Navratri shift drives sequential drop as margin narrows 4.47 points
Revenue fell 10.62% QoQ while expenses declined 3.56%, and other income made up 31.43% of pre-tax profit.
Filed 05 Nov 2026, 16:36 IST · after market close · Vedant Fashions Ltd (MANYAVAR)
Key takeaways
- Standalone net profit fell 30.26% QoQ as the Navratri calendar shifted out of Q2, according to management.
- Operating margin narrowed 4.47 percentage points to 39.0% because revenue fell 10.62% while expenses declined only 3.56%.
- Other income contributed 31.43% of pre-tax profit, making the quarter's profit mix less operationally driven.
Price around the results
Festive-calendar shift cut Q2 momentum
Vedant Fashions reported standalone revenue of Rs 269.37 cr, down 10.62% QoQ, while operating profit fell 19.80% and net profit fell 30.26%. Management said Q2 FY27 performance was affected because Navratri moved from Q2 in FY26 to Q3 in FY27. The company also reported domestic same-store sales growth of -5.8% in Q2 FY27.
Slower revenue decline than costs squeezed margin
Expenses declined 3.56% QoQ, less than the 10.62% fall in revenue, driving a 4.47 percentage-point contraction in operating margin to 39.0%. Interest expense declined 1.08%, but the tax rate rose 0.55 percentage points to 24.16%. Other income fell 21.52% and represented 31.43% of pre-tax profit, so the reported profit also had a material non-operating contribution.
Margin remained well above the consumer discretionary median
Vedant Fashions' 39.0% operating margin was 27.41 percentage points above the 11.59% median for the 238 Consumer Discretionary peers that had reported the quarter. Sequentially, this was a clear step down from Q1 FY27's 43.47%, although the available trend shows only one prior quarter and does not establish a multi-quarter direction.
EBO additions and new collections expand the update
Management said domestic EBO area increased by 4.9 thousand square feet in Q2 FY27. The company said Twamev's “Truly You” campaign featuring Orry generated strong buzz, while Manyavar introduced its Quiet Luxury Collection and The After Hours Collection. Management also reported domestic same-store sales growth of -0.3% for H1 FY27.
Results were filed after market close
The standalone results were filed after market close on 5 November 2026. A post-results stock move is therefore not included here.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹269 cr | ₹301 cr | -10.62% |
| Other income | ₹23 cr | ₹30 cr | -21.52% |
| Expenses | ₹164 cr | ₹170 cr | -3.56% |
| Operating profit | ₹105 cr | ₹131 cr | -19.80% |
| Operating margin (%) | 39.00% | 43.47% | — |
| Interest | ₹13 cr | ₹13 cr | -1.08% |
| Depreciation | ₹41 cr | ₹42 cr | -1.87% |
| Profit before tax | ₹74 cr | ₹106 cr | -29.75% |
| Tax | ₹18 cr | ₹25 cr | -28.13% |
| Net profit | ₹56 cr | ₹81 cr | -30.26% |
| EPS (₹) | ₹2.31 | ₹3.32 | -30.42% |
Operating margin of 39.00% compares with a Consumer Discretionary sector median of 11.59% across 238 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Expansion
- Domestic EBO area increased by 4.9 thousand square feet in Q2 FY27.
New products
- Manyavar introduced the Quiet Luxury Collection and The After Hours Collection.
New initiatives
- Twamev launched its “Truly You” campaign featuring Orry in Q2 FY27.
Problems & risks
- Q2 FY27 performance was affected because Navratri shifted from Q2 in FY26 to Q3 in FY27.
- Domestic same-store sales growth declined 5.8% in Q2 FY27 versus Q2 FY26.
- Domestic same-store sales growth declined 0.3% in H1 FY27 versus H1 FY26.
What to watch
- Whether operating margin moves back from 39.0% after the 4.47 percentage-point QoQ decline.
- Whether domestic same-store sales growth improves from -5.8% in Q2 FY27.
- Whether the 4.9 thousand square feet of added domestic EBO area is followed by further disclosed expansion.