Credo Brands Marketing Ltd Q4 FY25 Results

In FY25, our focus was on achieving sustainable growth without compromising profitability—and we’re pleased to have met that goal. Even in a subdued market environment, particularly within the premium and mid-premium segments, we recorded meaningful growth of 9%, taking our revenue to INR 618.2 crores, which demonstrates the strong brand appeal and resilience inspite of challenging market conditions. Amid industry-wide headwinds, we maintained a healthy gross margin of 57.2%. Our cost optimization efforts played a key role in controlling expenses, leading to a 12% year-on-year increase in EBITDA and a 15% year- on-year growth in PAT. A key area of success was optimizing inventory levels. We reduced inventory days by 10 days to 67 days in FY25. In FY25, we opened 16 new stores on a net basis. Given the subdued market environment, we adopted a selective approach to store expansion, prioritizing high-potential locations aligned with evolving demand trends. Looking ahead, we plan to expand our store network in both existing and new cities where we identify strong market opportunities. As demand begins to pick up, we are well-positioned to open new stores, to strengthen MUFTI’s presence, and further grow our EBO footprint. As part of our broader strategy to expand our presence in the direct-to-consumer (D2C) segment, we have been actively working towards strengthening our digital footprint. Our primary focus has been on leveraging key online platforms, particularly Google and Meta, to attract new customers, drive traffic, and enhance conversion rates. This digital-first approach has been instrumental in scaling our business in this space. While this strategy may lead to an increase in advertising and marketing expenses, we plan to maintain our brand- building investment at ~5% of revenues for FY26, a guidance given earlier as well. In line with our endeavour to premiumise our Brand experience, we have initiated a transformation of our retail identity. Several flagship stores will be upgraded to align more closely with our premium brand positioning. These revamped formats are designed to offer a superior, high-quality shopping experience that resonates with the modern customer. Our commitment to offering high-quality products remains unwavering, and this initiative marks a significant milestone in our journey toward becoming a truly premium brand. Our asset light business model, robust cash flows, and low-debt position provide a solid foundation to execute our multipronged strategy whilst maintaining profitability and healthy margins. We remain confident in our ability to navigate short-term market fluctuations and deliver sustainable, consistent, and profitable growth in the years to come.