This article first appeared on GuruFocus .
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Quarterly Revenue:INR 313.5 crores, down 0.9% year-on-year.
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9-Month Revenue:INR 817.6 crores, compared to INR 823.8 crores year-on-year.
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Quarterly EBITDA:INR 25.7 crores, down 32% year-on-year.
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Quarterly EBITDA Margin:8.2%, down by 380 basis points year-on-year.
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Quarterly Net Profit:INR 16.2 crores, down 32% year-on-year.
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Quarterly Net Profit Margin:5.2%, down by 230 basis points year-on-year.
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9-Month EBITDA:INR 60.3 crores, down 29% year-on-year.
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9-Month EBITDA Margin:7.4%, down by 299 basis points.
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9-Month Net Profit:INR 36.2 crores, down 31% year-on-year.
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Export Growth:28% year-on-year, contributing 4% to revenues.
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Modern Trade Contribution:6% of revenues during the 9 months.
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Operating Cash Flow:INR 49 crores during the 9 months.
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Cash Surplus:INR 41 crores as of December 31, 2025.
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Release Date: February 13, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Rupa & Co Ltd ( BOM:533552 ) reported a 28% year-on-year growth in exports, contributing 4% to total revenues.
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The company generated operating cash flow of INR 49 crores during the 9 months, reflecting strong liquidity management.
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Modern trade, including e-commerce, contributed 6% of revenues during the 9 months, indicating growth in new sales channels.
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The company is focusing on expanding its product portfolio with new ranges like leisure and activewear, and women's wear.
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Rupa & Co Ltd ( BOM:533552 ) is maintaining disciplined working capital management with a cash surplus of INR 41 crores as of December 31, 2025.
Negative Points
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Revenue for the quarter was marginally down by 0.9% year-on-year, indicating a challenging market environment.
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The EBITDA margin for the quarter decreased by 380 basis points year-on-year, reflecting pricing pressures.
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Net profit for the period fell to INR 16.2 crores from INR 23.8 crores in the previous year, a decline of 32%.
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The company is facing intense price competition, leading to aggressive pricing strategies that have impacted margins.
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Working capital days for the 9 months stood at 230 days, indicating potential inefficiencies in inventory management.
Q & A Highlights
Q: The industry is facing continuous pricing wars, squeezing margins post-COVID. When do you expect stabilization? A: In the short term, stabilization is not expected. However, once export demand picks up and yarn prices stabilize, the trend might change, which could take a few more quarters. - Vikash Agarwal, Whole-time Director
Q: Why are we seeing a sharp decline in margins? A: The decline in margins is due to intense price competition in the market. Our aggressive pricing strategies have impacted realizations, resulting in lower growth and operating margins. - Sumit Khowala, Chief Financial Officer
Q: What are your CapEx plans and marketing expenditures for FY26? A: There are no major CapEx plans, with routine expenses of INR 12-15 crores. The yearly budget for advertisements is around 6% to 7%. - Sumit Khowala, Chief Financial Officer
Q: What is your working capital in terms of days for 9 months FY26? A: The working capital days for the 9 months is around 230 days. - Sumit Khowala, Chief Financial Officer
Q: What is leading to the pricing pressure, and what are the trade discounts offered for FY26? A: Pricing pressure is due to aggressive schemes for dealers to remain competitive. The total discounts or schemes offered are around 12%. - Sumit Khowala, Chief Financial Officer
Q: How are the economy and premium segments performing compared to mid-premium products? A: The economic segment underperformed compared to mid-premium and premium segments this quarter. However, we expect growth from the economic segment going forward. - Sumit Khowala, Chief Financial Officer
Q: How are you managing channel inventory given flat revenue and pressure on realization? A: The discounts are structural, not for inventory clearance. We are managing the channel and current inventory levels effectively. - Sumit Khowala, Chief Financial Officer
Q: What is the anticipated time frame for price normalization? A: Price normalization is expected in the next two to three quarters. - Vikash Agarwal, Whole-time Director
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
