Rupa & Company Ltd

Financial Performance

• Q1 FY27 revenue: Rs 202.4 crores; up 10.1% YoY from Rs 183.9 crores.
• Gross margin: 37.4% in Q1 FY27 vs 37.7% Q1 FY26.
• EBITDA: Rs 15.7 crores; margin 7.8%; up 29.1% YoY.
• PAT: Rs 8.3 crores; PAT margin 4.1%; up 50.2% YoY.
• Net cash surplus: Rs 7 crores as on June 30, 2026.
• Exports contributed 4% of revenue; modern trade + e-commerce 5%.

Operating Update

• Revenue growth driven by healthy volume momentum; broadening across segments expected.
• Yarn prices rising; favorable pricing environment; calibrated pricing to boost margins.
• Price hike in Q1: 4-5%; August implementation expected; further hikes depend on competition.
• Thermal segment order book sound; winter visibility improves outlook.
• Athleisure performing well; Q4 strong; Q1 soft; full-year double-digit growth anticipated.
• E-commerce growth target: 20-25%; modern trade double-digit expansion.
• Women’s segment Softline: brand revamp and portfolio expansion planned.

Balance Sheet and Cash Flow

• Net cash surplus of Rs 7 crores as on June 30, 2026.
• Liquidity discipline and financial flexibility emphasized.

Projects and Capex

• Brand development spend: Rs 21 crores; ~10.5% of Q1 FY25 top line; 35-40% ATL, rest BTL.
• Endorsement fees included in brand spend; brand ambassadors: Ranveer Singh, Ranbir Kapoor, Wamiqa Gabbi, Yash.
• E-commerce infra investments: warehouse, inventory management, dispatch, IT.
• DMS/ARS rollout: start with select states; one state at a time over 1-2 years.

Guidance and Outlook

• Outlook: revenue to grow 10%-12% in the coming quarter; EBITDA margin 9%-10%.
• Commentary underscores momentum from volume, channels, cost discipline, and pricing improvements.

Q&A Highlights

• Q: EBITDA margin vs guidance; A: Ad spend around 10.5% of revenue; will rationalize to 6-7%.
• Q: Price hike impact; A: August new rate; Q1 4-5% hike; additional 4-5% in August.
• Q: Thermal order book; A: Healthy; winter timing will influence numbers.
• Q: Athleisure progress; A: Q4 strong; Q1 soft; expect double-digit annual growth.
• Q: Women segment strategy; A: Build team; inventory/IT improvements (SAP/AI).
• Q: ARS/DMS rollout; A: Start with few states; one state at a time; 1-2 year horizon.

Meeting Details

• Date: August 11, 2026; time not disclosed.
• Type/Mode: Group earnings conference call; audio recording available.
• Event: Earnings Conference Call; organiser: Rupa & Company Limited.
• Key company participant: Whole-time Director.
• Purpose: Discuss unaudited results for quarter ended June 30, 2026.
• Recording available on company website; transcript to be shared with exchanges and uploaded on website.

Business Overview

• Knitwear and apparel company with multi-brand portfolio across value to premium segments.
• Focus on high-margin innerwear, leisurewear, athleisure, and premium sportswear under multiple brands.
• Expanding Modern Trade, e-commerce, and exports to broaden market reach.
• Integrated in-house manufacturing with 7,00,000 finished goods per day and 9,000+ SKUs.
• Exports and new markets form a key growth pillar; strong domestic base.

Key Operational Highlights

• Q1 FY27 revenue ₹202.4 Cr; YoY growth 10.1%.
• EBITDA ₹15.7 Cr; EBITDA margin 7.8%.
• PAT ₹8.3 Cr; PAT margin 4.1%.
• Exports contributed 4% of revenue; Modern Trade including e‑commerce 5%.
• Net cash surplus ₹7 Cr as of June 2026.
• Volume growth in Q1 FY27 ~10%.
• Working capital: Net Working Capital ₹868 Cr vs ₹854 Cr Mar-26.
• Yarn prices rising; pricing to translate into better realisations.

Growth & Strategy Initiatives

• Focus on high-margin business including premium lines Macroman M-Series and Macrowoman W-Series.
• Expanding modern trade network; current stores >1,500; plan to double Southern India.
• Strengthening e-commerce and D2C: onboarding Myntra, Nykaa, Ajio; global Amazon plan.
• Exports focus: UAE, Saudi Arabia, Kuwait, USA, Nigeria, Indonesia, Singapore.
• Investing in warehousing and tech backbone (WMS, OMS, SAP) for real-time inventory.
• Women’s and Athleisure expansion; health and lifestyle activewear growth.

Financial Performance

• Q1 FY27 revenue ₹202.4 Cr; YoY growth 10.1%.
• Q1 EBITDA ₹15.7 Cr; EBITDA margin 7.8%.
• Q1 PAT ₹8.3 Cr; PAT margin 4.1%.
• FY26 revenue ₹1,259.1 Cr; EBITDA ₹115.3 Cr; PAT ₹72.5 Cr.
• Net cash surplus ₹7 Cr; liquidity disciplined.
• Net Working Capital ₹868 Cr (Jun-26) vs ₹854 Cr (Mar-26).
• Gross margin 37.4%; EBITDA margin 7.8%; PAT margin 4.1% in Q1 FY27.
• Volume growth ~10% in Q1 FY27.

Capital Structure & Liquidity

• Net cash surplus ₹7 Cr; liquidity discipline maintained.
• No debt details disclosed; market cap ₹1,344 Cr; free float 26.7% (₹359 Cr).
• Shares outstanding 79,524,560.

ESG & CSR

• CSR spend ₹1.81 Cr in FY2025-26.
• 480+ water kiosks installed in Kolkata.
• Board comprising 50% independent directors; CSR Committee active.
• Six CSR focus areas highlighted; governance oversight of ESG.

Governance & Leadership

• Ashok Bhandari, Independent Director, passed away on Aug 3, 2026.
• Board has five sub-committees; Audit and Nomination & Remuneration Chairs noted.
• 50% independent directors on board.
• CFO Sumit Khowala; leadership stability.

Risks & Mitigation

• Yarn price rise creates favorable pricing; mitigated by calibrated pricing.
• Elevated competitive intensity; management aims to translate pricing into better realizations.
• Forward-looking statements risk; subject to market and regulatory changes.

Financial results

• Approved unaudited standalone and consolidated results for quarter ended June 30, 2026; Limited Review Reports enclosed.

Appointments and KMP changes

• Rajat Arora appointed Whole-time Company Secretary and Compliance Officer, effective August 26, 2026.
• Sumit Khowala to vacate Compliance Officer role from August 25, 2026; will remain CFO.

Materiality disclosures & authority

• Revised KMPs authorized to determine materiality; effective August 26, 2026.
• Disclosures to be made by KMP: Kunj Bihari Agarwal, Ramesh Agarwal, Mukesh Agarwal, Vikash Agarwal.
• CFO Sumit Khowala and CS Rajat Arora authorized to make disclosures, jointly with others.

Divestment of Oban Fashions

• Board approved divestment of Oban Fashions Private Limited to promoter group Sobhasaria Land Promoters LLP.
• Transfer of 9.91 million equity shares and 4.95 million CCPS; price fixed by Registered Valuer.
• Oban Fashions to cease as subsidiary on completion.
• Completion date on or before September 30, 2026.
• Consideration Rs 4,45,800; Buyer: Sobhasaria Land Promoters LLP.
• Sale to be at arm's length; not a related-party transaction.

Regulatory & audit matters

• Independent auditor reviews obtained for standalone and consolidated results; no material misstatement.
• Standalone impairment of Rs 144.14 lakhs recognised as exceptional item related to Oban Fashions.
• Interim results of three Indian subsidiaries and one overseas subsidiary not reviewed; not material to Group.

Dematerialisation/rematerialisation status

• No dematerialisation requests were confirmed in the reporting period.

Clarification on increased scrip volume

• Reiterates adherence to Regulation 30 LODR and disclosure to exchanges; no pending price-sensitive information.