Page Industries shares plunge 13% as higher RM costs hit Q2 profitability; can festive demand drive a recovery?
A Ksheerasagar
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%. However, profit after tax remained broadly flat at ₹395.4 crore, compared with the corresponding period last year, with a PAT margin of 13.8%.
Commenting on the results, V.S. Ganesh, Managing Director of Page Industries, said the company delivered double-digit revenue growth in Q2 FY27, supported by healthy volume growth, premiumisation and a strong consumer response to new product launches. He acknowledged that raw material costs remained elevated but said profitability had stayed within the company's planned range.
He added that positive demand trends, strong brand momentum, an encouraging pipeline of new product ranges and ongoing operational efficiency initiatives would support the company's growth outlook.
With the festive season getting underway, Page Industries expects a healthy improvement in consumer demand over the coming months. The company believes its established brands, fresh product launches and expanding retail presence will help it capitalise on the anticipated demand recovery.
It also expects expanded manufacturing capacity, streamlined processes and technology-led productivity improvements to help meet demand faster and at lower costs, while continuing to monitor raw material prices.
A Ksheerasagar
Ksheera Sagar has been working as a Market Research Analyst at LiveMint for the past four years, covering stocks, commodities, and broader financial markets. In this role, he closely tracks daily market movements, corporate earnings, sector trends, and macroeconomic developments. <br><br> He has over a decade of experience in the financial services industry and has previously worked with multiple organisations, including global investment bank J.P. Morgan, bringing strong research experience into the newsroom. <br><br> During his career, he has gained extensive exposure to equity research, market analysis, and financial data interpretation, strengthening his expertise across asset classes and market cycles. <br><br> He is known for his data-driven analysis and crisp, listicle-style market stories that break down complex financial developments across key markets for a wide audience. His strong research skills enable him to write detailed and insightful stories on stocks and sectors, focusing on the underlying factors driving market movements. <br><br> His work combines quantitative insights with clear storytelling, presenting financial developments in a clear and structured manner. Moreover, he enjoys writing multibagger and listicle-style copies. Outside of work, Ksheera enjoys playing the piano and exploring new places. He has a keen interest in travel, music, and continuously learning about global markets and economic trends.
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HomeMarketsStock MarketsPage Industries shares plunge 13% as higher RM costs hit Q2 profitability; can festive demand drive a recovery?
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