Credo Brands Marketing Shares up 7% Repots; ₹47.42 Cr Annual Profit, Recommends ₹2 Dividend

Synopsis: Credo Brands Marketing Limited, the parent of the popular menswear label Mufti, reported audited standalone financial results for FY26 on May 21, 2026. The company posted a net profit of Rs. 47.42 crore for the full year, declared a final dividend of Rs. 2 per share, and approved the re-appointment of founder Kamal Khushlani as Chairman and Managing Director for another five-year term.

In a regulatory filing on May 21, 2026, Credo Brands Marketing Limited disclosed that its Board of Directors had approved audited standalone financial results for the quarter and financial year ended March 31, 2026. The results, reviewed by the Audit Committee and stamped with an unmodified opinion by statutory auditors MSKC & Associates LLP, paint a picture of a company navigating a challenging consumption environment while maintaining operational resilience.

For the full financial year FY26, the company reported total revenue from operations of Rs. 592.10 crore, a notable decline from Rs. 618.18 crore in FY25, a year-on-year dip of approximately 4.2%. Despite the revenue pressure, the company delivered a net profit after tax of Rs. 47.42 crore for FY26, compared to Rs. 68.41 crore in FY25, reflecting tighter margins as operating costs, particularly purchases of stock-in-trade at Rs. 241.41 crore and other expenses at Rs. 155.88 crore, weighed on the bottom line.

The Q4 FY26 standalone quarter, however, told a more encouraging story. Revenue from operations for the March quarter came in at Rs. 162.30 crore, up from Rs. 153.21 crore in Q4 FY25, representing a healthy sequential and year-on-year uptick. Net profit for Q4 FY26 stood at Rs. 15.23 crore, versus Rs. 13.83 crore in the same quarter last year, a growth of over 10% signaling that the business may be recovering momentum heading into FY27.

A notable one-time impact during FY26 was an exceptional item of Rs. 1.40 crore related to past service cost on gratuity obligations, triggered by the Central Government’s New Labour Codes that came into effect on November 21, 2025. Under the revised framework, gratuity is now to be calculated based on wages constituting at least 50% of total remuneration, and the company has recognised the resulting incremental obligation upfront in line with Ind AS 19.

The Board has recommended a final dividend of Rs. 2 per equity share of face value Rs. 2 each for FY26, subject to shareholder approval at the forthcoming Annual General Meeting. This translates to a 100% dividend on face value, sustaining the company’s track record of rewarding shareholders.

On the balance sheet, total assets grew to Rs. 801.93 crore as of March 31, 2026, from Rs. 769.23 crore a year ago. Total equity stood at Rs. 438.60 crore, up from Rs. 410.18 crore, reflecting retained earnings.

Cash and cash equivalents improved meaningfully to Rs. 52.45 crore from Rs. 45.23 crore, and the company generated operating cash flow of Rs. 132.34 crore for FY26. Notably, the company has zero long-term borrowings as of March 2026, having fully repaid its oustanding debt, a significant positive for investor confidence.

Ahead of and following the results announcement, MUFTI shares have been trading with moderate volumes on both NSE and BSE. The stock had faced pressure through much of FY26 amid a broader slowdown in discretionary spending, which is reflected in the full-year revenue decline. Investors will now closely watch management commentary on recovery in same-store sales growth, channel expansion, and whether the strong Q4 rebound translates into sustained momentum in Q1 FY27.

Shares of Credo Brands Marketing Limited, which operates the Mufti label, surged over 13% on Friday to Rs. 93 after the company announced its Q4 and FY26 results along with a final dividend recommendation. The stock touched an intraday high of Rs. 94.40 and emerged among the top gainers on the NSE amid strong buying interest.

Company Overview

Credo Brands Marketing Limited, formerly known as Credo Brands Marketing Private Limited, is the company behind the iconic menswear label Mufti — launched in 1998. Headquartered in Mumbai, the company retails men’s casual wear through an extensive network of exclusive brand outlets, multi-brand outlets, and e-commerce channels across India. It operates as a single business segment and has no subsidiaries, associates, or joint ventures. The company is listed on both BSE and NSE and is led by its founder and promoter, Mr. Kamal Khushlani

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