Markets India
Page Industries shares fell 13% to ₹31,850 on Thursday as higher raw material costs limited profit growth in Q2 FY27. Revenue rose 11.5% YoY despite margin pressures.
The stock's sharp decline followed a report showing Page Industries' profits after tax (PAT) grew just 4% year-on-year to ₹202.5 crore, outpaced by an 11.5% surge in raw material expenses. Total costs rose 13% to ₹1,131 crore, with input prices climbing 11.5%, squeezing margins despite a 5.5% sales volume increase to 59.7 million units.
The company's EBITDA margin remained at 20.8%, but the reliance on festive demand for recovery highlights its seasonal business model risks. Management emphasized new product launches and operational efficiency as key growth levers, though analysts caution about market share erosion if consumer adoption falls short.
Page Industries' H1 FY27 revenue grew 9.7% to ₹2,860 crore with a sales volume increase of 5.6%, but PAT stayed flat at ₹395.4 crore due to persistent cost pressures.
The company will pay its second interim dividend of ₹150 per share by December 11, following the November 18 record date. Page Industries plans to monitor raw material prices and expand manufacturing capacity.
Page's recovery hinges on festive demand and new product success amid rising costs, with operational efficiency as a critical growth lever.
Topics: Stock Market India, Raw Material Costs Impact, Apparel Industry Trends, Corporate Profitability Analysis, Operational Efficiency Strategies
#PageIndustries #RawMaterialCosts #Q2FY27Results #ApparelSector #OperationalEfficiency
Source: LiveMint
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