Vedant Fashions Ltd (MANYAVAR) Q2 FY27 Results Analysis: EBITDA Margin Compresses 310 bps, PAT Stays Flat

Cofacto Research Published November 05, 2026 3 min read

Neutral

Vedant Fashions Ltd's Q2 FY27 numbers came in mixed, with revenue of Rs. 269.37 Cr (+2.36% YoY) and PAT growth of +0.25% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quick Details

Results date	November 05, 2026
Revenue (Q2)	Rs. 269.37 Cr (+2.36% YoY)
PAT (Q2)	Rs. 56.22 Cr (+0.25% YoY)
EBITDA margin	39.00% (-310 bps YoY)
EPS (Q2)	Rs. 2.31 (+0.00% YoY)

Quarter Snapshot

Q2 FY27 revenue grew 2.36% YoY to Rs.269.37 Cr on a soft base, but PAT was flat at Rs.56.22 Cr with EPS unchanged at Rs.2.31 as expenses grew more than double the revenue pace. P&L-derived EBITDA margin fell 310 bps YoY to 39.00%, though 233 bps reflects an inventory build ahead of the H2 festive season; H1 company-definition EBITDA margin held within 57 bps YoY. No guidance beats can be scored from this filing as SSSG, store counts and gross margin are not disclosed; the H2 test is the high single-digit SSSG guide and ~65-65.5% gross-margin stabilization from Q3.

Q2 FY27 Expectations vs Results

Driver	Expected before results	What happened	Verdict
Revenue "in-line to ahead against a weak base"	Modest YoY growth on soft base	Revenue +2.36% YoY (revenue_yoy_pct)	Played out
Q2 as "tail of the GST drag window" before ~65–65.5% stabilization from Q3	Margin pressure residual, then stabilize	Gross margin not derivable from filing (job charges undisclosed); ex-job-charges cost ratio 28.93% vs 28.36% — open for the call	Not observable
High single-digit SSSG guide credibility; Q2 print as test	Path-to-guide check	SSSG not disclosed in filing — open for the call	Not observable
Store-count disclosure as "first hard evidence" on net-positive FY27	Q2 count vs 501 domestic EBOs at Q1-end	Store count not disclosed; ROU assets −Rs.48.10 Cr, lease liabilities −Rs.46.61 Cr vs Mar-26 — rationalization visible; count not	Partially
Cost discipline "runs against the sector grain"	Margin held	P&L-derived EBITDA margin −310 bps YoY; company-definition H1 margin −57 bps YoY	Partially
Input-cost (yarn) squeeze "a check, not yet the story"	No quantified squeeze this quarter	Not quantifiable from filing; cost ratios up modestly — open for the call	Not observable
No fresh GST rate disruption (Oct 8 Council kept rates unchanged, per pre-call note, web-sourced, dated)	Policy unchanged	No GST exceptional in filing; penalties of Rs.0.03 Cr set aside on September 9, 2026	Played out

Read our full results preview.

Key Investment Insights

Key Positives

Revenue grew 2.36% YoY to Rs.269.37 Cr against a base quarter that declined 1.8%
H1 company-definition EBITDA of Rs.242.40 Cr grew 3.47% YoY with margin down only 57 bps to 42.47%
Ex-inventory-swing Q2 EBITDA was up 0.49% YoY (Rs.111.33 Cr vs Rs.110.79 Cr)
Finance costs fell 14.40% YoY to Rs.12.81 Cr; lease liabilities down Rs.46.61 Cr to Rs.410.98 Cr
FCF of Rs.107.24 Cr in H1 FY27 on capex of just Rs.0.89 Cr
Net worth grew 6.87% in half a year to Rs.2,099.20 Cr; balance sheet is net cash with no borrowings
Rs.189.00 Cr mutual-fund redemption proceeds received October 1, 2026, held in other financial assets

Risk Factors

PAT grew only 0.25% YoY (Rs.56.22 Cr) with EPS flat at Rs.2.31 while revenue grew 2.36%
P&L-derived EBITDA margin compressed 310 bps YoY to 39.00%
Other expenses grew 12.64% YoY vs revenue growth of 2.36%, indicating operating deleverage
Trade receivables rose 10.98% to Rs.722.65 Cr; CFO/PAT at 0.79x vs 0.88x in H1 FY26
Inventory build of Rs.8.87 Cr (233 bps of revenue) as a timing drag
CFO transition with successor not named ahead of November 14, 2026