Brokerages, however, continue to expect volume growth to recover in the coming months.
Page Industries reported a 4% year-on-year decline in net profit to ₹193 crore from ₹201 crore, while revenue increased 7.9% to ₹1,420.4 crore from ₹1,316.6 crore.
Earnings before interest, tax, depreciation, and amortisation (EBITDA) declined 2% (YoY) to ₹289 crore, compared with ₹295 crore a year earlier, while EBITDA margin contracted to 20.3% from 22.4%.
Revenue growth was supported by a 5.7% increase in volumes, although the quarter was impacted by higher cotton and synthetic input costs. The company implemented an average 2% price increase in May to partially offset raw material inflation.
Growth remained broad-based, with exclusive brand outlets (EBOs) and e-commerce emerging as the fastest-growing channels. The company had 1,604 exclusive brand stores and 1,15,208 retail points at the end of Q1.
Newer Jockey product launches are also gaining traction, with the company planning further launches through FY27. The Odisha and KR Pet manufacturing facilities are currently being ramped up.
How brokerages reacted to Page Ind Q1
Brokerage firm HSBC has retained its ‘Buy’ rating on Page Industries with a price target of ₹47,560.
HSBC described Q1 as a weak quarter, with revenue missing estimates by around 6%, despite 8% (YoY) growth. According to the brokerage, the company attributed the shortfall to certain one-off factors.
HSBC said management remains confident of recovering the lost sales and delivering double-digit volume growth during FY27. The brokerage has marginally lowered its revenue estimates and cut its EPS estimates by 1-3%.
Citi has also retained its ‘Buy’ rating on Page Industries, with a price target of ₹46,500. The brokerage said revenue growth of around 8% missed its estimates, primarily due to temporary disruptions related to logistics and manpower.
However, management reiterated that underlying demand remains strong, as reflected in secondary and tertiary sales. It also maintained its expectation of double-digit volume growth in FY27, despite Q1 volume growth of just 4.7%.
The company continues to guide for 19-21% margins for FY27, with current raw material prices and the price hikes already implemented providing some support.
Citi said the weak Q1 performance, following 10.8% volume growth in Q4, could weigh on the stock in the near term. However, it sees volume growth accelerate to around 10-12% in Q2, a key trigger for a potential re-rating.
FY27 outlook
For FY27, Page Industries continues to target double-digit volume growth, while maintaining its margin guidance at 19-21%.
The key debate for investors now is whether the expected volume recovery can offset input cost pressures and support margin durability through the year.
Page Industries shares ended 4.66% lower at ₹36,510 on Thursday. The stock has declined around 10% over the past month.
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