EBITDA stood at Rs 31 crore in Q1 FY26, registering de-growth of 7% compared with Rs 33.4 crore in Q1 FY25. EBITDA margin contracted 100 bps to 25.9% in Q1 FY26 from 26.9% in Q1 FY25.

Mufti added 3 new Exclusive Brand Outlets (EBOs) on a net basis in Q1 FY26, bringing the total store count to 444 as of 30th June 2025.

Kamal Khushlani, chairman & MD, Credo Brands Marketing, said, “During the quarter, revenues remained steady at approximately ₹120 crores, reflecting the continued softness in discretionary spending, particularly across Tier 2 and Tier 3 markets, where consumer sentiment remains muted.

We at MUFTI, are entering into a phase of transformation, which is anchored by our vision to position the brand firmly within the premium segment of the Indian apparel market. To make MUFTI's brand transformation visible and experiential for consumers, we have developed an entirely new store design and identity to deliver a shopping experience that enables customers to experience the style and quality of the MUFTI brand.

As part of this strategy, we are accelerating the transformation of our retail footprint by opening 20 odd premium flagship stores in FY26, and closing underperforming stores. These flagship stores will open in key high-potential markets, enhancing our presence in premium and luxury malls and high-street locations. This retail network transformation and rationalization will be continued in FY27 also.

These efforts are aimed at elevating brand perception, increasing footfalls, and reignite the consumer excitement for brand MUFTI. We are also intensifying our Digital marketing where our strategic partnership with Google and Meta, which initiated last year, is now reaching an inflection point. We are scaling content creation and increasing marketing investments to effectively communicate MUFTI’s transformation

These investments made by us to position and strengthen the MUFTI brand within the premium fashion segment are deliberate investments to realize full potential of the brand. These decisions have been taken after seeing some early success in relocated premium retail locations and digital engagement activity. We realize that these efforts will impact our cost structures and also lead to an increase in rental costs for premium locations. However, these are strategic investments essential for building long-term brand value, sustaining growth, and enhancing profitability.

Advertising and marketing spend as a percentage of revenue to increase to 6–7% in FY26 and to 8-10 % in FY27 because of these initiatives. But we anticipate the benefits of these efforts to begin materializing from FY28 onwards, by which time advertising and marketing spends are expected to stabilize.”

Credo Brands Marketing (MUFTI) is a prominent player in the men’s casual wear in India. The company offers wide range of product, including shirts to t-shirts to jeans to chinos, catering to all year-round clothing.