Rupa & Company LimitedUnclassifiedRUPA
Q1 FY27 earnings callRupa & Company Limited
Revenue grew 10% on healthy volume traction, but intense competition delayed price hike realization and high marketing spend temporarily depressed EBITDA margins below guidance.
Numbers
| Metric | This quarter | Change | Five-quarter trend |
|---|---|---|---|
| Revenue | Rs 202.4 crores | 10.1% | |
| EBITDA | Rs 15.7 crores | 29.1% | |
| EBITDA Margin | 7.8% | 120 basis point | |
| Net Profit | Rs 8.3 crores | 50.2% | |
| PAT Margin | 4.1% | 110 basis point | |
| Gross Margin | 37.4% | — |
Financials
| Quarter | Revenue | Net profit (PAT) | Basic EPS |
|---|---|---|---|
| Q3 FY25 | ₹316.44 Cr-0.6% YoY+6.5% QoQ | ₹23.80 Cr+14.5% YoY+29.1% QoQ | ₹2.99+14.6% YoY+28.9% QoQ |
| Q2 FY25 | ₹297.10 Cr-1.6% YoY+41.3% QoQ | ₹18.44 Cr-10.2% YoY+76.3% QoQ | ₹2.32-10.1% YoY+75.8% QoQ |
| Q1 FY25 | ₹210.29 Cr+7.6% YoY-47.5% QoQ | ₹10.46 Cr+147.9% YoY-56.8% QoQ | ₹1.32+149.1% YoY-56.7% QoQ |
| Q4 FY24 | ₹400.48 Cr-1.3% YoY+25.7% QoQ | ₹24.24 Cr+28.3% YoY+16.7% QoQ | ₹3.05+28.7% YoY+16.9% QoQ |
| Q3 FY24 | ₹318.51 Cr+35% YoY+5.4% QoQ | ₹20.78 Cr+276.4% YoY+1.2% QoQ | ₹2.61+278.3% YoY+1.2% QoQ |
TL;DR
- Revenue grew 10.1% YoY to Rs 202.4 crores driven by volume.
- EBITDA grew 29.1% YoY but margin of 7.8% missed the 9-10% guidance due to high advertisement spend.
- Management expects revenue growth of 10-12% and EBITDA margin of 9-10% for the coming quarter.
- A planned price hike was not fully realized due to competitive schemes; a new rate hike is planned for August.
- Net cash surplus stood at Rs 7 crores.
- Exports contributed 4% and modern trade/e-commerce 5% to revenue.
Said on the call
“While competitive intensity remains elevated, we continue to adopt the calibrated pricing approach with the objective of progressively translating the favorable pricing environment into improved utilizations and margins.”
From the Q&A
| Topic | What management said |
|---|---|
| EBITDA Margin Shortfall | Management attributed the miss vs. 9-10% guidance to advertisement & marketing spend of 10.5% of revenue in Q1, which will be rationalized to 6-7% going forward. |
| Price Hike Realization | A 4-5% price hike taken in April was offset by competitive schemes; a new rate is planned for August, with a further 4-5% hike considered depending on competition. |
| Thermal Segment Outlook | Order book is sound and healthy; contribution expected to be better than last year, though actual numbers depend on winter conditions. |
| Marketing Spend Details | The Rs 21 crore brand development spend (10.5% of revenue) comprised 35-40% ATL, the rest BTL, with 10-12% going to brand endorsement fees. |
| Growth Channels | Modern trade/e-commerce contributed 5% of revenue; company targets >20-25% growth in e-commerce and is building infrastructure and teams for LFS and women's segment. |
| Athleisure Performance | Athleisure saw a 5-7% YoY de-growth in Q1 but is expected to show double-digit growth for the full year. |
| Competitive Intensity | High competition from organized players offering extra discounts and schemes to gain market share is pressuring price realization and margins. |
| Return Ratios (ROCE/ROE) | Management acknowledges current ROCE/ROE levels are not desirable but expects improvement from initiatives like shifting to secondary-driven markets and focusing on newer channels. |
Guidance
- Revenue expected to grow by 10% to 12% in the coming quarter.
- EBITDA margin expected to remain in the range of 9% to 10%.
- Advertisement and marketing spend to be rationalized to 6% to 7% of revenue going forward.
- Expect double-digit growth in athleisure for the full year.
- Target more than 20-25% growth in e-commerce.
Source
Summary written from the transcript filed by Rupa & Company Limited for the call held on 11 Aug 2026; published 18 Aug 2026, 21:08 IST.