Quarterly Financial Performance (Consolidated)

Q2 FY27 Results:

  • Revenue from operations: ₹507 crore, increased 26.9% YoY (Q2 FY26: ₹399 crore)
  • EBITDA (excluding other income): ₹51 crore, increased 26.6% YoY (Q2 FY26: ₹40 crore)
  • EBITDA margin: 10.0%, remained flat YoY (-2 bps)
  • Other income: ₹1 crore, increased 122.3% YoY
  • Depreciation and amortization: ₹4 crore, decreased 31.7% YoY
  • Finance costs: ₹13 crore, decreased 4.4% YoY
  • Profit Before Tax (PBT): ₹34 crore, increased 65.3% YoY (Q2 FY26: ₹21 crore)
  • PBT margin: 6.8%, improved by 158 bps YoY
  • Share of loss of associate: ₹(3) crore (Q2 FY26: ₹(5) crore loss)
  • Tax expense: ₹9 crore, increased 47.9% YoY
  • Reported Profit After Tax (PAT): ₹22 crore, increased 124.4% YoY (Q2 FY26: ₹10 crore)
  • Adjusted PAT (excluding associate loss): ₹25 crore, increased 72.8% YoY
  • Adjusted PAT margin: 5.0%, improved by 132 bps YoY

Half-Yearly Financial Performance (Consolidated)

H1 FY27 Results:

  • Revenue from operations: ₹880 crore, increased 29.5% YoY (H1 FY26: ₹679 crore)
  • EBITDA (excluding other income): ₹87 crore, increased 29.2% YoY (H1 FY26: ₹67 crore)
  • EBITDA margin: 9.9%, remained flat YoY (-2 bps)
  • Other income: ₹2 crore, increased 112.3% YoY
  • Depreciation and amortization: ₹9 crore, decreased 32.6% YoY
  • Finance costs: ₹24 crore, decreased 1.5% YoY
  • Profit Before Tax (PBT): ₹56 crore, increased 82.9% YoY (H1 FY26: ₹31 crore)
  • PBT margin: 6.4%, improved by 187 bps YoY
  • Share of loss of associate: ₹(2) crore (H1 FY26: ₹(6) crore loss)
  • Tax expense: ₹14 crore, increased 55.7% YoY
  • Reported Profit After Tax (PAT): ₹40 crore, increased 158.2% YoY (H1 FY26: ₹16 crore)
  • Adjusted PAT (excluding associate loss): ₹42 crore, increased 94.7% YoY
  • Adjusted PAT margin: 4.7%, improved by 159 bps YoY

Balance Sheet Position (Consolidated)

As on 30 September 2026:

  • Net Fixed Assets: ₹154 crore (30 Sep 2025: ₹151 crore; 31 Mar 2026: ₹150 crore)
  • Capital Work-in-Progress: ₹23 crore (30 Sep 2025: ₹3 crore; 31 Mar 2026: ₹12 crore)
  • Total Non-Current Assets: ₹221 crore (30 Sep 2025: ₹221 crore; 31 Mar 2026: ₹197 crore)
  • Inventories: ₹781 crore (30 Sep 2025: ₹670 crore; 31 Mar 2026: ₹688 crore)
  • Trade Receivables: ₹262 crore (30 Sep 2025: ₹244 crore; 31 Mar 2026: ₹273 crore)
  • Cash & Bank Balance: ₹148 crore (30 Sep 2025: ₹96 crore; 31 Mar 2026: ₹103 crore)
  • Other Current Assets: ₹109 crore (30 Sep 2025: ₹97 crore; 31 Mar 2026: ₹98 crore)
  • Total Current Assets: ₹1,299 crore (30 Sep 2025: ₹1,107 crore; 31 Mar 2026: ₹1,162 crore)
  • Total Assets: ₹1,520 crore (30 Sep 2025: ₹1,328 crore; 31 Mar 2026: ₹1,359 crore)
  • Equity Share Capital: ₹13 crore (unchanged)
  • Other Equity: ₹516 crore (30 Sep 2025: ₹470 crore; 31 Mar 2026: ₹474 crore)
  • Total Equity: ₹529 crore (30 Sep 2025: ₹483 crore; 31 Mar 2026: ₹487 crore)
  • Total Borrowings: ₹601 crore (30 Sep 2025: ₹500 crore; 31 Mar 2026: ₹532 crore)
  • Other Liabilities: ₹390 crore (30 Sep 2025: ₹345 crore; 31 Mar 2026: ₹339 crore)
  • Total Liabilities: ₹991 crore (30 Sep 2025: ₹845 crore; 31 Mar 2026: ₹871 crore)

Business Highlights and Operational Updates

  • Achieved highest ever quarterly revenue of ₹507 crore in Q2 FY27
  • Record quarterly EBITDA exceeding ₹50 crore
  • Net Profit nearly doubled for H1 FY27
  • Continued strong traction with marquee global customers
  • Reinforced position as trusted strategic manufacturing partner to leading international brands
  • Enhanced production lines across leather & accessories divisions
  • Launched state-of-the-art sampling & product development centre
  • Healthy order visibility supported by deeper customer engagement and new program wins
  • ROCE expanded by 320 bps
  • Net Working Capital reduced by 24 days

Business Segments and Revenue Mix

Outerwear Division:

  • India's leading leather outerwear exporter for over 3 decades
  • 100+ global customer relationships
  • Proprietary in-house design capabilities
  • In-house tannery with LWG (Leather Working Group) Gold Rating
  • Textile outerwear segment focusing on fabric & PU outerwear

Bags & Accessories Division:

  • Leather bags, belts, wallets & small leather goods
  • Strong product development across styles, materials and constructions
  • Capability in handling diverse leathers, textures, finishes

Apparel Division:

  • Asset-light model with strategic manufacturing partnerships
  • Broad apparel portfolio across tops, shirts, children-wear, dresses
  • Multi-country sourcing from India, China, Bangladesh & Türkiye

Growth Strategy and Future Outlook

Capacity Expansion Plans:

  • Leather outerwear: ~40% capacity expansion over 2 years; capex of ₹25-30 crore
  • Textile outerwear: 2-3x revenue ambition through doubling output capacity; greenfield capex of ₹35-40 crore planned
  • Accessories: Brownfield expansion to enhance capacity upto 2-3x; capex of ₹35-40 crore

Revenue Growth Targets:

  • ₹120 crore capex supporting ₹1,000 crore incremental revenue potential
  • Targeting 25% growth through design-led value addition
  • Targeting 100-200 bps overhead optimisation across categories
  • Targeting 100-150 bps gross margin improvement
  • Global brand expansion targeting US$10mn incremental revenue from new customers
  • Customer wallet expansion targeting ~US$20mn revenue potential from existing relationships
  • Cross-category expansion targeting US$10-15mn revenue potential

Capital Efficiency Targets:

  • Targeting 20%+ ROCE
  • ₹8-10 incremental sales per ₹1 of capex incurred
  • Targeting 30-50 days improvement in working capital over next 3 years
  • Targeting doubling of ROCE

Global Presence

Operations across India, Italy, United Kingdom, China, Hong Kong, Switzerland, and Bangladesh.