Globe Enterprises (India) Ltd – Investor Presentation Summary

Key Operational Highlights

  • Development of seasonal fabric collections and customised fabric/garment specifications
  • New product development: Ladies Denim Dresses, Ladies Denim Tops, Garment Dyed Products and Men's Jackets
  • Continuous feeding of new designs and concepts to buyers' design teams
  • 3 lakh+ Sq. ft. manufacturing infrastructure across 5 manufacturing plants in Ahmedabad

Key drivers of operational performance: Integration of Globe Denwash for washing and finishing capabilities, product diversification, value-added offerings, and operational efficiency improvements.

Segment-wise Performance

Not Specified

Financial Highlights

Q2 FY27 Performance:

  • Revenue from Operations: ₹20,953.16 Lakhs (33.83% YoY growth)
  • Total Income: ₹21,028.35 Lakhs (32.62% YoY growth)
  • EBITDA: ₹1,176.15 Lakhs (24.50% YoY growth)
  • Profit Before Tax: ₹520.04 Lakhs (25.09% YoY growth)
  • PAT: ₹381.61 Lakhs
  • EPS (Diluted): ₹0.08 (20.00% decrease YoY)

H1 FY27 Performance:

  • Revenue from Operations: ₹39,404.64 Lakhs (29.26% YoY growth)
  • Total Income: ₹39,511.34 Lakhs (28.70% YoY growth)
  • EBITDA: ₹2,135.27 Lakhs (22.12% YoY growth)
  • Profit Before Tax: ₹889.78 Lakhs (34.27% YoY growth)
  • PAT: ₹673.04 Lakhs
  • EPS (Diluted): ₹0.15 (15.38% growth YoY)

Margins:

  • EBITDA Margin: Not specified for quarterly periods
  • PAT Margin: Not specified for quarterly periods

FY26 Annual Performance:

  • Revenue from operations: ₹64,240.14 Lakhs
  • EBITDA: ₹3,790.31 Lakhs (5.85% margin)
  • PAT: ₹914.71 Lakhs (1.41% margin)

Drivers of financial performance: Higher revenue growth, improved operational efficiency, and expanded product portfolio.

Key Risks: Volatile cotton and yarn prices, global trade uncertainties, rising raw material costs (cotton yarn prices increased 60% since start of 2026), higher packaging polymer prices (+50%), dyes & chemicals (+40%), paper prices (+10%), and rising labor costs.

Geographical Revenue Split

FY26 Performance:

  • Domestic Sales: ₹58,179.99 Lakhs (16.04% YoY growth)
  • Export Sales: ₹4,507.70 Lakhs (27.38% YoY growth)
  • Total Sales: ₹59,497.95 Lakhs

Regional Breakdown:

  • Domestic market: India - serving retailers, fashion brands, garment manufacturers, distributors and sourcing partners
  • International markets: Bangladesh, Vietnam, Southeast Asia, Europe, Russia, Sri Lanka, Gulf, West Africa

Balance Sheet Snapshot

As of H1 FY27:

  • Equity Share Capital: ₹9,008.38 Lakhs
  • Other Equity: ₹6,282.03 Lakhs
  • Total Equity: ₹15,290.41 Lakhs
  • Total Non-current Liabilities: ₹2,997.08 Lakhs
  • Total Current Liabilities: ₹27,694.13 Lakhs
  • Total Assets: ₹45,981.62 Lakhs
  • Inventories: ₹16,593.98 Lakhs
  • Trade Receivables: ₹21,580.24 Lakhs
  • Cash and Cash Equivalents: ₹10.91 Lakhs

Net Debt/Equity: Not Specified

Financial Health Insights: Increased borrowings (current borrowings ₹18,169.96 Lakhs vs ₹16,234.36 Lakhs in FY26), higher inventory levels, and growth in trade receivables.

Capex & Cash Flow Health

Capital Expenditure: Not Specified

Free Cash Flow: Not Specified

Operating Cash Flow: Not Specified

Net Debt Movement: Not Specified

Investment Rationale: Focus on capacity expansion, technology upgrades, and sustainable manufacturing practices.

Strategic & R&D Initiatives

Investments in Innovation: Zero Liquid Discharge (ZLD) systems, water recycling and reuse, automated chemical and water dosing, rooftop solar power, environmentally responsible processing practices, responsible chemical management.

Expected impact on growth: Positioning as single partner providing fabric development through finished garments under one roof, turning customer relationships into deeper, higher-value partnerships.

Strategic Rationale: Expanding into high-growth markets, reducing operational costs through vertical integration, and diversifying into technical textiles and chemicals.

Industry Trends & Business Environment

Macro/Industry Trends: Textile industry witnessing cautious recovery with improving export demand, challenges from volatile cotton and yarn prices, global trade uncertainties, competitive position of Bangladesh in apparel exports, restrictions on Indian cotton yarn imports in Bangladesh, cotton output decreased 17% in 2025-26 vs 2020-21, organized share of apparel retail growing 10-13% annually reaching 41%.

Impact on Company: Rising input costs squeezing margins, procurement challenges due to cotton shortage, need for stable cotton and yarn prices, opportunity from growing branded apparel market and organized retail expansion.

Management Commentary & Growth Outlook

Strategic Outlook: "We aim to strengthen our presence across and fashion and apparel value chain" - Mr. Bhavin Parikh, CEO & CFO

FY Guidance: Not Specified

Market Share Targets: Not Specified

Risks and Opportunities: Exploring emerging segments such as technical textiles and chemicals, strengthening presence across domestic and international fashion and apparel markets, disciplined expansion, innovation, financial prudence and long term value creation.

ESG Updates

Sustainability Initiatives: Zero Liquid Discharge (ZLD) facility certification, ZDHC responsible chemical management certification, OEKO-TEX textile and product safety certification, SEDEX membership and responsible sourcing framework, water recycling and reuse, rooftop solar power, environmentally responsible processing practices.

Certifications and Affiliations

  • ATIRA – ZLD facility certification
  • ZDHC – Responsible chemical management certification
  • OEKO-TEX – Textile and product safety-related certification
  • SEDEX – Membership and responsible sourcing framework
  • Apparel Export Promotion Council (AEPC)
  • Federation of Indian Export Organisations (FIEO)
  • Synthetic & Rayon Textiles Export Promotion Council