Financial Performance Highlights

Q2 FY27 Standalone Results:

  • Total Income: ₹827 crores (compared to ₹719 crores in Q2 FY26, growth of 15.1%)
  • EBITDA: ₹131 crores (compared to ₹121 crores in Q2 FY26)
  • Profit After Tax: ₹75 crores (compared to ₹87 crores in Q2 FY26)
  • Revenue Mix: Fabrics 77%, Garments 16%, Yarn and others 7%

H1 FY27 Standalone Results:

  • Total Income: ₹1,293 crores (compared to ₹1,118 crores in H1 FY26, growth of 15.6%)
  • EBITDA: ₹170 crores
  • Profit After Tax: ₹86 crores

Dividend Declaration

The Board of Directors approved first interim dividend of ₹4 per equity share of ₹2 each for FY27.

Retail Business Update

  • Total store count: 61 stores as of date (38 ZECODE + 23 DEVO)
  • H1 FY27 retail revenue: Approximately ₹65 crores from ZECODE and DEVO combined
  • Expansion target: 70 stores by FY27-end (confidently maintained)
  • Expansion strategy: Funded entirely through internal accruals
  • ZECODE focus: South India cluster (Bangalore, Hyderabad, Chennai)
  • DEVO focus: North India cluster (Delhi, UP, Punjab, Rajasthan)

Capital Structure and Financial Position

  • Debt-equity ratio as of September 30, 2026: 0.58
  • H1 FY27 CAPEX: ₹51 crores spent
  • Full-year CAPEX guidance: ₹100 crores (including ₹46 crores for retail expansion)

Business Guidance and Outlook

  • Revised revenue growth guidance: 14%-15% for FY27 (upward revision)
  • Retail EBITDA impact: Maintained at 150 basis points maximum drop
  • Retail revenue target: Approximately ₹160 crores for FY27
  • Expected boost from festive season in Q3 FY27

Operational Highlights

  • Raw material inflation: Cumulative price hikes of 4%-6% over past 6 months
  • Volume growth in Fabric business: Approximately 2.5%
  • Value growth in Fabric business: Approximately 11%
  • Recovery noted in Tier-2 and Tier-3 markets for traditional fabric business

Preference Share Listing Update

  • Preference shares expected to be listed in approximately 6 months
  • Interest payable yearly from date of allotment
  • Necessary applications with BSE and NSE already made

Management Commentary

The management expressed optimism about the upcoming festive season and noted that the company continues to execute strategic priorities with discipline and agility. The focus remains on product innovation, retail expansion, and brand development while maintaining prudent financial management.

Q&A Session Key Points

  • Raw material inflation identified as primary reason for margin pressure
  • ZECODE larger format stores delivering better outcomes than smaller stores
  • No immediate plans for e-commerce/D2C for retail brands
  • Tier-2 and Tier-3 markets showing recovery in traditional fabric business
  • Company confident in navigating raw material cycles based on historical performance
  • Funding strategy for future retail expansion to be decided annually