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Informist, Friday, Jul. 24, 2026

By Deesha Jadhav

MUMBAI –Vedant Fashions Ltd. is expected to report a steep sequential fall in its net profit and revenues for the June quarter which had a month that was an inauspicious period for celebrations, according to brokerages tracking the company.

The ethnic wear company is expected to report a standalone net profit of INR 667 million for the June quarter, down 5% from INR 703 million for the

year-ago quarter, according to the average of estimates from four brokerages. On a sequential basis, the net profit is expected to fall nearly 42%. The highest estimate for the company's net profit is INR 711 million from Elara Securities (India) Pvt. Ltd. and the lowest is INR 646 million from Motilal Oswal Financial Services Ltd.

The company's standalone net sales for the June quarter are expected to be INR 2.90 billion, up 3.4% on year but down over 27% on quarter, according to the average of estimates. The highest estimate for revenue is INR 3 billion from Elara Securities and the lowest is INR 2.84 billion from Motilal Oswal.

The company's revenue growth is likely to remain subdued in the June quarter due to lower footfall because of the ‘Adhik Maas', the additional, 13th month in the Hindu calendar which occurs once in four years and is considered inauspicious. Usually, the June quarter includes the main summer wedding season which is a demand driver for businesses such as Vedant Fashions. However, this year, this inauspicious period was from May 17 to Jun. 14 during which no weddings or other celebrations were held, which affected demand.

The company is also facing increasing competition in the ethnic wear market, brokerages said. The company's same-store sales growth is likely to fall around 2%, Elara said. "We expect retail space to grow at a slower pace of 0.8% YoY to reach 1.79mn sqft (million square feet) in Q1FY27E as the pace of store expansion may improve gradually," the brokerage said.

Vedant Fashions' gross margin is expected to remain under pressure as it continues to absorb the impact of the cuts in the goods and services tax, Kotak said. The company is expected to report earnings before interest, tax, depreciation, and amortisation of INR 1.20 billion, down slightly from a year ago, according to the average of four estimates. On a sequential basis, the EBITDA is likely to fall over 34%. The highest estimate for EBITDA is INR 1.27 billion from Elara Securities and the lowest is INR 1.17 billion from Motilal Oswal.

The company's EBITDA margin is estimated at 41.4%, an on-year decline of 150 basis points, primarily due to weak gross margins and operating deleverage, Kotak Securities said. Motilal Oswal expects a 180 basis points decline in EBITDA margin due to pressure on gross margins.

Vedant Fashions manufactures and retails ethnic wear under several brands such as Manyavar, Mohey, Twamev, Mebaz, and Manthan. Apart from India, it has a presence in the US, Canada, the UK, and the UAE. The company will report its June quarter earnings Saturday. Friday, shares of Vedant Fashions ended at INR 402.30 on the National Stock Exchange, flat from Thursday. The stock is down 12% since the company announced its March quarter earnings in May.

Of the five research reports on the company available with Informist, three have a ‘buy' recommendation on the stock with an average target price of INR 561.7 per share. This is nearly 40% higher than the current market price. Two brokerages have a ‘hold' recommendation on the stock with an average target price of INR 463.5 per share.

The following are the Apr-Jun earnings estimates for Vedant Fashions from four brokerages, in descending order of the estimates of net profit, in INR million:

End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Pankaj Aher

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