Vedant Fashions Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Vedant Fashions Ltd filed with BSE on 02 Aug 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
Vedant Fashions reported Q1 FY27 revenue from operations of around INR301 crores, up 7.2% year-on-year, with retail sales to customers growing 3.4% and domestic same-store sales growth of approximately 3.8%. The company maintained a gross margin of 65.7% and EBITDA margin of 44.6%, with profit after tax of around INR81 crores, up 14.7% year-on-year. Management discussed store closures and openings strategy, premiumization trends, competitive dynamics in the celebration wear industry, and plans for the MBO, SIS and e-commerce channels.
Numbers mentioned
Retail sales (sale to customers): INR4,195 million (Q1 FY27)
p. 3
“During the first quarter of FY '27, our retail sales, that is the sale of our customers stood at INR4,195 million, reflecting a growth of 3.4% over the quarter 1 of last financial year.”
Vedant Modi, page 3 of the filed PDF · View the filing
Domestic same-store sales growth: approximately 3.8% (Q1 FY27)
p. 3
“During the quarter, the company recorded domestic same-store sales growth of approximately 3.8% compared to Q1 FY '26.”
Vedant Modi, page 3 of the filed PDF · View the filing
Revenue from operations: around INR3,014 million (Q1 FY27)
p. 3
“during this period, the company reported revenue from operations of around INR3,014 million, delivering a growth of 7.2% over the first quarter of FY '26”
Vedant Modi, page 3 of the filed PDF · View the filing
Revenue from operations: around INR301 crores (Q1 FY27)
p. 4
“During this period, the company reported revenue from operation of around INR301 crores, delivering a growth of 7.2% over Q1 of FY '26.”
Rahul Murarka, page 4 of the filed PDF · View the filing
Gross margin: 65.7% (Q1 FY27)
p. 4
“The company continues to report industry-leading gross margin of 65.7% and healthy EBITDA margin of 44.6%.”
Rahul Murarka, page 4 of the filed PDF · View the filing
EBITDA growth: 10.8% (Q1 FY27 vs Q1 FY26)
p. 4
“The EBITDA during the current period grew by 10.8% compared to Q1 of FY '26.”
Rahul Murarka, page 4 of the filed PDF · View the filing
PAT margin: 26.7% (Q1 FY27)
p. 4
“The company also reported a healthy PAT margin of 26.7% and the profit after tax stood at around INR81 crores with a strong growth of 14.7% compared to Q1 of FY26.”
Rahul Murarka, page 4 of the filed PDF · View the filing
Cash conversion ratio: approx. 101% (TTM ended June 2026)
p. 4
“Moreover, during the trailing 12 months period ended June 2026, the company reported strong cash conversion ratio of approx. 101% which has been computed based upon operating cash flow to PAT, excluding finance income.”
Rahul Murarka, page 4 of the filed PDF · View the filing
Inventory days: 34 days (TTM June 2026)
p. 8
“34 days. For TTM June '26, we have 34 days of inventory.”
Rahul Murarka, page 8 of the filed PDF · View the filing
MBO, SIS and e-commerce salience: close to 5% (current)
p. 13
“I think today, it would be somewhere close to 5% for all of them combined.”
Vedant Modi, page 13 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.
Store openings tail rate — 3% to 4% · FY27
stated firmly by Vedant Modi
p. 6
“around 3% to 4% is typically what our tail is in any financial year, which is going to be the case in a typical financial year, and that is what we'll stick to”
Vedant Modi, page 6 of the filed PDF · View the filing
Same-store sales growth — high single-digit · balance of 9 months FY27
stated conditionally by Vedant Modi
p. 7
“That's a fair understanding. And I would say that despite of everything, we will still be looking at a net positive financial year.”
Vedant Modi, page 7 of the filed PDF · View the filing
Gross margin — 65%, 65.5% · starting next quarter
stated as an aspiration by Vedant Modi
p. 7
“I think starting Q3, it's all in the base.”
Vedant Modi, page 7 of the filed PDF · View the filing
ASP growth — mid of Q2
stated as an aspiration by Vedant Modi
p. 8
“while our ambition is slightly higher from an ASP perspective, we will definitely try to start achieving them somewhere between mid of Q2.”
Vedant Modi, page 8 of the filed PDF · View the filing
Wedding season sales trend — November to March
stated as an aspiration by Vedant Modi
p. 12
“all in all, I think November to March will be a fantastic period.”
Vedant Modi, page 12 of the filed PDF · View the filing
October sales — October FY27
stated as an aspiration by Vedant Modi
p. 12
“Compared to last year, October this year might be slightly weaker.”
Vedant Modi, page 12 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.
Management said the required revenue per square foot varies by city tier and there is no pressure on franchisee ROI.
Answered by Vedant Modi
Asked by Sameer Gupta: Is INR11,000 per square foot the right benchmark for franchisee economics, and is there pressure on franchisee margins from GST changes?
p. 5
“franchisees have made a great ROI over the last couple of years. Now they are making a good ROI in the recent past. So, there is absolutely no pressure of this sort.”
Vedant Modi, page 5 of the filed PDF · View the filing
Management said closures are due to market shifts and consolidation into larger stores, not competition, and closures were front-loaded into Q1 for strategic reasons.
Answered by Vedant Modi
Asked by Sameer Gupta: Are store closures accelerating due to competition-driven underperformance?
p. 5
“I have never faced a reason for a closure to be competition.”
Vedant Modi, page 5 of the filed PDF · View the filing
Management said the core goal is strong SSG this year followed by store growth, with SIS/MBO split off as a separate vertical and international markets facing UAE and North America headwinds.
Answered by Vedant Modi
Asked by Rahul Agarwal: What is the outlook for store consolidation across EBO, international, and SIS categories over the next 12 months?
p. 6
“UAE on the account of war has faced a lot of issues and challenges. North America on the account of tariffs has faced a lot of challenges.”
Vedant Modi, page 6 of the filed PDF · View the filing
Management noted gross margin improved sequentially from Q4 FY26's 65% to 65.7% in Q1 FY27, with GST fully in the base from Q3.
Answered by Rahul Murarka
Asked by Rahul Agarwal: Is gross margin expected to stabilize around 65%-65.5% going forward?
p. 7
“if you compare with Q4 of FY26, then the gross margin during Q4 was 65% where in Q1 of FY27, the gross margin is 65.7%.”
Rahul Murarka, page 7 of the filed PDF · View the filing
Management said retention numbers have grown year-on-year and a task force is dedicated to repeat business.
Answered by Vedant Modi
Asked by Parth Sodha: Has customer retention improved measurably in Q1 given the 90 lakh customer database?
p. 8
“we have a separate task force now set up internally to only drive repeat business, which is increasingly a large part of our business.”
Vedant Modi, page 8 of the filed PDF · View the filing
Management attributed quarterly variation to the auto replenishment mechanism and suggested reviewing on a full-year basis.
Answered by Rahul Murarka
Asked by Ashutosh Joytiraditya: Why is there a differential between primary and secondary sales growth this quarter?
p. 8
“So quarterly level, the growth in primary and secondary can always vary. So that is where when we review, we review more on a full financial year level basis.”
Rahul Murarka, page 8 of the filed PDF · View the filing
Management said it's too early to assess as most new store openings will only begin at end of Q2/early Q3.
Answered by Vedant Modi
Asked by Santanu: Are new stores actually delivering the 85% better revenue per square foot compared to closed stores as previously indicated?
p. 9
“Majority of our gross opening for this year will only start at the end of Q2 and early Q3.”
Vedant Modi, page 9 of the filed PDF · View the filing
Management said internal research across 8 states shows store counts declining industry-wide, driven by difficulty in liquidating dead stock, but it's too early to conclude the market is shrinking.
Answered by Vedant Modi
Asked by Gaurav Jogani: How is the industry-wide store closure trend and competitive intensity evolving, and is the overall market shrinking?
p. 10
“Broadly, what we see is that overall now, the number of stores have started to come down in these 8 states at least.”
Vedant Modi, page 10 of the filed PDF · View the filing
Management said these channels are around 5% of revenue combined with aggressive growth targets, and cited strong Q3 product and marketing pipeline as reasons for optimism.
Answered by Vedant Modi
Asked by Anand Shah: What is the combined revenue salience of MBO, SIS and e-commerce, and what is driving increased optimism this year?
p. 13
“I think today, it would be somewhere close to 5% for all of them combined. And the growth rate targets we have for them are quite aggressive.”
Vedant Modi, page 13 of the filed PDF · View the filing
Risks flagged
International markets in UAE and North America facing pressure from geopolitical and tariff issues
p. 6
“UAE on the account of war has faced a lot of issues and challenges. North America on the account of tariffs has faced a lot of challenges.”
Vedant Modi, page 6 of the filed PDF · View the filing
Difficulty liquidating dead stock in the celebration wear industry
p. 11
“Dead stock in this industry is extremely painful. Whatever does not sell, it's very difficult to liquidate that at a discount.”
Vedant Modi, page 11 of the filed PDF · View the filing
Rental pressure affecting pace of new store openings
p. 6
“as rental pressure starts to wear off in the coming times, we will be a little more aggressive with our gross openings as well.”
Vedant Modi, page 6 of the filed PDF · View the filing
Postponed Navratri due to Adhik mass creating a weaker October compared to last year
p. 12
“So, I think broadly, everything is in line from a year-on-year perspective and might be slightly stronger is what our reading is. But the September, October period might be slightly more difficult for us.”
Vedant Modi, 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.