Credo Brands Marketing Ltd (NSE:MUFTI), the owner of the MUFTI menswear brand, operates in India’s mid-premium to premium casual fashion segment, offering apparel designed for contemporary male consumers.
The company follows a multi-channel distribution strategy that includes exclusive brand outlets (EBOs), multi-brand outlets (MBOs), large format stores (LFS), and online platforms. Its scalable, asset-light model relies on outsourced manufacturing, long-term supplier partnerships and strong in-house design capabilities.
Q3 & 9M FY26 Financial Performance
- For the quarter ended December 31, 2025, revenue from operations declined 6% year-on-year to ₹146.1 crore.
- EBITDA dropped 30% to ₹33.5 crore, while profit after tax fell to ₹7.0 crore.
- Gross profit margin stood at 56.5%, affected by pricing adjustments following GST reforms and subdued festive demand.
- For the nine months ended December 2025, revenue totalled ₹429.7 crore versus ₹465.0 crore a year earlier.
- EBITDA was ₹112.6 crore with an EBITDA margin of 26.2%, while profit after tax came in at ₹32.1 crore.
- Gross profit margin remained relatively stable at 58.2%, reflecting continued cost discipline despite industry challenges.
Operational Metrics & Geographic Presence
- The company operated 446 EBOs and over 1,877 retail touchpoints across 581 cities in India. Its product mix is dominated by shirts and bottomwear, and EBOs continue to account for the majority of sales.
- MUFTI targets urban and tier-2/3 consumers seeking casual, expressive fashion in the mid-premium segment.
Operational & Business Highlights
- Credo Brands advanced its “MUFTI 2.0” transformation focused on premium store experiences, elevated merchandise and enhanced brand storytelling.
- 12 premium-format stores have already been launched, with plans for gradual expansion into high-traffic retail locations such as malls, airports and high streets.
Industry Trends & Market Environment
The apparel sector experienced a muted festive season and softer consumer sentiment during the quarter, impacting overall demand. GST-related pricing adjustments also temporarily pressured margins as tax benefits were passed on to customers in certain price segments.
Digital Strategy & Growth Initiatives
The company increased focus on its direct-to-consumer strategy, with sales from its own website growing around 87% year-on-year during the nine-month period. Investments in digital marketing and omnichannel engagement aim to attract younger consumers and strengthen brand visibility.
Management Commentary & Strategic Direction
Chairman and Managing Director Kamal Khushlani highlighted steady progress in premiumisation initiatives and noted encouraging early consumer response to new-format stores. Advertising and branding investments are expected to rise to 8–10% of revenue over time to support long-term brand equity despite near-term margin pressure.
Market Sentiment, Guidance & Outlook
While management expects demand conditions to remain cautious in the near term, the company remains confident in its long-term growth trajectory. Premiumisation, digital expansion and evolving consumer preferences in India’s apparel market are expected to support future growth once consumption trends stabilise.