Credo Brands Marketing Limited — Q3 FY26
Credo Brands reported a muted Q3 FY26 with revenue of 146.1 cr (down ~6% YoY) and PAT of 7 cr, impacted by cautious consumer sentiment and a weak festive season.
bearish
high
✓ Verified against BSE filing
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
59%Questions answered4Evaded / deflected11Questions auditedMixedNumbers vs filing
Evasive
High priority
Why increase ad spend to 8-10% of revenue when revenues are falling?
Asked by Gunit Singh, Counter Cyclical PMS
Management justified spend as necessary for premium repositioning but gave no specific expected revenue or profit impact.
no revenue growth commitmentdefers to long-termno specific outcome given
Read the exchange
Question
So for the previous 9 months we have increased the spend uh to about 5% of the revenues but we haven't seen any uh but they don't reflect in the numbers the venues have gone down despite stores opening... we plan to take it uh up to about 8 to 10% of total revenues.
Management (name not stated)
So uh Gonit uh the thing is that the brand has undergone transformation again and is moving towards a premium position... for the next couple of years for sure we are going to be spending 8 to 10 odd% of our revenue.
Evasive
High priority
What positive signs justify the pivot to high ad spend?
Asked by Gunit Singh, Counter Cyclical PMS
Management did not cite any concrete positive signs, only reiterated that spending is from profits.
no specific positive signs citedrepeats general rationale
Read the exchange
Question
what kind of positive signs are we seeing because I mean if we consider our business earlier where the spends were limited... we were growing year on year we were having comfortable margins. So I mean why the pivot to such high spends?
Management (name not stated)
Sure Gonit uh it is certainly going well and we will still be spending from our profits only. It's not that we are going to uh hit our bottom line or take it into the negative.
Partial answer
High priority
Why is revenue not growing despite premium stores and higher ASP?
Asked by Nilles Doshi, Prospero Tree
Management gave a forward EBITDA margin target but did not explain why revenue is not growing despite premium stores.
defers to year-endno direct revenue growth explanation
Read the exchange
Question
Sir the profit may be impacted maybe due to the advertisement cost but our GP margin is lower and our revenue is also regrowing on quarter on quarter sorry on a Y bas. So if we are opening a premium store naturally we are selling the premium product... why the our revenue is not growing?
Management (name not stated)
So at this you should not be looking at our business on a quartarter basis. I have even said that in the past by the end of the year this should the EITA should come to around 25 odd percent by end of Q4 and also our uh our GP margin will be sustained.
Answered
High priority
Will revenue be maintained from Q4 onward?
Asked by Nilles Doshi, Prospero Tree
Management gave a specific quantitative guidance: revenue will be 5-6% lower than last year by year-end.
Read the exchange
Question
So what about the revenue will we maintain the from quarter 4 onward the can we maintain the revenue as earlier or further it will go down?
Management (name not stated)
No no it won't further go down but by at the end of the year we we might be five to 6% lower than last year.
Evasive
Medium priority
How will MUJI become an overnight sensation against new brands?
Asked by Rahil, Sapphire Capital
Management did not provide a concrete strategy to compete with new brands, only spoke about changing perceptions.
no specific plangeneric brand-building language
Read the exchange
Question
How will you make MUI an overnight sensation? So for example recently I've been hearing a lot from uh friends and other people that they are into rare rabbit and you know similar brands.
Management (name not stated)
this is exactly what we are looking to do Rael people have a overhang of the brand from the past and with whatever changes that we are making it's important to communicate and change people's perceptions about the brand...
Evasive
High priority
How will growth profile change over 3 years with higher ad spend?
Asked by Deepan Shankara Narayan, Trust Line Holdings Private Limited
Management acknowledged change but refused to give any quantitative growth outlook.
no numbers committeddefers to long-term
Read the exchange
Question
how do we see the growth profile of the ch uh company changing over next 3 years considering uh uh the substantial increase in uh ad promotion and spend strategy.
Management (name not stated)
Certainly certainly we see it changing over the long term. But however as we have mentioned earlier for the next couple of years uh we are not going to commit on numbers...
Answered
High priority
What was gross sales growth this quarter adjusting for returns and GST?
Asked by Deepan Shankara Narayan, Trust Line Holdings Private Limited
Management clearly stated revenue declined 6% in the quarter.
Read the exchange
Question
specific to this quarter, what is the kind of grass sales growth we had seen adjusting for sales return discounts and this BS impact?
Management (name not stated)
We have not seen any growth in the revenue. In fact, the in the quarter has regrown around 6%.
Answered
High priority
How are sales in Q4 so far? Any improvement from previous quarter?
Asked by Adita Warha, Synergy Investments
Management confirmed sales remain muted and reiterated full-year guidance of 5-6% decline.
Read the exchange
Question
my question is on the quarter four now. we are already sitting in mid of uh February. How do you see the sales happening and uh is there some uh improvement from the previous quarter?
Management (name not stated)
So uh as I mentioned earlier uh Adita uh at the end of the year uh we should be at uh at about five or 6% lower than last year's uh sale numbers. So it continues to be muted.
Answered
Medium priority
What are store opening and closing plans for coming quarters?
Asked by Ashi, Marhon Investment Advisors
Management provided specific store opening and closing numbers for the current and next quarter.
Read the exchange
Question
I wanted to understand uh how do what are the plans going forward in terms of the number of stores being uh planned to be open opened in the coming few quarters and uh the closing as well.
Management (name not stated)
So Ashi currently we have uh in 9 months we have opened 27 uh new stores and closed 22 stores. That's a net addition of five. However, in the next uh quarter we shall be uh we shall be closing 21 stores and adding 15 new doors...
Answered
Medium priority
Are YouTube/Instagram ad views converting into sales?
Asked by Tanma, Growth Infinity
Management gave a specific 87% growth in website business, indicating conversion.
Read the exchange
Question
are you able to see some uh uh means green sprouts coming up and with those advertisement means the large number of views that are coming are they converted into real-time sales on websites or on offline uh basis?
Management (name not stated)
Yes. Yes. on the website our business has grown by 87% over the uh last year same quarter and definitely we are seeing an improvement in that...
Answered
Medium priority
How many premium stores by end of Q4?
Asked by Tanma, Growth Infinity
Management gave a clear target of 20 new identity stores by Q4 end.
Read the exchange
Question
as for now we have 12 premium stores. So by the end of quarter 4 uh can we expect it to reach by 20 or 15 16 in the number?
Management (name not stated)
End of Q4 there will be 20 new uh new identity stores out of which 15 will be uh new stores and five will be renovated stores.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Revenue declined 6% in Q3 | -6% | -6.3% | Matches filing |
| Full-year revenue will be 5-6% lower than last year | -5.5% | -6.3% | Matches filing |
| EBITDA margin target of ~25% by Q4 | 25% | 22.9% | Overstated vs filing |
| Website business grew 87% YoY | 87% | -6.3% | Overstated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.