Apparel manufacturer Page Industries reported muted earnings growth in the first quarter of FY27, misses analysts’ estimates. The company’s volumes momentum remined weak, impacted by logistics and manpower disruptions.
The licensee of Jockey and Speedo in India, reported a 3.5% decline in net profit for the June quarter to Rs 193 crore from Rs 200 crore in the corresponding period last year.
The company’s revenue from operations in Q1FY27 rose 7.8% to Rs 1,420 crore from Rs 1,317 crore, year-on-year (YoY).
At the operating level, EBITDA declined 2.1% to Rs 289 crore from Rs 295 crore, while EBITDA margin contracted to 20.3% from 22.4%, reflecting pressure on profitability despite higher sales.
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However, Page Industries’ management remained optimistic and reiterated double-digit volume growth target for FY27.
The board of directors of Page Industries declared first Interim Dividend for FY27 of Rs 200 per equity share.
Here’s what brokerages have to say on Page Industries Q1 results.
Morgan Stanley
- Maintain ‘Overweight’ rating, with target price of Rs 42,636 per share
- Q1 results were optically soft, but not as bad, and missed estimates.
- Reported performance was affected by logistics and manpower disruptions.
- Impact on delivery of 3 days of billings and ARS led seasonality normalization.
- Management reiterated double-digit volume growth aspiration for FY27.
- Above-average volume growth in the next three quarters as demand remains strong.
- With the positive management commentary, expect some reversal of the recent underperformance.
Macquarie on Page Industries
- Maintain ‘Underperform’ with target price of Rs 32,500 per share.
- Q1 results missed estimates on weaker volume momentum.
- Q1 EBITDA was below as logistical constraints hurt volumes.
- Reiterated double-digit volume growth target for FY27.
- Worry about a repeat of Q1 when such confidence did not flow into performance.
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