Credo Brands Marketing Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Credo Brands Marketing Ltd filed with BSE on 26 May 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Credo Brands Marketing Limited reported Q4 FY26 revenue growth of 6% year-on-year to INR162 crores, with EBITDA at INR42 crores and an EBITDA margin of 25.6%, while FY26 full-year revenue remained flat at INR592 crores. Management said advertising spend rose to approximately 8% of revenue during the quarter and is expected to increase further to 8-10% of revenue going forward as part of its Mufti 2.0 premiumization initiative. The company closed 24 stores and opened 7 new stores during the quarter, and management described same-store sales growth for the quarter as flat.
Numbers mentioned
Revenue: INR162 crores (Q4 FY26)
p. 4
“Revenue for the quarter grew by 6% year-on-year to INR162 crores.”
Rasik Mittal, page 4 of the filed PDF · View the filing
Gross profit: INR96 crores (Q4 FY26)
p. 4
“Gross profit grew by 15% year-on-year to INR96 crores with a GP margin of 58.8% for the quarter.”
Rasik Mittal, page 4 of the filed PDF · View the filing
EBITDA: INR42 crores (Q4 FY26)
p. 4
“EBITDA remained flat year-on-year to INR42 crores.”
Rasik Mittal, page 4 of the filed PDF · View the filing
EBITDA margin: 25.6% (Q4 FY26)
p. 4
“Our EBITDA margin stood at 25.6%, which remains flat.”
Rasik Mittal, page 4 of the filed PDF · View the filing
Profit after tax: INR15.3 crores (Q4 FY26)
p. 4
“Profit after tax for the quarter grew by 11% and stood at INR15.3 crores.”
Rasik Mittal, page 4 of the filed PDF · View the filing
PAT margin: 9.4% (Q4 FY26)
p. 4
“Our PAT margin stood at 9.4%, which is an increase of 40 basis points.”
Rasik Mittal, page 4 of the filed PDF · View the filing
Revenue: INR592 crores (FY26)
p. 4
“Revenue for FY '26 remained flat year-on-year to INR592 crores.”
Rasik Mittal, page 4 of the filed PDF · View the filing
GP margin: 58.4% (FY26)
p. 4
“GP margin stood at 58.4%, which is an increase of 110 basis points.”
Rasik Mittal, page 4 of the filed PDF · View the filing
EBITDA: INR154 crores (FY26)
p. 4
“EBITDA for FY '26 is INR154 crores and our EBITDA margin stood at 26%.”
Rasik Mittal, page 4 of the filed PDF · View the filing
ROCE: 13.8% (FY26)
p. 5
“ROCE and ROE stood at 13.8% and 11.2%, respectively.”
Rasik Mittal, page 5 of the filed PDF · View the filing
Cash flow from operations: INR132.4 crores (FY26)
p. 5
“Our cash flow from operations was INR132.4 crores for March '26.”
Rasik Mittal, page 5 of the filed PDF · View the filing
Advertising spend: approximately INR13 crores, nearly 8% of revenue (Q4 FY26)
p. 3
“During the quarter, advertising spend stood at approximately INR13 crores, representing nearly 8% of our revenue, in line with the long-term direction and strategy we have been communicating consistently.”
Kamal Khushlani, page 3 of the filed PDF · View the filing
Website business growth: approximately 75% (FY26)
p. 4
“Our website business grew approximately 75% year-on-year in FY '26, supported by improved brand visibility, stronger content and a more seamless omnichannel experience.”
Kamal Khushlani, page 4 of the filed PDF · View the filing
New stores opened / closed: 7 opened, 24 closed (Q4 FY26)
p. 5
“During the quarter, we have opened 7 new stores, and we have closed 24 stores.”
Kamal Khushlani, page 5 of the filed PDF · View the filing
Capex per new store: INR40 lakhs to INR45 lakhs
p. 9
“So, capex per store is around INR40 lakhs to INR45 lakhs depending on the location and whether it is high street or mall.”
Rasik Mittal, page 9 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Advertising and branding investment — approximately 8% to 10% of revenues
stated firmly by Kamal Khushlani
p. 4
“Looking ahead, advertising and branding investments are expected to increase further to approximately 8% to 10% of revenues.”
Kamal Khushlani, page 4 of the filed PDF · View the filing
Same-store sales growth — mid-single-digit growth · FY27
stated as an aspiration by Kamal Khushlani
p. 6
“We'll be happy if we see mid-single-digit growth in the coming year.”
Kamal Khushlani, page 6 of the filed PDF · View the filing
Store count — flat, roughly 20 stores opened and 20 closed · FY27
stated firmly by Kamal Khushlani
p. 6
“Even in this year, Deepan, we are looking to close roughly 20-odd stores during the coming financial year. And we intend to open also roughly similar number of 20-odd stores.”
Kamal Khushlani, page 6 of the filed PDF · View the filing
EBITDA margin — around 23%, 24% · FY27
stated conditionally by Rasik Mittal
p. 9
“FY27 may be slightly lower, may be around 23%, 24% because the marketing spend is going to go up in the next year.”
Rasik Mittal, page 9 of the filed PDF · View the filing
Gross margin — 56% to 58%
stated conditionally by Rasik Mittal
p. 13
“And going forward, the gross margins, we expect to remain within the range of 56% to 58%.”
Rasik Mittal, page 13 of the filed PDF · View the filing
Advertising spend — 9% to 10% · FY27
stated conditionally by Kamal Khushlani
p. 13
“It should be in the range of 9% to 10% for the forthcoming year. However, the situation, these are calls we take on our feet.”
Kamal Khushlani, page 13 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
7 new stores opened, 24 closed.
Answered by Kamal Khushlani
Asked by Deepan S. Narayanan: How many premium format stores were opened versus closed during the quarter?
p. 5
“During the quarter, we have opened 7 new stores, and we have closed 24 stores.”
Kamal Khushlani, page 5 of the filed PDF · View the filing
Flat for the quarter, lower for the year.
Answered by Kamal Khushlani
Asked by Deepan S. Narayanan: What is same-store sales growth for the quarter?
p. 5
“The same-store sales growth for the quarter is flattish. For the year, it has been lower, but for the quarter, it's flat.”
Kamal Khushlani, page 5 of the filed PDF · View the filing
35-40% of members purchase and average ticket is around INR5,200.
Answered by Kamal Khushlani
Asked by Deepan S. Narayanan: What proportion of loyalty members made purchases and what is average spend?
p. 5
“So typically, it ranges between 35% to 40% and the average spend is in the range of INR5,200 per ticket size.”
Kamal Khushlani, page 5 of the filed PDF · View the filing
Management said this year is for consolidation, not growth, with focus on closing underperforming stores.
Answered by Kamal Khushlani
Asked by Harshit: How will the company grow revenue meaningfully with store count flat?
p. 6
“We are looking at consolidating during these years and shutting down underperforming stores, opening some new stores, like I said, and we may remain flat.”
Kamal Khushlani, page 6 of the filed PDF · View the filing
Margins will likely be slightly lower next year due to rising marketing spend.
Answered by Rasik Mittal
Asked by Disha: How should margins be viewed for FY27 given the Q-on-Q uptick?
p. 9
“FY27 may be slightly lower, may be around 23%, 24% because the marketing spend is going to go up in the next year.”
Rasik Mittal, page 9 of the filed PDF · View the filing
Costs can be passed on to customers; not fixed-price contracts.
Answered by Kamal Khushlani
Asked by Harsh Patel: Are vendor contracts fixed price or is there cost pass-through?
p. 9
“No, no, they can pass on the price. It's not on a fixed price.”
Kamal Khushlani, page 9 of the filed PDF · View the filing
Own website contributes about 5% of revenue; online EBITDA margin is lower due to discounting.
Answered by Kamal Khushlani
Asked by Amit Mehendale: What share of online revenue comes from the company's own website versus other platforms, and what is online EBITDA margin?
p. 10
“So, what comes from our own platform is roughly 5% of our overall revenue that you see in the balance sheet.”
Kamal Khushlani, page 10 of the filed PDF · View the filing
Receivables are not overdue and follow the normal business credit cycle.
Answered by Rasik Mittal
Asked by Murtaza: What percentage of receivables are backed by franchisee security deposits, and are any overdue?
p. 11
“So, Murtaza, our receivables are not overdue and they are as per the business credit cycle basically.”
Rasik Mittal, page 11 of the filed PDF · View the filing
Expansion was primarily due to product mix; margins expected to stay in the 56-58% range.
Answered by Rasik Mittal
Asked by Raman KV: What drove the gross margin expansion, and can it be sustained?
p. 13
“So, Raman, the gross margin increase is primarily due to product mix basically.”
Rasik Mittal, page 13 of the filed PDF · View the filing
Risks flagged
Uncertain near-term demand due to geopolitical tensions and inflationary pressures
p. 3
“Although near-term demand visibility continues to remain somewhat uncertain, particularly in light of an ongoing geopolitical tensions and inflationary pressures globally.”
Kamal Khushlani, page 3 of the filed PDF · View the filing
Difficulty predicting demand due to West Asia war situation
p. 6
“But these times are, just now due to the West Asia war situation and everything, it's looking very, very difficult to predict what we should expect and what kind of growth we should expect.,”
Kamal Khushlani, page 6 of the filed PDF · View the filing
Elevated and unpredictable input costs affecting gross margin
p. 10
“And it is very unpredictable going forward. But these are very difficult to predict today whether it will be 56% to 58% or it could even go down to 55%, because these are calls that we will have to take on the ground.”
Kamal Khushlani, page 10 of the filed PDF · View the filing
High commodity input costs from suppliers
p. 12
“Currently, when we are talking to any of our suppliers, the costs seem to be at an astronomical high.”
Kamal Khushlani, page 12 of the filed PDF · View the filing
Structurally higher working capital days due to risk absorption business model
p. 12
“But structurally, we will remain higher than certain peers because of the nature of our operating model.”
Kamal Khushlani, page 12 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.