Financial Performance - Q2 FY27

  • Revenue from Operations: ₹30.7 Crore (0.6% YoY growth from ₹30.5 Cr in Q2 FY26)
  • EBITDA: ₹3.1 Crore (404.0% YoY growth from ₹0.6 Cr)
  • EBITDA Margin: 10.1% (809 bps improvement from 2.0% in Q2 FY26)
  • Profit Before Tax: ₹3.3 Crore (150.3% YoY growth from ₹1.3 Cr)
  • PBT Margin: 10.8% (643 bps improvement from 4.3%)
  • Profit After Tax: ₹2.5 Crore (228.1% YoY growth from ₹0.8 Cr)
  • PAT Margin: 8.2% (565 bps improvement from 2.5%)
  • Diluted EPS: ₹1.11 (226.5% YoY growth from ₹0.34)

Financial Performance - H1 FY27 (Half Year Ended September 30, 2026)

  • Revenue from Operations: ₹62.9 Crore (1.5% YoY decline from ₹63.9 Cr in H1 FY26)
  • EBITDA: ₹4.2 Crore (819.2% YoY growth from ₹0.5 Cr)
  • EBITDA Margin: 6.7% (596 bps improvement from 0.7%)
  • Profit Before Tax: ₹10.9 Crore (134.5% YoY growth from ₹4.7 Cr)
  • PBT Margin: 17.4% (1008 bps improvement from 6.9%)
  • Profit After Tax: ₹9.6 Crore (168.8% YoY growth from ₹3.6 Cr)
  • PAT Margin: 15.3% (970 bps improvement from 5.2%)
  • Diluted EPS: ₹4.28 (169.2% YoY growth from ₹1.59)

Balance Sheet Position (as of September 30, 2026)

  • Total Equity: ₹140.3 Crore (vs ₹130.7 Cr as of March 31, 2026)
  • Equity Share Capital: ₹11.3 Crore (unchanged)
  • Other Equity: ₹129.0 Crore (vs ₹119.4 Cr)
  • Total Assets: ₹174.9 Crore (vs ₹161.9 Cr)
  • Current Assets: ₹154.8 Crore (includes Investments ₹77.5 Cr, Inventories ₹29.3 Cr, Trade Receivables ₹12.4 Cr, Cash & Cash Equivalents ₹6.9 Cr, Other Bank Balances ₹16.6 Cr)
  • Non-Current Assets: ₹20.1 Crore (includes Property, Plant & Equipment ₹11.1 Cr, ROU Assets ₹3.1 Cr, Investments ₹4.3 Cr)
  • Total Liabilities: ₹34.6 Crore (Non-Current ₹6.8 Cr, Current ₹27.8 Cr)

Cash Flow Statement - H1 FY27

  • Cash Generated from Operations: ₹20.2 Crore
  • Direct Taxes Paid: ₹2.9 Crore
  • Net Cash from Operating Activities: ₹17.3 Crore
  • Net Cash from Investing Activities: -₹25.4 Crore (outflow)
  • Net Cash from Financing Activities: ₹3.1 Crore
  • Net Decrease in Cash: ₹5.0 Crore
  • Cash & Cash Equivalents at Period End: ₹6.9 Crore

Operational Highlights

  • Capacity: 18 lakh garments per annum across 3 manufacturing facilities in Salem, Tamil Nadu
  • Capacity Utilization: 65% in FY26, targeting ~70% in FY27
  • Workforce: 1,200+ skilled employees
  • Export Focus: 97% of revenue from exports to 15+ countries
  • Customer Retention: 100% customer retention rate
  • Product Mix: Bottomwear, Outerwear, Kidswear (Overalls, Utility Jackets, Parkas, Overshirts, Swim Shorts)
  • Business Model: Integrated manufacturing with in-house washing & embroidery capabilities

Strategic Initiatives

  • Capacity Expansion: Planning phased capex of ₹40-50 crore funded through internal accruals to double annual manufacturing capacity by FY30
  • Product Diversification: Expanding into women's wear and athleisure segments
  • Geographic Expansion: Exploring additional manufacturing locations beyond Salem
  • Margin Improvement: Targeting high-teen EBITDA margins through operational efficiencies and premiumization

Management Commentary

Chairman & Managing Director Mr. Ashutosh Goenka stated that H1 FY27 marked a meaningful operating recovery with Q2 EBITDA margins reaching 10.1%. The sequential decline in PAT was primarily due to mark-to-market movements in forex hedges and investments rather than operational deterioration. The company prioritized customer retention during tariff-related disruptions and expects to complete shipments of finished goods held at half-year end in the current quarter.

Historical Financial Context

  • 5-year average ROCE: 37.4% (FY26: 12.2%)
  • 5-year average ROE: 29.9% (FY26: 8.4%)
  • 6-year average EBITDA margin: 13.0% (FY26: 7.2% due to tariff uncertainty and customer discounting)
  • FY25 PAT margin of 23.5% included exceptional gain of ~₹12.5 Cr on sale of plantation land

Corporate Governance

Board of Directors:

  • Mr. Ashutosh Goenka (Chairman & Managing Director)
  • Mr. Shubhang Goenka (Whole-Time Director)
  • Mr. Hemal Kiran Shah (Independent Director)
  • Mr. V. K. Jeyakodi (Independent Director)
  • Mrs. Kalpana Maheshwari (Independent Director)

Key Managerial Personnel:

  • Mr. T Parthasarthi (Chief Financial Officer)
  • Ms. Kanchan Rathi (Company Secretary & Compliance Officer)

CSR and Sustainability Initiatives

  • 248 KW rooftop solar plant meeting 50% of energy requirements
  • Effluent treatment plants for water recycling
  • Sustainable sourcing from BCI-certified farms
  • Production of over 3,10,000 organic cotton garments annually
  • Allocation of 2% of annual revenues toward educational activities in Rajasthan

#Tags: #MeenakshiIndia #Q2Results #EBITDA Recovery #ApparelExports #CapacityExpansion #Reg30 #SEBIDisclosure #FinancialUpdate #Neutral