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Page Industries shares plunge 13% as higher RM costs hit Q2 profitability; can festive demand drive a recovery?

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In short

Page Industries experienced margin compression in the second quarter of FY27 as total expenses escalated to ₹1,131 crore due to elevated raw material costs. Although sales volumes expanded by 5.5% to yield ₹1,439.6 crore in revenue, net profit rose by just 4% during the period. The company is banking on strong festive season demand, new product launches, and operational efficiency measures to offset ongoing cost headwinds.

Key points

  • Profit after tax growth was restricted to 4% as raw material costs advanced by 11.5%.: Profit after tax growth was restricted to 4% as raw material costs advanced by 11.5%.
  • First-half profit after tax remained broadly flat at ₹395.4 crore despite revenue touchin…: First-half profit after tax remained broadly flat at ₹395.4 crore despite revenue touching ₹2,860.1 crore.
  • Management expects festive consumer demand and retail expansion to aid business recovery…: Management expects festive consumer demand and retail expansion to aid business recovery while monitoring input prices.

Sources checked by our analysis pipeline: 1

Shares of Page Industries, the licensee for Jockey and Speedo in India, plunged 13% in Thursday's trade, 12 November, falling to the lowest level since April at ₹31,850 as investors were disappointed with the company's performance in the second quarter, weighed down by higher input costs.

The company reported an 11.5% year-on-year (YoY) increase in revenue to ₹1,439.6 crore in Q2 FY27, compared with the corresponding period last year, driven by a 5.5% rise in sales volume to 59.7 million pieces.

However, profitability growth remained relatively modest amid elevated raw material costs. EBITDA increased 7.4% YoY to ₹300.1 crore, with an EBITDA margin of 20.8%, while profit after tax (PAT) rose 4% to ₹202.5 crore, translating into a net profit margin of 14.1%.

The company's total expenses rose nearly 13% to ₹1131 crore, dragged by an 11.5% rise in raw material costs. For the first half of FY27, the company reported a 9.7% YoY increase in revenue to ₹2,860.1 crore, while sales volume grew 5.6% to 121.7 million pieces.

EBITDA rose 2.6% to ₹589.1 crore, with a margin of 20.6%.…

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