Downgrades

ABLBL reported a modest 4% YoY revenue growth (vs. 11% for Arvind Fashion) in 2QFY26, as strong 12% LTL retail growth was offset by the adverse impact from recent store rationalization and GST-related transition on wholesale primary sales.

Vedant Fashion’s (VFL) 2Q performance was impacted by GST-linked dispatch disruptions, creating a ~6% delta between primary and secondary sales. However, the company has been struggling to revive growth sustainably, with its 1HFY26 revenue tracking 5% below 1HFY23 levels.

Ethos’s Q4 EBITDA is in-line, with margin up by 80bps offsetting the 6% miss on revenue. Despite this, revenue growth was a decent 23%/25% in Q4/FY25, led by SSG of 17.4% in FY25 and by new store additions.

We maintain our BUY rating on the stock

Landmark Cars’ (LMC) EBITDAM at 5.6%, was down 20bps QoQ, led by weaker gross margins as service revenues at new outlets is in ramp-up phase.

Vedant Fashions (VFL) reported a muted performance in 3QFY25, with YoY flat EBITDA and PAT (11-12% miss) due to weak SSSG (2.6%) and higher other expenses.

Ethos’s Q2 EBITDA was ~13% lower than estimate, led by a 250bps margin miss on account of INR depreciation and growth investments (higher store addition).

We recommend a BUY rating on the stock with a near-term TP of Rs 2577/share, implying an upside of 10% from the CMP.

2QFY24 result was weak, impacted by higher base, shift in festivals to 3Q and lower number of wedding days due to Adhika-masa (18th July to 16th Aug – once in a 3-year event). As per dhrik-panchang, there were no wedding days in 2QFY24 vs 6 in 2QFY23.

Result was weak, impacted by significantly lower number of wedding days. Steep decline in SSSG (-22% YoY) compared to 22% higher retail area is concerning. This is the steepest decline in SSSG compared to other retail companies that have reported 1Q results so far.