Mrs Bectors Food vs Vedant Fashions Q3 FY26

Mrs. Bectors reported Q3 FY26 revenue of INR 533.3 Cr (+8.4% YoY), with EBITDA margin expanding 44 bps to 12.8%. Biscuits grew 5.7% (impacted by GST 2.0 transition and US tariff uncertainty), while bakery (English Oven) delivered 13.2% growth led by strong brand momentum. PAT rose 10.1% to INR 38.1 Cr. Management guided for mid-teens revenue growth in FY27, driven by export recovery (US tariff cut from 50% to 18%), English Oven geographic expansion (Kolkata, Hyderabad, Capoli plant commissioning), and domestic biscuit improvement targeting low-teens growth. EBITDA margin is expected to reach 14% by H1 FY27. Key risk: export incentive suspension may take 4-5 months to fully offset via duty-free imports, pressuring near-term margins.

Guidance read

Mid-teens revenue growth in FY27: Management expects overall revenue growth to reach mid-teens in FY27, driven by export recovery, English Oven expansion, and domestic biscuit improvement. EBITDA margin target of 14% by H1 FY27: Management targets EBITDA margin of 14% in the first half of FY27, up from 12.8% in Q3 FY26, aided by mix improvement and export incentive normalization. Domestic biscuit growth to low teens in FY27: Domestic biscuit business expected to achieve low-teens growth in FY27, driven by distribution expansion and premium product launches. Capoli plant commissioning in next few months: The Capoli plant (breads: 1.32 lakh/day, buns: 1 million/day) will be commissioned in the next few months, enhancing capacity for Maharashtra and Bombay expansion.

Risk read

Key risks include Export incentive suspension impact — The government suspended export incentives from August, impacting EBITDA margin by ~1% of revenue. Management expects to offset via duty-free imports in 4-5 months, but full recovery is uncertain.; Intense competition in domestic biscuits — The domestic biscuit market remains highly competitive with large national and regional players. Management expects low-teens growth but execution risks persist.; US trade deal uncertainty — While the India-US trade deal reduces tariffs from 50% to 18%, final terms are unclear until March. Further reductions to zero could be a tailwind, but any reversal would hurt exports.; B2B bakery growth slowdown — B2B bakery (QSR) grew only mid-single digits in Q3 due to macro demand weakness. Recovery depends on QSR store expansion and new customer additions, which may take time..

Promise ledger

Scorecard data is being built as historical quarters are processed.

Vedant Fashions reported Q3 FY26 revenue of ₹492 crore with EBITDA margin of 27.4% and PAT of ₹135 crore. Performance was significantly impacted by a calendar shift: only 3 wedding dates in December vs 6 last year, and zero in January vs 11 last year. Management highlighted muted middle-class consumer sentiment as a key headwind, while premium brand 'To' posted 40% growth with 12% SSG. The company continued its strategic focus on retail quality over quantity, closing smaller stores and pausing aggressive expansion. Gross margin compression of ~65.7% was attributed to GST rate hikes (12% to 18%) not fully passed on. Management expects store expansion to normalize in 2-3 quarters. Risk: sustained weak consumer sentiment could delay recovery despite internal initiatives.

Guidance read

Gross margin target of 65%+: Management reiterated confidence in achieving gross margins above 65% going forward, with GST impact expected to normalize. Store expansion normalization in 2-3 quarters: Management expects the current consolidation phase to end in the next 2-3 quarters, after which store additions will resume at a normalized pace. Accelerate To brand store expansion: Management plans to scale the premium To brand faster in the near future, given its strong performance.

Risk read

Key risks include Sustained weak middle-class consumer sentiment — Management acknowledged that muted consumer sentiment, especially in the middle class, has been a key drag on performance and may persist.; Competition from organized and unorganized players — Analysts raised concerns about market share loss to competitors like Manyavar and others; management downplayed but noted industry consolidation.; GST rate hike impact on margins and demand — The GST increase from 12% to 18% on 90% of products compressed gross margins and may affect consumer demand if not fully absorbed.; Store consolidation may weigh on near-term revenue — Ongoing closure of smaller stores and pause in expansion could limit top-line growth until normalization in 2-3 quarters..

Promise ledger

Scorecard data is being built as historical quarters are processed.