Page Industries shares crash over 13% after Q2 results, FEMA non-compliance disclosure
Page Industries shares fell sharply on Thursday after the company disclosed FEMA non-compliance involving online sales of imported Jockey and Speedo products. The stock's decline came despite an 11.5% rise in Q2 FY27 revenue and a 4% increase in p...
By Kumar Gaurav, ETMarkets.com |
Agencies
Shares of Page Industries came under heavy selling pressure on Thursday, falling over 13% after the company announced its financial results for the September quarter of FY27 (Q2 FY27). The stock declined as much as 13.18% to hit an intra-day low of Rs 31,750 apiece on the NSE. The stock settled 12.91% lower at Rs 31,850.
The sharp decline came after the company disclosed that the online sale of imported Jockey and Speedo products without physical stores was not in compliance with FEMA retail trading rules. The Reserve Bank of India (RBI) has asked the company to obtain post-facto government approval before reapplying for compounding. The management expects no material financial impact from the matter.
Page Industries Q2 results
The company also releasesd its Q2 earnings on Thursday.
During Q2 FY27, Page Industries reported a 4% year-on-year (YoY) increase in profit after tax (PAT) to Rs 202.5 crore, compared with Rs 194.8 crore in the corresponding quarter of the previous financial year.
Revenue from operations rose 11.5% YoY to Rs 1,439.6 crore in the September quarter, against Rs 1,290.9 crore reported in Q2 FY26.
Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 7.4% YoY to Rs 300.1 crore from Rs 279.5 crore in the year-ago period, according to the company's exchange filing.
Page Industries declares dividend
Separately, the company's board of directors, at its meeting held on November 12, 2026, declared the second interim dividend of Rs 150 per equity share for the financial year 2026-27.
The company had earlier fixed November 18, 2026, as the record date for determining shareholders eligible to receive the dividend. The payment will be made on or before December 11, 2026.
Management commentary
Commenting on the results, V.S. Ganesh, Managing Director of Page Industries, said the company delivered double-digit revenue growth of 11.5% in Q2 FY27, supported by healthy volume growth, premiumisation and consumer response to new product launches.
He said raw material costs remained elevated, while profitability continued to remain within the company's planned range.
The management said consumer demand remained upbeat throughout the quarter, carrying forward the momentum from Q1, even as the festive season approaches in Q3. The newly introduced Disney and Marvel collections also received a positive response from consumers.
On the input cost front, the company said cotton prices remained expensive and volatile, while crude oil-linked raw materials continued to be significantly above earlier levels. Page Industries said it absorbed part of the cost inflation through price increases initiated in Q1, while continuing to balance margin protection with value delivery to consumers.
The company's transformation initiatives are also progressing, with the S/4HANA rollout on track for a Q4 go-live. The Distribution Management System is scaling up as planned, while cybersecurity and human resources transformation programmes are also progressing.
Page Industries said its distribution network continues to expand across multi-brand outlets, exclusive brand stores and large-format stores. E-commerce also recorded strong performance across marketplaces and the company's own portal, contributing a growing share of sales.
Recent investments in fulfilment capabilities in West Bengal are expected to further strengthen its direct-to-consumer reach.
Outlook
Looking ahead, Page Industries expects consumer demand to receive a healthy boost as the festive season gets underway.
The company said its established brands, new product launches and expanding retail presence position it to capture the expected demand momentum.
Also read: LIC’s ₹15.5 lakh crore portfolio revealed: Stocks India’s largest domestic investor bought and sold in Q2
Expanded manufacturing capacity, streamlined processes and technology-led productivity improvements are expected to help the company serve demand faster and at lower costs, while maintaining close monitoring of input costs.
The management said it remains confident in underlying demand trends, brand strength and its ability to execute its business plans with discipline.
Disclosure: This article has been written by Kumar Gaurav, who is not a Sebi-registered Research Analyst or an Investment Adviser. Gaurav and their ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective Sebi-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here
The sharp decline came after the company disclosed that the online sale of imported Jockey and Speedo products without physical stores was not in compliance with FEMA retail trading rules. The Reserve Bank of India (RBI) has asked the company to obtain post-facto government approval before reapplying for compounding. The management expects no material financial impact from the matter.
Page Industries Q2 results
The company also releasesd its Q2 earnings on Thursday.
During Q2 FY27, Page Industries reported a 4% year-on-year (YoY) increase in profit after tax (PAT) to Rs 202.5 crore, compared with Rs 194.8 crore in the corresponding quarter of the previous financial year.
Revenue from operations rose 11.5% YoY to Rs 1,439.6 crore in the September quarter, against Rs 1,290.9 crore reported in Q2 FY26.
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Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 7.4% YoY to Rs 300.1 crore from Rs 279.5 crore in the year-ago period, according to the company's exchange filing.
Page Industries declares dividend
Separately, the company's board of directors, at its meeting held on November 12, 2026, declared the second interim dividend of Rs 150 per equity share for the financial year 2026-27.
The company had earlier fixed November 18, 2026, as the record date for determining shareholders eligible to receive the dividend. The payment will be made on or before December 11, 2026.
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Management commentary
Commenting on the results, V.S. Ganesh, Managing Director of Page Industries, said the company delivered double-digit revenue growth of 11.5% in Q2 FY27, supported by healthy volume growth, premiumisation and consumer response to new product launches.
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He said raw material costs remained elevated, while profitability continued to remain within the company's planned range.
The management said consumer demand remained upbeat throughout the quarter, carrying forward the momentum from Q1, even as the festive season approaches in Q3. The newly introduced Disney and Marvel collections also received a positive response from consumers.
On the input cost front, the company said cotton prices remained expensive and volatile, while crude oil-linked raw materials continued to be significantly above earlier levels. Page Industries said it absorbed part of the cost inflation through price increases initiated in Q1, while continuing to balance margin protection with value delivery to consumers.
The company's transformation initiatives are also progressing, with the S/4HANA rollout on track for a Q4 go-live. The Distribution Management System is scaling up as planned, while cybersecurity and human resources transformation programmes are also progressing.
Page Industries said its distribution network continues to expand across multi-brand outlets, exclusive brand stores and large-format stores. E-commerce also recorded strong performance across marketplaces and the company's own portal, contributing a growing share of sales.
Recent investments in fulfilment capabilities in West Bengal are expected to further strengthen its direct-to-consumer reach.
Outlook
Looking ahead, Page Industries expects consumer demand to receive a healthy boost as the festive season gets underway.
The company said its established brands, new product launches and expanding retail presence position it to capture the expected demand momentum.
Also read: LIC’s ₹15.5 lakh crore portfolio revealed: Stocks India’s largest domestic investor bought and sold in Q2
Expanded manufacturing capacity, streamlined processes and technology-led productivity improvements are expected to help the company serve demand faster and at lower costs, while maintaining close monitoring of input costs.
The management said it remains confident in underlying demand trends, brand strength and its ability to execute its business plans with discipline.
Disclosure: This article has been written by Kumar Gaurav, who is not a Sebi-registered Research Analyst or an Investment Adviser. Gaurav and their ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective Sebi-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here
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