Financial Performance Highlights

Q4 FY26 Results (Standalone and Consolidated)

  • Revenue from Operations: ₹441.5 crores (vs. ₹415.5 crores in Q4 FY25), growth of 6.3% YoY
  • EBITDA: ₹55 crores (vs. ₹45.9 crores in Q4 FY25), growth of 19.8% YoY
  • EBITDA Margin: 12.5% (improved by 150 basis points YoY)
  • Net Profit After Tax (PAT): ₹36.1 crores (vs. ₹30.6 crores in Q4 FY25), growth of 18.1% YoY
  • PAT Margin: 8.2% (improved by 80 basis points YoY)
  • Volume Growth: 9% YoY during the quarter

Full Year FY26 Results

  • Revenue from Operations: ₹1,259.1 crores (vs. ₹1,239 crores in FY25), growth of 1.6% YoY
  • EBITDA: ₹115.3 crores (vs. ₹130.4 crores in FY25), de-growth of 11.6% YoY
  • EBITDA Margin: 9.2% (vs. 10.5% in FY25)
  • Net Profit After Tax (PAT): ₹72.5 crores (vs. ₹83.3 crores in FY25), de-growth of 12.9% YoY
  • PAT Margin: 5.8% (vs. 6.7% in FY25)

Operational and Strategic Updates

Business Performance Drivers

  • Strong volume growth of 9% in Q4 FY26 reflecting improved market traction and consumer demand
  • Athleisure segment witnessed encouraging momentum with 20% volume growth and 25% value growth in Q4 FY26
  • Exports contributed 3% to overall revenues during FY26
  • Modern trade including e-commerce contributed 5% to revenues during FY26

Sales and Distribution

  • Continued strengthening of sales and distribution network with focused investment in Phase 3
  • Emphasis on improving secondary channel sales by increasing product movement from distributors to retailers
  • Maintaining optimum inventory levels across channels for better stock availability
  • New appointments include: All India Sales Head, Strategy Head, EBO Head, E-commerce Head, and four Zonal Heads

Balance Sheet and Cash Position

  • Cash Surplus: ₹33 crores as of March 31, 2026
  • Operating Cash Flow: ₹45 crores for FY26
  • Company maintains net cash surplus position with robust liquidity profile
  • Short-term debt utilized for arbitrage opportunities (investing in fixed deposits at higher rates than borrowing costs)

Capital Allocation and Returns

Dividend

  • Board has proposed (subject to shareholders' approval) a dividend of ₹3 per equity share for FY26

Capital Expenditure

  • FY27 Capex Plan: ₹60 crores over two years for developing manufacturing cum warehousing facilities
  • Location: West Bengal Hosiery Park, Kolkata
  • Purpose: Strengthening in-house capacity

Forward Guidance

FY27 Outlook

  • Revenue Growth Guidance: 10% to 12% projected for FY27
  • Volume Growth Component: Approximately 4-5% of the expected growth
  • EBITDA Margin Guidance: 9% to 10% range
  • Advertisement Expense Guidance: 6% to 7% of revenue (vs. 4% in Q4 FY26)

Pricing Strategy

  • Implemented price hike of 4-5% in April 2026
  • Potential additional price hike of 2-3% in June/July 2026, depending on market conditions
  • Current trade discount intensity maintained at around 12%

Risk Factors and Market Challenges

Competitive Environment

  • Industry facing intense price competition across key categories
  • Market described as "buyer's market" requiring dynamic discounting in line with market behavior

Geopolitical Impact

  • No direct business impact from U.S.-Iran war or Middle East disruptions
  • Indirect challenges include:
  • Increase in crude oil prices affecting raw material costs
  • Global disruption in shipping routes leading to higher logistics and freight costs
  • Foreign exchange volatility

Raw Material Environment

  • Dependency on cotton yarn pricing and availability
  • Market dynamics affecting pricing normalization over next 1-2 quarters

Additional Operational Details

Inventory Composition (as of March 31, 2026)

  • Raw Materials: 13%
  • Finished Goods: 54%
  • Work in Progress: 33%

Advertisement Spend Breakdown (FY26)

  • Total Brand Development Cost: ₹70 crores
  • Outdoor: 50% of total expenditure
  • Digital: 4% of total expenditure
  • Television: 10-12% of total expenditure
  • Print Media: 12% of total expenditure
  • Future Focus: Increasing investment in digital platforms

Management Participants

  • Mr. Vikash Agarwal - Whole-time Director, Rupa & Company Limited
  • Mr. Sumit Khowala - Chief Financial Officer, Rupa & Company Limited
  • Mr. Omkar Bagwe - Moderator, MUFG Intime

Availability

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