Manyavar maker Vedant Fashions struggles to revive growth as same-store sales drop 5.8% in Q2

Mumbai: India's organised ethnic wear market has become more competitive just as Vedant Fashions, the maker of Manyavar and Mohey, tries to revive growth after several years of muted performance. The company reported a 5.8% decline in same-store sales in the September quarter. Customer sales inched up 0.6% year-on-year while revenue from operations increased 2.4% to ₹269 crore and net profit was flat at ₹56 crore.

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. "The best 10 days were replaced by almost the worst 10 days in our business from a quarter perspective," he said on an earnings call last week.

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He acknowledged the urgent need to attract newer consumers and make them buy more. "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," he added.

The slowdown, however, predates the calendar shift. Vedant Fashions' revenue grew at a compound annual rate of only about 2.7% between 2022-23 and 2025-26, while its market capitalisation has fallen about 49% since listing, to ₹11,597 crore this month, erasing about ₹11,119 crore in market value.

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Third Eyesight founder Devangshu Dutta, said demand moderation had affected the wider market but company-specific expansion decisions also mattered. "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," he said.