirts, denims, t-shirts) represent the primary cost; the company outsources 100% of manufacturing, focusing on design and branding.
Import Sources
Bangladesh is a key sourcing hub for product availability; disruptions there delayed Q2 FY26 dispatches.
Key Suppliers
Not disclosed in available documents; company maintains a multi-vendor outsourced manufacturing model.
Capacity Expansion
Retail footprint efficiency is measured by revenue per sq. ft., which increased to INR 11,928 in FY25 from INR 11,422 in FY24 (a 4.4% improvement).
Raw Material Costs
Gross Profit margin of 57.2% in FY25 indicates COGS is approximately 42.8% of revenue. Strategic cash payments to suppliers are used to secure better pricing and priority production slots.
Manufacturing Efficiency
Manufacturing is 100% outsourced; efficiency is driven by 'Strategic Speed' in payables (16 days) to ensure priority delivery and quality from vendors.
Logistics & Distribution
Multi-channel strategy spanning EBOs (FOFO/COCO), MBOs, and LFS to diversify operational risk and maximize reach.
Strategic Growth
Expected Growth Rate
0%
Growth Strategy
Implementation of 'MUFTI 2.0' to elevate brand identity, closing underperforming stores, and accelerating marketing investments over the next 1.5 years. The company is shifting toward a premium evolution to rekindle demand and scale its D2C digital business.
Products & Services
Men's fashion garments including shirts, denims, T-shirts, shorts, joggers, outerwear, blazers, and accessories.
Brand Portfolio
MUFTI
New Products/Services
MUFTI 2.0 premium collection; expected to drive growth after a 1.5 to 2-year transition period.
Market Expansion
Expansion of domestic store network in existing and new cities, alongside deepening digital presence for D2C growth.
Strategic Alliances
Long-standing partnerships with franchisees and MBO partners where receivables are secured through deposits.
External Factors
Industry Trends
The lifestyle retail industry is growing but faces intense competition and changing consumer preferences. MUFTI is positioning itself for 'India's premium evolution' to counter flattish growth in the mid-market segment.
Competitive Landscape
Competitors like Cantabil and Rare Rabbit are reporting 15-17% YoY growth, while MUFTI is currently in a 'flattish' transition phase.
Competitive Moat
27-year brand authenticity and a 'risk-free' supply model for partners (taking back unsold stock) creates strong channel loyalty and ensures fresh retail merchandise, which is difficult for competitors to replicate without high capital.
Macro Economic Sensitivity
Sensitive to consumer discretionary spending; recent GST reforms are expected to boost long-term consumption.
Consumer Behavior
Shift toward premium menswear and digital/D2C shopping; MUFTI is responding by upgrading store identities and increasing digital marketing.
Geopolitical Risks
Political instability in Bangladesh directly impacted the supply chain and product delivery timelines in FY26.
Regulatory & Governance
Industry Regulations
Subject to GST regulations and textile import/export norms; recent GST reforms cited as a positive long-term driver for consumption.
Environmental Compliance
Low exposure to environmental risks as the company does not own manufacturing facilities.
Taxation Policy Impact
Effective tax rate of approximately 25.5% based on FY25 tax expense of INR 23.42 Cr on PBT of INR 91.83 Cr.
Legal Contingencies
No material departures in accounting standards; no specific pending court cases or values disclosed in the provided documents.
Risk Analysis
Key Uncertainties
Success of the 'MUFTI 2.0' rebranding transition, which management expects will take 1.5 to 2 years to reflect in growth trajectory.
Geographic Concentration Risk
Not disclosed; however, the company is expanding its domestic network to mitigate regional demand fluctuations.
Third Party Dependencies
100% dependency on outsourced manufacturers; recent Bangladesh disruptions highlight vulnerability to vendor locations.
Technology Obsolescence Risk
Risk of failing to scale D2C and digital presence relative to competitors; company is currently 'deepening' digital investments to mitigate this.
Credit & Counterparty Risk
Receivable days increased to 133 in Mar-25 from 112 in Mar-24, but risk is mitigated by security deposits from franchisees and long-standing MBO relationships.