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Informist, Tuesday, Aug. 5, 2025

By Shakshi Jain

NEW DELHI – Page Industries Ltd. is expected to post steady year-on-year growth in its top line for the June quarter owing to a change in its product mix and higher volumes. Its bottom-line growth is expected to outpace the rise in volumes, helped by marginal improvement in realisations, favourable raw material prices, and better cost control, according to analysts tracking the company.

The apparel manufacturer and distributor's net profit for Apr-Jun is likely to rise 19% on year to INR 1.97 billion, according to the average of estimates from seven brokerages. Sequentially, profit after tax is expected to grow 20%. The highest estimate for net profit was INR 2.11 billion by Dolat Capital Market Pvt. Ltd. and the lowest was INR 1.91 billion from Emkay Global Financial Services Ltd.

The company's revenue for the reporting quarter is seen rising 10% on year and 27% sequentially to INR 14.00 billion. The highest estimate for revenue was INR 14.34 billion by Motilal Oswal Financial Services Ltd. and the lowest was INR 13.54 billion by Nuvama Wealth Management Ltd. Page Industries will announce its June quarter earnings Thursday.

For the March quarter, the bottom line of Page Industries jumped nearly 52% on year to INR 1.64 billion while its top line had grown 11% to INR 10.98 billion. Sequentially, the net profit of the apparel company had declined 20% and the revenue had fallen 16% in Jan-Mar.

Kotak Institutional Equities said the company's revenue growth during the June quarter was primarily driven by normalisation of demand for core categories and some pick-up in the athleisure segment. "Revenue growth will be largely volume-driven, although we expect some positive movement in blended realisation also," the brokerage added in its report.

Page Industries is expected to report earnings before interest, tax, depreciation, and amortisation of INR 2.89 billion for the reporting quarter, according to the average of estimates from six brokerages. The EBITDA estimates ranged from a low of INR 2.83 billion by Kotak Institutional Equities to a high of INR 3.06 billion by Dolat Capital.

Brokerages see the company's EBITDA margin expanding 110-150 basis points in the reporting quarter on the back of low raw material prices, higher cost efficiencies, and a slight improvement in realisations, which are expected to have grown in low single digits during the quarter. Kotak Institutional Equities said the commencement of the company's Odisha plant during the June quarter may have resulted in some start-up costs, which may have limited the expansion of its EBITDA margin.

Emkay Global said the online channel continues to see robust growth, followed by exclusive brand outlets, while the general trade channel is seeing muted demand. Motilal Oswal said primary and secondary sales of the company are now expected to be aligned, reversing the trend observed in the past few quarters. Weak urban consumption remains a cause for concern, but a normalised trade inventory can enable better primary growth, the brokerage added. Primary sales refer to the movement of goods from the manufacturer or supplier to distributors. Secondary sales mean the sale of goods from a distributor to retailers.

Tuesday, shares of the company ended at INR 45,730 on the National Stock Exchange, down 1.2%. The stock is down 6.7% since the company reported its results for the March quarter on May 15. The stock is also down 9.6% from its 52-week high of INR 50,590, reached on Jun. 27.

Among the 10 research recommendations on the stock available with Informist, five have a "buy" rating on Page Industries while two have a "hold" rating and three have a "sell" recommendation. The average target price of the "buy" recommendations is INR 48,748 and that of the "sell" calls is INR 44,203.

Following are the Apr-Jun earnings estimates for Page Industries, in INR million, based on reports from seven brokerages in descending order of net profit:

End

Edited by Nishant Maher

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