Credo Brands Marketing, which offers casual clothing for men under its flagship brand “Mufti,” saw its shares crash 20% in intraday trade on Friday, August 1, to ₹132 apiece—a level not seen since mid-May and the biggest intraday drop since its listing in December 2023. The sell-off came as investors seemed to be disappointed with the company’s June quarter performance.
For the quarter ended in June, the company reported a 36% YoY drop in net profit to ₹6.3 crore, while revenue from operations fell to ₹120 crore from ₹123.9 crore in the same period last year. EBITDA declined 7% YoY to ₹31 crore, with margins contracting by 100 basis points to 25.9%.
The company’s performance during the reporting quarter was impacted by continued softness in discretionary spending, particularly across Tier 2 and Tier 3 markets, where consumer sentiment remains muted. Rising expenses also weighed on results, driven by ongoing efforts to firmly position the brand within the premium segment of the Indian apparel market to sustain growth and enhance profitability.
Credo Brands is accelerating the transformation of its retail footprint by opening around 20 premium flagship stores in FY26 while closing underperforming stores.
These flagship stores, as per the company, will focus on high-potential markets, strengthening the brand’s presence in premium and luxury malls as well as high-street locations, and it said the retail network transformation and rationalization will continue into FY27.
The company also stated that it is intensifying its digital marketing strategy. Its strategic partnerships with Google and Meta, initiated last year, are now reaching an inflection point, and it plans to scale up content creation and increase marketing investments to effectively communicate Mufti’s transformation. Amid these initiatives, the company expects its advertising and marketing costs as a percentage of revenue to rise to 6–7% in FY26 and 8–10% in FY27.
However, the company anticipates that the benefits of these initiatives will start materializing from FY28 onwards, by which time advertising and marketing expenses are expected to stabilize.
Credo Brands remains confident in its strategic direction and is committed to its vision of becoming one of India’s leading premium apparel brands, said Kamal Khushlani, Promoter, Chairman, and Managing Director.
Stock trades at a 53% discount to IPO price
The stock made a muted debut on the stock market in December 2023 and has largely remained under selling pressure since listing. The downtrend persisted until February 2025, after which it staged a brief recovery in March and held gains for the next two months.
However, the bearish momentum resumed, with the stock posting losses in May and June, which further intensified on the first trading day of August. At current levels, the stock is trading 53% below its IPO price of ₹280 apiece.
The company was incorporated on April 29, 1999, and has evolved significantly over the past several years, from consisting of only shirts, t-shirts, and trousers in 1998 to a wide range of products including sweatshirts, jeans, cargos, chinos, jackets, blazers, and sweaters in relaxed holiday casuals, authentic daily casuals, urban casuals, party wear, and also athleisure categories as of date.
Its products are available through a pan-India multichannel distribution network that it has built over the years, combining its exclusive brand outlets (“EBOs”), large format stores (“LFSs”), and multi-brand outlets (“MBOs”), as well as online channels comprising its website and other e-commerce marketplaces.
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