Vedant Fashions Faces a Stitch in Time as Manyavar & Mohey Sales Unravel

Manyavar and Mohey's holding company Vedant Fashions is experiencing a sharp sales downturn, driven by fewer wedding dates, subdued consumer sentiment, and unprecedented competition in India's ethnic wear space. The company's market cap has fallen by nearly $2 billion in the past five months as the number of ethnic wear stores has tripled, driving competition and margin compression.

 

For the quarter ended March 2025, Vedant Fashions reported a 13% decline in net profit to ₹101 crore, even as revenue rose a scant 1% to ₹367 crore. Same-store sales growth slipped 4% in FY25, and net profit for the full year declined 6% to ₹388 crore. Higher expenses, including a 19% rise in raw material prices, also hit profitability.

 

The firm is countering with more stringent cost controls and selective store closures, but analysts are wary in the face of persistent macroeconomic headwinds.

 

Source: Economic Times, Business Standard, Fashion Network