Credo Brands cuts margins as Mufti 2.0 pivot shifts growth to FY28

Credo Brands Marketing is hitting pause on its growth trajectory. The company reported flat FY26 revenue of ₹592 crore, but the forward-looking commentary is more corrective than the numbers suggest. Management downgraded its FY27 EBITDA margin target to 23-24%—a sharp drop from the 26% reported for FY26. This margin compression is the direct cost of an aggressive pivot to the 'Mufti 2.0' identity, which demands advertising spend equivalent to 8-10% of revenue. More importantly, management has scrapped growth plans for the current fiscal year. With underperforming stores facing the axe in favor of premium-format locations, FY27 is now a transition year. Investors looking for a return to growth will have to wait until at least FY28. The strategy is clear: Credo is spending cash now to force a brand premium, leaving little room for margin or top-line gains in the interim.