Target: ₹ 890

CMP: ₹ 734.70

Vedant Fashions Ltd (VFL) is a leading player in India’s celebration Wear Market, Anchored by Flagship Brand Manyavar. Through its five brands – manyavar, mohey, Twamev, manthan and mebaz – the company offers Ethnic Wear for Men, Women and Children. VFL Operates 662 Exclusive Brand Outlets (EBOS) Across India and 16 EBOS in 12 Global Cities, Spanning about 17.9 Lakh Sq Ft, with a presence 26 stats and in the us, UAE, UAK and Canada.

Revenue Grew About 17 per cent year-on-year (yoy) to ₹ 281 Crore in Q1fy26, Driven by a Revival in Wedding and Festival Wear Demand, Ongoing Store Expantions, Strong Customer Traction (UP Same-STORE SAles Growth (UP 17.6 per cent).

VFL Sustained Its Industry-Lading Performance, Reporting a 66.9 per cent gross margin. Ebitda Grew About 7 per cent to ₹ 121 Crore, While Ebitda Margins Contracted About 410 BPS to 43 per cent in Q1fy26 Due to a Rise in Marketing Spend (5.6 per cent in Q1Fy26 V1Fy26 V CENT in Marketing Spend Q1fy25) and other expenses. Marketing spend is expected to normalise over the year, which should help maintain healthy margins. Net Profitability Remained Strong, with a Pat Margin of Around 25 per cent and pat of ₹ 70 Crore, A 12.4 per cent yoyy growth.

VFL is prioritising portfolio quality over aggressive expansion, consolidating weaker stores, managing Rental costs selectively and aiming for 8-10 per cent stores in fry 26e, with muttage mutted net additions due to strategic closures.

As per market consensus, the stock Currently Trades at 40X One-Year Forward P/E, which is attractive compared to its three-yar average p/e of 51.3x. VFL’s Strong Brand Equity, Consistent Margin Leadership, Expanding Global Footprint and Tech-Driven Omni-Channel Strategy College Collegly Reinforce POSINFORCE POSINFORCE PORMINEFRECE POSINFORS

Published on September 16, 2025