According to Motilal Oswal's research report dated July 27, 2026, the brokerage has recommended a Neutral rating on Vedant Fashions with a target price of ₹460. The target price represents an increase from the earlier target of ₹440, reflecting a more optimistic outlook on the company's prospects.
As reported by Motilal Oswal, Vedant Fashions delivered a decent first quarter of FY27 with approximately 3.4% year-on-year and 7% year-on-year growth in customer sales and revenue respectively. Despite facing challenges from the absence of weddings for a month due to Adhikmaas, the company managed to maintain steady growth momentum in its core business segments.
According to the research report, Vedant Fashions experienced a gross margin contraction of approximately 125 basis points year-on-year, which was primarily attributed to GST rate changes. However, the company demonstrated strong operational efficiency with reported EBITDA growing 9% year-on-year, representing a 12% beat against expectations. The margin expansion of approximately 60 basis points was aided by robust cost control measures implemented across the organization.
As stated in the Motilal Oswal report, the brokerage has maintained its Neutral stance with a revised target price of ₹460, up from the previous target of ₹440. The valuation is based on 25x September 2028 estimated earnings per share, representing an earlier timeline than the previously used June 2028 estimate. Motilal Oswal indicated that it awaits evidence of sustainable demand recovery and earnings acceleration before turning more constructive on the stock.
