Dollar Industries Ltd

Financial Performance

• Operating income: INR 405 crores in Q1 FY27, up 1.4% YoY.
• Gross profit: INR 151 crores; margin 37.4%, up 192 bps YoY.
• Operating EBITDA: INR 48 crores; margin 11.8% YoY growth 11.4%.
• PAT: INR 26 crores; margin 6.4%; YoY growth 22.1%.
• Diluted EPS: INR 4.59 vs INR 3.76 in Q1 FY26.
• Ad spend 7.7% of revenue; annual cap INR 100 crores; ad spend to moderate.
• Net debt: INR 192 crores; debt/Equity 0.20; debt/EBITDA 1.01.
• Cash conversion cycle: 160 days; improving trajectory expected.
• ROE: 10.8% (annualised); ROCE: 12.9% (annualised).
• Lakshya distributors: 327 across 14 states; Lakshya contributes 31% of Q1 FY27 revenue.
• Brand mix: Dollar Always 44%, Dollar Man 38%; Dollar Woman 8%, Dollar Protect 6%, Force NXT 4%.
• Export: INR 19 crores in 15 countries; value growth 16.2%; volume growth 15.5%; export share 4.9%.
• G.O.A.T alliance: revenue INR 16.44 crores; PAT INR 2.27 crores; PAT margin 13.8%.

Segment and Channel Trends

• Quick commerce revenue share 5% in Q1 FY27 (3.1% in Q1 FY26); strong growth trajectory.
• Dollar Protect contributed 5.6% of total revenue; 49% value growth, 68% volume growth.
• Southern region: 22.9% value growth; 7.3% volume growth; region share 8.9%.
• Export growth: 19 crores; 16.2% value growth; 15.5% volume growth; 4.9% share.

Balance Sheet and Cash Flow

• Net debt reduced to INR 192 crores as on 30-Jun-2026 from INR 277 crores Mar-26.
• Net debt/Equity 0.20; Net debt/EBITDA 1.01; ROE 10.8%; ROCE 12.9%.
• Cash conversion cycle 160 days; no major capex commitments in near term.
• Positive operating cash flow: approximately INR 96 crores in the quarter.
• Debt repayment in quarter: INR 86 crores; target zero net debt by FY28; working-capital heavy debt.

Lakshya program and Capex

• Phase-2 Lakshya commenced; focusing on active retailers in stronghold states.
• As of Jun-2026: 327 Lakshya distributors across 14 states; 80,000 active retailers; 173,561 enrolled to date.
• Phase-2 aims to activate more retailers; no new states added this fiscal; focus on existing enrolled states.
• Lakshya contribution: around 31% of quarterly revenue; enrolled distributors ~20-22% across network.

Guidance and Outlook

• Revenue growth target for FY27: 11% to 13%.
• EBITDA margin target for FY27: 11.5% to 12.5%.

Q&A Highlights

• Pricing: 4%-5% price hikes taken to date; no further hikes expected in near term; market stabilising.
• Volume: near-term volume growth targeted to help achieve 11-12% annual revenue growth; some quarter volatility possible.
• Force NXT: 7% volume growth in Q1; ASP ~INR 220; 2-3 year growth 20%-25% YoY; innerwear addition boosts volume.
• Lakshya operating metrics: Lakshya areas show higher past growth; receivables improvement and better debtor days aimed.
• Debt trajectory: INR 86 crores repaid in current quarter; aim to reach zero net debt by FY28; ~90% of debt is working capital.
• G.O.A.T: 16.44 crores revenue; PAT 2.27 crores; ~13.8% PAT margin; growth trajectory maintained.

Filing status

• Audio recording of the earnings call for quarter ended 30 June 2026 is on the company website.
• Regulatory reference: Regulation 30(6) and 46(2) of SEBI LODR.

Business Overview

• Leading Indian branded innerwear and outerwear manufacturer.
• Core segments: Dollar Man, Dollar Woman, Dollar Protect, and Dollar Always.
• Operations span Kolkata, Ludhiana, Delhi, Tirupur.
• Phase Lakshya underway to modernize the distribution model.
• JV with GOAT Brands Lab for Pepe Jeans Inner fashion; 51-49.
• Export exposure across 15 countries; exports growth positive.

Key Operational Highlights

• Q1 FY27 revenue ₹4,048 Mn; YoY +1.4%.
• Gross profit ₹1,512 Mn; margin 37.4%.
• Operating EBITDA ₹478 Mn; margin 11.8%.
• PAT ₹260 Mn; margin 6.4%.
• Dollar Protect revenue 5.6% of total; value +49%; volume +68%.
• Southern region revenue up 22.9% YoY; share up to 8.9%.
• Quick commerce channel revenue 5.0% of revenue.
• Export revenue ₹191 Mn; value +16.2%; volume +15.5%.
• Phase 2 Lakshya: retailer enrollment and ARS/DMS rollout.
• Scheme of Arrangement approved by BSE/NSE; court meeting per NCLT Kolkata.

Financial Performance

• QoQ: revenue down 34.9%; EBITDA down 17.2%; PAT down 20.1%.
• Net worth ₹9,810 Mn; net debt ₹1,923 Mn.
• Short-term borrowings ₹1,598 Mn; long-term ₹328 Mn.
• Exports across 15 countries; free float 27.43%; market cap ₹1,518 Cr.

Capital Structure & Liquidity

• Merger of promoter group companies approved; consolidation into Dollar Industries.
• Liquidity improving via reduced short-term borrowings to ₹1,598 Mn.
• JV with GOAT for Pepe Jeans; D2C expansion underway.

Strategic Priorities & Outlook

• Medium-term: metamorphose into premium and super-premium brand.
• Long-term: become complete brand and distribution company across fashion wear.
• Growth drivers: Lakshya, brand overhaul, digitization, e-commerce expansion.
• D2C growth via Pepe Jeans JV and GOAT alliance.
• Diversifying with Dollar Protect rainwear and Dollar Woman lingerie.
• ERP SAP Hana S/4 implemented; ARS and DMS deployed.

Governance & Leadership

• Audit Committee: 75% independent directors; Nomination & Remuneration committee all independent.
• Three women independent directors on the board.
• Promoter group merger approved by regulators and shareholders.

Risks & Mitigation

• Seasonality evident in Q1; Lakshya aims to stabilize quarterly revenue.

Financial results approved

• Unaudited standalone and Consolidated results for quarter ended 30 June 2026 approved; Limited Review Reports enclosed.

Notes on results and scope

• Results prepared under Ind AS 34; reviewed by statutory auditors; not audited.
• Single primary segment: Garment & Hosiery; no separate segment disclosures.
• Consolidated results include subsidiary Dollar Garments Private Limited and joint venture Pepe Jeans Innerfashion Private Limited.

Financial highlights

• Total Income for Q1 FY27: ₹40,566 Lakh, up 1.5% YoY.
• Operating Income: ₹40,481 Lakh; YoY up 1.4%.
• Gross Profit: ₹15,124 Lakh; margin 37.4%.
• Operating EBITDA: ₹4,777 Lakh; margin 11.8%.
• PAT: ₹2,602 Lakh; margin 6.4%.
• Diluted EPS: ₹4.59.

Segment and regional performance

• Dollar Protect segment: value growth 49%; volume growth 68%.
• Southern region: value growth 22.9%; volume 7.3% YoY; share 8.9%.
• Quick commerce channel: value +59.4%, volume +15.1%; revenue share 5.0%.
• Exports: value +16.2%; volume +15.5%; share 4.9%.

Strategic initiatives and approvals

• Phase 2 of Project Lakshya commenced; retailer mapping underway.
• Initial focus on stronghold states; evaluating opportunities in new markets.
• Scheme of Arrangement approved by BSE and NSE; shareholders approved at court meeting.

Outlook and governance

• Management expects ongoing initiatives to sustain growth across core markets and newer channels.
• Exports and Lakshya program to support growth in coming quarters.

Financial highlights

• Board approved unaudited standalone and consolidated results for quarter ended 30 Jun 2026.
• Standalone revenue from operations: 3890717 Lakhs.
• Standalone total income: 3899570 Lakhs; expenses: 3571083 Lakhs.
• Standalone PBT: 328487 Lakhs; PAT: 244595 Lakhs.
• Standalone EPS: 3.59.
• Consolidated revenue from operations: 40480.78 Lakhs.
• Consolidated total income: 62276.05 Lakhs; expenses: 37189.82 Lakhs.
• Consolidated PBT: 3486.87 Lakhs; PAT: 2625.08 Lakhs.
• Consolidated EPS: 3.59.
• Subsidiary: Dollar Garments Private Limited; Joint venture: Pepe Jeans Innerfashion Private Limited.
• Limited review conducted; conclusions not qualified; Ind AS 34 applied.
• Single primary business segment: Garment & Hosiery; no separate segment disclosures.
• Composite Scheme of Arrangement approved 26 Sep 2025; NCLT Kolkata approval pending; first hearing 5 May 2026.
• Annexure A accompanies the results.

Corporate actions & approvals

• Composite Scheme approved 26 Sep 2025; related-party transactions to be pruned.
• NCLT Kolkata approval pending; first hearing on 5 May 2026.