Summary
Page Industries Limited - Q3 FY26 Earnings Call Summary Thursday, February 05, 2026
Event Participants
Executives 3 Deepanjan Bandyopadhyay (CFO), Karthik Yathindra (CEO), V.S. Ganesh (Managing Director)
Analysts 8 Anuj Sehgal, Ashish Kanoda, Avi Mehta, Devanshu Bansal, Gaurav Jogani, Nihal Jam, Rahul Agarwal, Sheela Rathi
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Revenue | ₹1,386.8 crores | +5.6% YoY; Growth driven by realization gains and product mix despite selective consumer demand. |
| Sales Volume | 58.6 million pieces | +1.4% YoY; Reflects modest recovery from Q2 disruptions; volume growth remains slower than value. |
| EBITDA | ₹318.1 crores | +5.2% YoY; Growth supported by stable input costs and tight control over operating expenses. |
| EBITDA Margin | 22.9% | -10 bps YoY; Sustained high margins due to productivity initiatives and strategic sourcing. |
| Profit Before Tax (Pre-Exceptional) | ₹291.3 crores | +5.9% YoY; Strong operational performance before one-time legislative impacts. |
| Profit After Tax (PAT) | ₹189.5 crores | -7.4% YoY; Decline due to ₹35 crore one-time provision for new direct labor codes. |
| Average Selling Price (ASP) | ~₹236.6 | +4% YoY; Increase driven by premium product mix (Bonded/Winter collections) and shift to higher-realization channels. |
| Inventory Days | 67 days | +3 days from start of FY; Minor increase attributed to seasonality and new product launches. |
| Net Working Capital | 52 days | -2 days from start of FY; Improved efficiency in working capital management. |
Geographic & Segment Commentary
- Men’s Innerwear: This remains the largest segment but faces the toughest conditions currently. Performance in entry-level products is slower than mid-premium and premium segments as value-seeking consumers remain cautious.
- Women’s Innerwear & Athleisure: These segments outperformed the company average in both volume and value growth. The new “Bonded Collection” and winter wear (hoodies/jackets) contributed significantly to ASP gains this quarter.
- International (GCC): Management secured licenses for Saudi Arabia, Kuwait, and Bahrain. This expansion beyond UAE, Oman, and Qatar is viewed as a major inorganic growth lever for upcoming quarters.
Company-Specific & Strategic Commentary
- Distribution Expansion: Reached 1,13,600 MBOs, 1,556 EBOs, and 1,778 LFS. EBOs and e-commerce are outperforming General Trade (MBOs), which faces stress from shifting consumer habits and retailer stock corrections.
- Productivity & Automation: Headcount was reduced by ~2,500-3,000 through a recruitment freeze and lean initiatives. Value stream mapping and backend automation are delivering more output with fewer personnel (MD, V.S. Ganesh).
- JKY Groove: The premium athleisure collection expanded to 150 EBOs; plans are in place to reach 500 EBOs by April 2026 (Summer 2026 version). Selective expansion into metro General Trade stores is also underway.
- Manufacturing Mix: In-house manufacturing stood at 64% vs 70% last quarter. The intentional shift to 36% outsourcing provided cost benefits and flexibility across product categories (CFO, Deepanjan Bandyopadhyay).
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Revenue Target | ₹8,000 crores by FY29 | Trajectory to be driven by GCC expansion, new product spaces, and quick-commerce growth. |
| EBITDA Margin | 19% - 21% (Long-term) | Current 22.9% is considered elevated; management intends to reinvest gains into brand building and marketing. |
| Growth Rate | Double-digit (Aspiration) | Management is targeting double-digit volume growth through new summer launches and aggressive BTL marketing starting Q4 FY26. |
Risks & Constraints
| Risk | Context |
|---|---|
| Consumer Sentiment | Recovery has been gradual and selective; entry-level/mass-market volumes remain soft compared to premium categories. |
| Input Cost Volatility | Potential spikes in cotton and textile costs due to global export dynamics may necessitate price hikes (not yet implemented). |
| Channel Disruption | Rapid shift from offline (MBO) to online/organized retail is creating pressure on traditional hosiery store throughput. |
Q&A Highlights
Channel Mix & Realization
- Question: What drove the 4% ASP increase despite no price hikes? (Nihal Jam)
- Answer: Primarily a shift in channel mix (realizing MRP via D2C/E-commerce) and product mix (higher contribution from premium Bonded and Winter collections) (Deepanjan Bandyopadhyay/Karthik Yathindra).
Market Share & Competition
- Question: Have we lost market share given competitors reported double-digit growth? (Gaurav Jogani)
- Answer: There is no syndicated data, but physical evidence and shelf share suggest no erosion. Gains are visible in e-commerce and Large Format Stores (Karthik Yathindra).
Labor Code Impact
- Question: Why did PAT decline by 7.4%? (Nihal Jam)
- Answer: A one-time provision of ₹350 million was made for gratuity and earned leave following the new labor code notification in November 2025 (Deepanjan Bandyopadhyay).
Growth Levers for General Trade
- Question: How can MBO growth be revived? (Anuj Sehgal)
- Answer: Improving per-store penetration (MBOs carry fewer styles than EBOs) and waiting for neighborhood store consumer sentiment to rebound (Karthik Yathindra).
Key Takeaway
Page Industries reported a resilient Q3 FY26 with 5.6% revenue growth, reaching ₹1,386.8 crores, and maintained strong EBITDA margins at 22.9%. While headline PAT declined by 7.4% due to a ₹35 crore one-time legislative provision for employee benefits, operational performance remained steady. The company is navigating a bifurcated market where premium products like the “Bonded Collection” and “JKY Groove” are driving ASP gains, while entry-level men’s innerwear remains subdued. Strategic focus is shifting toward aggressive productivity via automation—evidenced by a headcount reduction—and international expansion into the broader GCC market (Saudi Arabia, Kuwait). Management maintains a long-term EBITDA margin guidance of 19-21%, choosing to reinvest excess margins into brand building to recapture double-digit volume growth. Looking ahead, the focus remains on the Summer 2026 product refresh and deeper penetration of the MBO network to drive a return to historical growth trajectories.
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