Vedant Fashions, the maker of Manyavar and Mohey brands, reported a 5.8% decline in same-store sales during the September quarter. According to reports from The Economic Times, customer sales increased by only 0.6% year-on-year, while revenue from operations grew 2.4% to ₹269 crore. Net profit remained flat at ₹56 crore during the quarter. Chief Revenue Officer Vedant Modi acknowledged the urgent need to attract newer consumers and make them buy more, stating that "The only thing that we need to do slightly better is newer customers making more buys. If that part of the business is cracked, then we get back to a very good level of growth."
Chief Revenue Officer Vedant Modi attributed much of the quarter's weakness to the shift in the festive calendar, with Navratri moving from September last year to October this year. As reported by The Economic Times, Modi stated that "The best 10 days were replaced by almost the worst 10 days in our business from a quarter perspective." The slowdown, however, predates the calendar shift, with the company's revenue growing at a compound annual rate of only 2.7% between 2022-23 and 2025-26. The company faces mounting competition in India's organised ethnic wear market, which has become more competitive just as Vedant Fashions tries to revive growth after several years of muted performance.
The current slowdown represents a continuation of challenges that have persisted over several years. According to The Economic Times, Vedant Fashions' revenue grew at a compound annual rate of only 2.7% between 2022-23 and 2025-26. The company's market capitalisation has fallen approximately 49% since listing, to ₹11,597 crore this month, erasing about ₹11,119 crore in market value. Industry experts note that demand moderation has affected the wider market, but company-specific expansion decisions also matter, with some brands overextending and opening stores that may not be sustainable.
Third Eyesight founder Devangshu Dutta highlighted that demand moderation had affected the wider market but emphasized that company-specific expansion decisions also mattered. As reported by The Economic Times, Dutta noted that "There are cases where brands have overextended and opened stores that are not going to be sustainable. If you over-expand, there has to be a correction. Sometimes brands overreach to show momentum in the market." The expert analysis suggests that while market conditions play a role, individual brand strategies and expansion decisions significantly impact performance outcomes in the competitive ethnic wear segment.
