MUFTI Q2 revenue hits Rs 189.3 crore as PAT rises 45%

Credo Brands Marketing Limited reported its highest-ever quarterly revenue of Rs 189.3 crore in Q2 FY27 ended 30 September 2026, as profit after tax rose 45% year on year to Rs 27.3 crore and EBITDA margin expanded 200 basis points to 31.4%. MUFTI’s revenue increased 16% from Q2 FY26.

How did MUFTI perform in Q2 FY27?

MUFTI recorded 16% year-on-year revenue growth to Rs 189.3 crore in Q2 FY27, compared with Rs 163.7 crore in Q2 FY26. The company called the quarterly revenue figure its highest ever. Gross profit rose 19% to Rs 111.0 crore, while earnings before interest, tax, depreciation and amortisation, or EBITDA, increased 24% to Rs 59.5 crore.

MUFTI’s profit after tax, or PAT, rose Rs 8.5 crore to Rs 27.3 crore from Rs 18.8 crore a year earlier. PAT growth of 45% exceeded the 24% growth in EBITDA and the 16% increase in revenue, while gross profit grew Rs 17.5 crore against a Rs 25.6 crore increase in sales.

What changed in MUFTI’s Q2 FY27 margins?

MUFTI’s gross margin increased 150 basis points to 58.6% in Q2 FY27 from 57.1% in Q2 FY26, while EBITDA margin rose 200 basis points to 31.4% from 29.4%. One basis point equals one-hundredth of a percentage point. The gross-profit increase of 19% therefore exceeded revenue growth of 16% during the quarter.

MUFTI’s PAT margin expanded 290 basis points to 14.4% from 11.5% as net profit reached Rs 27.3 crore. EBITDA increased Rs 11.4 crore year on year, from Rs 48.1 crore to Rs 59.5 crore, compared with the Rs 8.5 crore increase in PAT.

The reported figures show profit growth outpacing revenue growth alongside higher gross, EBITDA and PAT margins in Q2 FY27. MUFTI did not provide a quantified breakdown of individual operating-cost, finance-cost or tax items that contributed to the difference between EBITDA growth of 24% and PAT growth of 45%.

How did MUFTI’s H1 FY27 result compare with H1 FY26?

MUFTI’s H1 FY27 revenue rose 11% to Rs 314.6 crore, but EBITDA margin declined 50 basis points to 27.4% from 27.9% in H1 FY26. This differs from the Q2 outcome because half-year EBITDA grew 9% to Rs 86.1 crore, below the 11% revenue-growth rate, even as gross profit increased 12% to Rs 188.2 crore.

MUFTI’s H1 FY27 gross margin improved 80 basis points to 59.8%, while PAT increased 18% to Rs 29.6 crore and PAT margin improved 50 basis points to 9.4%. The Q2 EBITDA margin of 31.4% was 4.0 percentage points above the 27.4% H1 margin, indicating that the second quarter carried a higher reported operating margin than the six-month average.

How is MUFTI changing its store and channel model?

MUFTI had 419 exclusive brand outlets, or EBOs, as of 30 September 2026, and EBOs contributed 53% of H1 FY27 sales. Multi-brand outlets accounted for 29%, online channels for 12%, large format stores for 4% and other channels for 2%, making the EBO share 24 percentage points higher than the MBO share.

MUFTI’s product mix in H1 FY27 was led by bottom wear at 43% and shirts at 42%, together accounting for 85% of sales. T-shirts represented 12%, outerwear 1% and other products 2%. The company reported working-capital days of 217 as of 30 September 2026, return on capital employed of 14.6% and return on equity of 11.9% for H1 FY27.

Management said MUFTI opened 14 stores under the New Mufti 2.0 identity during the quarter, including 12 renovated stores, taking the current total to 57 stores in that format. The company said the multi-year programme focuses on premium-format stores, selective store rationalisation, premium retail destinations and productivity rather than store count alone.

MUFTI’s marketing and advertising spending was 6.7% of H1 FY27 revenue. Management said it continued digital marketing through Google and Meta, alongside content-led engagement, digital storytelling and performance marketing, with the omnichannel strategy intended to link online discovery and offline conversion. Management also said this was the third consecutive quarter of positive same-store sales growth.

Conclusion

MUFTI’s Q2 FY27 result combined record revenue of Rs 189.3 crore with PAT growth of 45% to Rs 27.3 crore. The quarter’s 150-basis-point gross-margin expansion, 200-basis-point EBITDA-margin expansion and 290-basis-point PAT-margin expansion contrast with H1 FY27, when EBITDA margin was 50 basis points below the prior-year level despite 11% revenue growth.

The next issue is execution of the multi-year Mufti 2.0 plan across the 57 new-format stores and the wider network of 419 EBOs. Management’s stated priorities are store productivity, selective rationalisation, premium-location expansion, merchandise improvement and digital brand investment, with marketing and advertising spend at 6.7% of H1 FY27 revenue.