Credo Brands' standalone Q2 margin expands 10.19 percentage points QoQ
Revenue grew +51.11% while expenses rose +31.56%, and the tax rate fell 1.79 percentage points to 25.51%.
Filed 04 Nov 2026, 18:12 IST · after market close · Credo Brands Marketing Ltd (MUFTI)
Key takeaways
- Standalone operating margin expanded 10.19 percentage points QoQ as revenue grew +51.11% while expenses grew +31.56%.
- Standalone net profit rose +1089.96% QoQ to Rs 27.25 cr, helped by a 1.79-percentage-point fall in the tax rate.
- Credo Brands' standalone EPS increased +1091.43% QoQ to Rs 4.17.
Price around the results
Q2 revenue surge lifts standalone operating margin
Revenue grew +51.11% QoQ to Rs 189.3 cr, while expenses grew +31.56%, allowing operating profit to rise +123.70% and operating margin to expand 10.19 percentage points. Net profit rose +1089.96% QoQ to Rs 27.25 cr as the much higher operating profit flowed through.
Lower tax rate added to profit conversion
Interest declined -1.75% and depreciation declined -1.04% QoQ, providing modest support below operating profit. The tax rate fell 1.79 percentage points to 25.51%, which flattered net profit growth. Other income contributed 6.4% of pre-tax profit, so it was not the main driver of earnings.
Margin remains well above the peer median
Credo Brands' 31.41% operating margin was 19.58 percentage points above the 11.83% median for 210 Consumer Discretionary peers that had reported. The margin also improved from 21.22% in Q1FY27, marking a clear sequential recovery.
Management targets digital reach and a premium store format
Management said it plans to grow sales through its own website and e-commerce partners, while increasing its D2C focus through platforms such as Google and Meta. The company also said it is identifying markets for opening or relocating EBOs and developing experiential flagships and premium stores. Management said MUFTI 2.0 is intended to rekindle demand, while warning that the digital approach may increase advertising and marketing costs and affect profitability.
Market reaction is still pending
The standalone results were filed after market close on 4 November 2026. There is no post-results market reaction to assess in this report.
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 | ₹189 cr | ₹125 cr | +51.11% |
| Other income | ₹2 cr | ₹2 cr | +11.43% |
| Expenses | ₹130 cr | ₹99 cr | +31.56% |
| Operating profit | ₹59 cr | ₹27 cr | +123.70% |
| Operating margin (%) | 31.41% | 21.22% | — |
| Interest | ₹6 cr | ₹6 cr | -1.75% |
| Depreciation | ₹19 cr | ₹19 cr | -1.04% |
| Profit before tax | ₹37 cr | ₹3 cr | +1064.97% |
| Tax | ₹9 cr | ₹1 cr | +984.88% |
| Net profit | ₹27 cr | ₹2 cr | +1089.96% |
| EPS (₹) | ₹4.17 | ₹0.35 | +1091.43% |
Operating margin of 31.41% compares with a Consumer Discretionary sector median of 11.83% across 210 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.
Guidance & outlook
- The company plans to grow sales through its own website and e-commerce partners.
Expansion
- The company is identifying potential markets for opening or relocating EBOs.
New initiatives
- The company is increasing focus on its D2C channel using platforms such as Google and Meta.
- The company is developing a premiumised store experience through experiential flagships and premium stores.
- The company has introduced MUFTI 2.0 to rekindle demand and unlock its next phase of growth.
Problems & risks
- The company says gross margins remained consistent despite a tough demand scenario.
- The company states that its digital approach may increase advertising and marketing costs and affect profitability.
What to watch
- Whether operating margin holds above 31.41% after its 10.19-percentage-point QoQ expansion.
- Whether expenses remain below revenue growth after rising +31.56% versus revenue growth of +51.11%.
- Whether D2C expansion puts pressure on the 31.41% operating margin through higher advertising and marketing costs.