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Page Industries is aiming high. Despite achieving 5.6% volume growth in the first half of FY27 (H1FY27), it is targeting double-digit growth for the full year. Page expects sales to accelerate in H2, driven by festive demand and new launches across key categories. The management said its newly launched Disney and Marvel collections have received an encouraging response from consumers. Page manufactures, markets and distributes apparel brands such as Jockey and Speedo.
“Achieving the full-year double-digit volume growth guidance now requires around 14% volume growth in H2FY27, making the recovery fairly demanding,” said Systematix Shares and Stocks (India).
Page’s optimism on volume growth is yet to reflect in its earnings performance. In the June quarter (Q1FY27), Page lost 3-4 billing days due to the implementation of its auto replenishment system, with a corresponding benefit expected in Q2. But that did not play out. While volumes grew in double digits in July and August, September sales were muted. The festive shift to Q3 deferred primary volumes, while product availability challenges in select categories led to lower fulfilment rates.
Page acknowledged supply-side constraints, with order fulfilment declining from its historical 98-99% levels to 96-97% in Q2. This led to an estimated 3-4% loss in primary orders, particularly in men’s innerwear and women’s outerwear. Volumes grew 5.5% in Q2, while revenue rose 11.5% year-on-year, aided by price hikes and premiumization.
Raw material inflation pulled gross margin down 272 basis points (bps) year-on-year to 57.2%. The pressure was partially offset by a 2.5% price hike. Inflationary pressures have persisted, with the benefit of low-cost inventory exhausted in Q1. The management is open to another price increase, but its timing and quantum will depend on balancing margins with consumer affordability.
Ebitda margin declined 80 bps to 20.8% in Q2FY27, but remained within the guided range of 19-21%. That said, Page expects employee costs to increase. Manpower requirements are expected to rise in the second half of FY27 as its Odisha and KR Pet facilities ramp up. This could constrain Ebitda margin expansion unless input costs ease or the company takes further price hikes.
Competition across online and offline channels remained subdued in Q1 and Q2 compared with the past three years, the management said, although it witnessed elevated consumer offers and discounting in October-November. On distribution, Page expects store additions to pick up in H2FY27, targeting 8,000-10,000 additions in FY27.
Page has an extensive distribution network, strong brand value and a healthy balance sheet, but sustained volume growth is key to regaining investors’ confidence. From its 52-week high of ₹43,855, seen in July, the stock is down nearly 28%.
Systematix cautions that volume growth remains a key concern amid the disconnect between revenue growth and underlying volume momentum. In H1FY27, revenue grew 9.7%, while Ebitda grew just 2.6%.
Citing consecutive negative growth surprises, analysts at Emkay Global Financial Services have cut Page’s FY28 and FY29 earnings-per-share estimates by 8-9%. The stock trades at an unattractive FY28 price-to-earnings multiple of 38, according to Bloomberg data.
Harsha Jethmalani is a Deputy Editor at Mint with over a decade of experience covering stock markets and corporate India. As a key member of the Mark to Market team, she specializes in delivering cutting-edge commentary on market trends, the economy, and corporate financial reports.<br><br>Born and raised in Mumbai, Harsha’s entry into business journalism was a serendipitous pivot. Graduating during the 2008–2009 financial crisis, her initial goal of becoming a research analyst at an MNC was rerouted. However, what began as a chance career move quickly became a conscious choice; she discovered that financial journalism is a powerful storytelling tool capable of influencing and empowering the financial decisions of a massive audience.<br><br>Harsha began her career in 2009 at IRIS Business Services (Myiris.com), tracking mutual funds and interviewing fund managers. In 2011, she joined the Network18 Group, writing extensively on equity market trends for Moneycontrol.com and hosting pre- and post-market audio updates. Following a stint covering personal finance at Dalal Times, she joined Mint in 2016 as a Content Producer, steadily rising through the ranks to her current editorial position.<br><br>A defining highlight of her tenure at Mint was her extensive coverage of India's historic Goods and Services Tax (GST) reform. She chronicled the massive indirect tax overhaul from its initial conceptual and execution hurdles to its eventual streamlining. Her impactful reporting earned official recognition when her article exposing a spike in gold smuggling ahead of the GST rollout was formally acknowledged by the Office of the Director General of Audit (Central), Kolkata. Currently, Harsha closely tracks the IT, cement, real estate, and paint sectors. Her sharp news sense and ability to spot emerging trends consistently bring fresh, actionable perspectives to market analysis.<br><br>She holds a postgraduate degree in financial markets from Indira Gandhi National Open University and a Bachelor of Management Studies from Vivekanand Education Society, Chembur, Mumbai.
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