Page Industries Ltd has been struggling with muted growth and is striving hard for a rebound. Its thrust on operational efficiencies, calibrated distribution expansion and new product launches is yet to reignite the dwindling confidence of investors.
Shares of Page Industries, which manufactures, markets, and distributes brands such as Jockey and Speedo, hit a new 52-week low of ₹38,160 last week. It has declined 18% in 2025 so far.
Volume growth was expected to improve from the September quarter (Q2FY26) onwards with trade inventory levels normalising. But that didn’t play out, given the persistent dull demand and stiff competition.
Volume grew a mere 2.5% year-on-year and realisation was up 1%; consequently, revenue growth was modest at around 3.6%. Deliberate channel de-stocking by Page has kept volume growth volatile lately. Q2FY26 was the second consecutive quarter of low-single-digit volume growth, but the management expects the volatility to moderate hereon.
Page is confident that performance in the second half of the year (H2FY26) will be better than in H1, aided by the improved demand seen since the festive season began in late September.
It is banking on new launches to regain growth momentum. Page launched a new product line with bonded technology in bras and men’s innerwear in September, priced at a premium compared to Jockey’s range.
The management reckons the initial consumer response has been encouraging. JKY Groove athleisure continues to perform well. The Spring Season Collection saw huge success, and the winter line is expected to be launched within the next two weeks.
Meanwhile, Q2FY26’s sharp year-on-year gross margin expansion of 345 basis points was comforting, led by stable raw material prices and an efficient product sourcing strategy. Ebitda margin fell to 21.7%, hurt by higher staff costs. While still above management’s guided 19-21% range, Ebitda margin faces downside risk if revenue growth fails to pick up amid elevated marketing spends.
Premium range products are outperforming entry categories across innerwear, women’s wear, and athleisure. Weak sentiment for entry-level products is impacting the acquisition of new customers.
In this backdrop, various brokerages have lowered their earnings estimates for FY26 and FY27. “Overall performance over a longer period also has been muted versus its own historical performance; we note revenue/profit after tax growth over FY19-25 has been only in low double digits and FY26 also appears to be a dismal year,” said JM Financial Institutional Securities.
Despite growth woes, the stock trades at a rich FY27 price-to-earnings multiple of 50x, showed Bloomberg data.
