Soft Q1 SSG masks H2 recovery bet on product pipeline, Diwas, premium mix

₹301.4 Cr delivered, 7.2% YoY growth confirmed

₹80.6 Cr delivered (reported as ₹81 Cr with rounding), 14.7% YoY confirmed

Disclosed gross margin 65.7%; EBITDA margin 44.6% stated, EBITDA growth 10.8% YoY

3.8% domestic SSG confirmed; retail sales growth 3.4% YoY, lower than SSG — mix of price and volume

Operating cash flow to PAT excluding finance income = 101% TTM — confirmed

₹80.6 Cr / ₹301.4 Cr = 26.74%, matches claimed 26.7%

Q1 featured aggressive closures (net negative), H2 planned aggressive openings. Shift from steady-state to Q1 rationalization + H2 expansion; rationale: exit weak markets, consolidate to larger stores, avoid Q2 off-season rentals. Not a strategic retreat.

Twamev reported to outperform company growth average, driving premiumization thesis. Prior FY26 guidance emphasized ASP and SSG equally; premium focus now forefront, supporting higher-margin mix.

No specific FY26 guidance on Diwas; now live in market ~1 year, dealer enthusiasm high for Q2, e-com channels cracked. Upside catalyst if execution succeeds.

₹1 billion-view Rashmika/Vijay campaign completed; Q2+ strategy shifts to conversion-led campaigns leveraging built recall. Tactical shift in spend efficiency, not spend magnitude.

Prior FY26 guidance implied mid-single-digit+ SSG via ASP + customer experience. Current guidance: high single-digit SSG for 9 months remaining, but no firm number. Ambition maintained, timing hedged to H2.

Revenue per sqft depends on tier: ₹7k (Tier 3), ₹8.5k (Tier 2), ₹10-10.5k (Tier 1). Franchisees making good ROI in recent years, no pressure, no margin change planned.

3-4% tail typical, SSG priority first, H2 aggressive openings. MBO/SIS separate now with different benchmarks. Q2 biggest season for MBO/SIS. International pressured by war (UAE) and tariffs (NA).

YoY retention grown, task force set up, will announce next call if plans materialize within this month.

Twamev outperformed company. SSG mix: half volume, half price. ASP ambition higher for year, achievement starts mid-Q2.

Auto replenishment system based on front-end demand. Quarterly variation normal, review on full FY basis where both align.

34 days TTM June 2026.

Majority of gross openings from prior year already reported, will comment end Q2/Q3 once new stores ramp. Mohey doing better than company average, doubled down on non-bridal categories.

Double down on non-bridal categories (stitched suits, sarees, crop-top lehengas), aggressive digital marketing for these categories.

Majority from SSG, positive delta from new vs closed stores, MBO/SIS/e-com aggressive targets, quite optimistic on achieving decent growth.

Very good trends from market, dealers excited, cracked e-commerce deals (Myntra, Amazon, Blinkit, Zepto), inventory at warehouses, excitement levels very high.

Internal research on 8 top states shows net closures starting, larger competitors closing. Difficult vertical (dead stock painful). No easy liquidity at discount. Can't comment on market shrinking yet, still early.

Too early to comment, saw good growth in many markets, need 2-3 quarters before final analysis. When competition was opening next to Vedant stores, those stores saw better delta.

Everything in line. Only change: Adhik mass postponed Navratri. January has wedding dates this year (vs none last year). Nov-March fantastic, October might be weaker, Sept-Oct difficult.

Goal: high eyeballs, top-of-mind relevance, drive store footfall. Campaign benefits over 5-6 years. Q2+ shift to conversion-led campaigns capitalizing on built recall.

~5% combined today, growth rate targets quite aggressive.

Product lineup for Q3 gives confidence, marketing investment for Q3 strong, competitive advantages (product, store experience, location, pricing) reinforced via India tour. Long-term very confident on brand.

Q1 SSG 3.8%; target high single-digit for balance of 9 months. No specific FY27 revenue number. Dependent on product pipeline (Q3), Diwas launch, wedding calendar (Nov-Mar strong), and store openings (3-4% net).

Management explicitly stated 'net positive financial year' expected. Combines SSG, store productivity delta (new vs closed), MBO/SIS/e-com at 5% revenue with aggressive targets.

Q1 65.7% (improved QoQ from Q4 65%). GST implementation in Q3 will be fully in base; YoY comparison effect ends. Mix improvement (premiumization) supports margin.

Leverage on improved SSG and operational efficiency (auto replenishment, KPI monitoring) expected to support margins if SSG recovers.

Company provides capex guidance to franchisees; no company capex guidance disclosed. Store openings 3-4% net of total portfolio, no absolute store count target given.

Q1 SSG 3.8%, significantly below prior trajectory and management ambition. QoQ -24.6% (seasonal but steep). H2 recovery to high single-digit unquantified and dependent on new product success, Diwas launch, wedding calendar.

UAE market under pressure from war; North America facing tariff challenges. Management acknowledged 'tremendous pressure in last couple of months,' hoping for recovery but no timeline. Unquantified revenue impact.

Diwas launched ~1 year ago, not yet material in Q1 results. Heavy reliance on Q3 performance. Dealer enthusiasm and e-commerce deals noted, but no sales run-rate disclosed. Risk of overhype vs delivery.

Q1 featured aggressive closures (net negative); new store productivity (85% higher per management) not yet validated by new store ramp (majority will occur Q2-Q3). Risk of reopening cost/displacement if new locations underperform.

Gross margin 65.7% this quarter, improved QoQ from Q4 65% but down from Q1 FY26 (higher due to GST timing). Management expects stabilization at 65-65.5% from Q3 when GST fully in base. Risk if premiumization mix doesn't hold.

Analyst flagged 3-year pressure on ₹11k/sqft benchmark, GST impact on 18%, 29.5% franchisee margin. Management refuted: no pressure, ROI solid, no margin change planned. Monitor if refutation holds.