Key Financial Performance (Q2 FY27)

  • Revenue from Operations: ₹320.4 crores (flat YoY vs. ₹320.2 crores in Q2 FY26)
  • Gross Margin: 27.6% (improved by 20 bps YoY from 27.4%)
  • EBITDA: ₹26 crores (growth of 15.9% YoY from ₹22.4 crores)
  • EBITDA Margin: 8.1% (improved by 110 bps YoY)
  • PAT: ₹17 crores (growth of 17.4% YoY from ₹14.5 crores)
  • PAT Margin: 5.3% (improved by 80 bps YoY)

Key Financial Performance (H1 FY27)

  • Revenue from Operations: ₹522.8 crores (growth of 3.7% YoY from ₹504.1 crores)
  • Gross Margin: 31.4% (improved by 20 bps YoY from 31.2%)
  • EBITDA: ₹41.7 crores (growth of 20.4% YoY from ₹34.6 crores)
  • EBITDA Margin: 8.0% (improved by 110 bps YoY from 6.9%)
  • PAT: ₹25.3 crores (growth of 25.9% YoY from ₹20.0 crores)
  • PAT Margin: 4.8% (improved by 80 bps YoY from 4.0%)

Operational and Business Highlights

  • Revenue Performance: Flat revenue in competitive market environment
  • Category Performance: Athleisure and Thermal wear categories showed encouraging traction
  • Thermal Wear Growth: Registered over 30% growth in Q2 FY27
  • Distribution Channels: Modern trade contributed 5% to overall business
  • Profitability Drivers: Improvement supported by cost optimization, operational efficiencies, and gross margin expansion
  • Advertisement Spend: Reduced to 4.7% of revenue in Q2 FY27 from 5.1% in Q2 FY26

Capital Structure and Financing

  • Working Capital: Increased by approximately ₹75 crores from March 2026 to September 2026
  • Borrowings: Increased to serve working capital requirements

Capex Plans

  • Total Capex Approved: ₹83 crores
  • West Bengal Hosiery Park: ₹58 crores for development of factory cum warehouse
  • Modern Trade Warehouse: ₹25 crores for construction of warehouse and storage of accessories dedicated for modern trade business
  • Implementation Timeline: 2-2.5 years

Management and Governance

  • Board Appointment: Mr. Sunirmal Talukdar appointed as Independent Director
  • Background: Retired as Group Executive President and CFO at Hindalco Industries
  • Current Directorships: Serves on boards of Aditya Birla Fashion and Retail Limited and Vodafone Idea Limited

Forward-Looking Guidance

  • Revenue Growth Target: Approximately 10% for full year FY27
  • EBITDA Margin Target: Approximately 9% for full year FY27
  • Growth Expectations: Thermal wear expected to perform well throughout the year

Market Context and Challenges

  • Industry Competition: Intense competition in hosiery market with price wars
  • Market Challenges: Scheme discounts and receivable/credit days management are significant challenges
  • Raw Material Prices: High raw material prices affecting industry profitability
  • Industry Performance: Entire hosiery industry facing headwinds, with competitors also reporting challenges

Participant Questions and Management Responses

  • EBITDA Growth Drivers: Improved gross margin (30 bps), advertisement cost savings (40 bps reduction as percentage of revenue), and other expense savings
  • Thermal Wear Performance: 30%+ growth in Q2 with positive outlook
  • Debt Position: Borrowings increased to fund ₹75 crore working capital requirement
  • Second Half Growth: Targeting ~20% growth in H2 FY27 compared to H2 FY26 (₹750 crores base)
  • Competitive Intensity: No improvement from previous quarter, status quo maintained
  • Long-term Margin Outlook: Historical EBITDA margins of 13-14% acknowledged, with current pressures attributed to industry-wide challenges

Conference Details

  • Date: November 03, 2026
  • Host: MUFG Intime (Investor Relations Advisors)
  • Management Participants: Mr. Vikash Agarwal (Whole-Time Director), Mr. Sumit Khowala (CFO)
  • Moderator: Ms. Pradnya Singh (MUFG Intime)