Page Industries shares tumbled 10% on Thursday, hitting ₹32,915 as trading desks dumped the apparel maker following a sluggish second-quarter performance. Operating margins shrank. Volume growth failed to touch internal targets. The steep sell-off erased earlier calendar gains, pushing the stock down 7% year-to-date.
Buyers stepped aside. Revenue during the September quarter climbed 11.5% to ₹1,439.6 crore compared to ₹1,291 crore recorded during the corresponding period last year. Yet the top-line expansion failed to flow into bottom-line strength. Net profit crawled up just 3.8% to ₹202.5 crore against ₹195 crore a year earlier, burdened by stubborn raw material expenses that crimped operating leverage.
Earnings before interest, tax, depreciation, and amortisation (EBITDA) rose 7.4% to ₹300.2 crore from ₹279.6 crore. But profitability took an immediate hit. EBITDA margin narrowed 80 basis points to 20.8% against 21.6% in the year-ago quarter, underscoring persistent cost friction.
Sales volume told a similar story of moderation. Page Industries dispatched 59.7 million pieces during the quarter, reflecting a 5.5% volume uptick year-on-year. For the first half of the financial year, volumes grew 5.6%. That pace falls well short of executive targets set in the June quarter, where leadership targeted double-digit volume expansion for the full fiscal year.
| Financial Metric | Q2 Current Year | Q2 Previous Year | YoY Change (%) |
|---|---|---|---|
| Revenue | ₹1,439.6 crore | ₹1,291.0 crore | +11.5% |
| EBITDA | ₹300.2 crore | ₹279.6 crore | +7.4% |
| EBITDA Margin | 20.8% | 21.6% | -80 bps |
| Net Profit | ₹202.5 crore | ₹195.0 crore | +3.8% |
| Sales Volume | 59.7M pieces | 56.6M pieces | +5.5% |
Beyond operating numbers, regulatory disclosures tucked inside the financial notes sparked immediate scrutiny across institutional desks.
According to the regulatory filing, Page Industries engaged in retail trading of imported Jockey and Speedo merchandise via e-commerce portals without operating dedicated brick-and-mortar storefronts. The arrangement breached multi-brand retail norms framed under the Foreign Exchange Management Rules, 2019, enacted under the Foreign Exchange Management Act, 1999.
Following internal reviews and external legal counsel, the company submitted a compounding petition to the Reserve Bank of India on May 20, 2026. The banking regulator rejected the filing on October 16, 2026, directing Page Industries to secure post-facto clearance from the Government of India before reapplying.
The Management expects the non-compliance to be compounded by the RBI and the financial impact, if any is not likely to be material. Accordingly, no adjustment has been made to the financial results.
The board approved an interim dividend alongside the quarterly earnings release, seeking to temper negative sentiment as compliance procedures continue.
Market Context: Page Industries carries high single-stock valuation multiples that demand double-digit volume momentum and stable 20%-plus operating margins. Any quarter that combines single-digit volume growth with margin erosion leaves the stock vulnerable to sharp institutional de-rating.
Management pushed back against long-term pessimism, arguing that core retail demand remains intact despite the immediate cost squeeze.
"While raw material costs remained elevated, our profitability has remained within our planned range," said VS Ganesh, Managing Director of Page Industries. "With positive demand trends, strong brand momentum, an exciting pipeline of new product ranges and ongoing initiatives to improve operational efficiency, we look ahead with confidence."
So the spotlight shifts entirely to festive execution. Management confirmed it expects a healthy demand lift over coming months, leaning on recently expanded factory floor capacity, tightened supply-chain processes, and technology-driven factory floor upgrades to lower production costs. Page Industries must now secure post-facto government approval for its multi-brand e-commerce trading before returning to the RBI compounding desk.