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Informist, Thursday, May 21, 2026

By Shakshi Jain and Anand JC

NEW DELHI – Apparel manufacturer and distributor Page Industries Ltd. plans to undertake a price hike in the ongoing quarter to pass on the inflationary impact of higher input costs, the management said in a post-earnings conference call with analysts Thursday. The garment-maker is, however, yet to take a call on the quantum of increase. 

This will follow calibrated price increases in January across select styles on account of product upgrades and enhancement, which added up to a weighted average increase of 2%. The company, however, saw a minimal revenue contribution from this exercise in Jan-Mar as the benefit started accruing from March. The management credited the sales mix and premiumisation trend for the revenue growth in the quarter.

For the March quarter, the company reported a net profit of INR 1.79 billion, up 9% on year. Its revenue from operations rose over 14% on year to INR 12.53 billion for the three months. Page Industries sold 54.5 million pieces of apparel in Jan-Mar, reflecting a volume growth of nearly 11% year-on-year.

For 2026-27 (Apr-Mar), the company is targeting an operating margin of 19-21% after reaching the 22% milestone in FY26. "...There are going to be investments in technology, which is unprecedented as far as Page is concerned in the previous years. So that's going to add to costs," a top company executive said, adding that this guidance also factors in a higher marketing expense at 5%, and higher salary and input costs.

The management attributed the higher operating margin in FY26 to lower marketing spends.  

On a seperate note, the company made a conscious call to build up inventory, both as a hedging technique and due to the anticipated increase in raw material prices, and to ensure an adequately strong supply, the management said.

The management holds a positive outlook for the coming quarters due to underlying demand and is banking on volume-driven growth in the ongoing financial year. It aims to maintain a double-digit volume growth in FY27. "If it comes to a stage where we will need to touch (hike) prices to the extent that it's going to affect volumes, we would rather restrain from doing that given the healthy margins that we operate with and absorb that in the margins temporarily," the management said.

It further explained that it is a choice for the company to not fully pass on the inflationary impact, to hold on or grow market share while keeping demand intact--given its healthy margins.  

Among other plans, after implementing an auto-replenishment system to streamline inventory, the company will be undertaking implementation of a new distribution management system.

On the larger market scenario, the management admitted to some consolidation and reduced competititive intensity than in the past. It sees the likelihood of further consolidation in the game. "...The number of brands itself has come down, and even the brands that continue to operate, their intensity with which they are activating the consumer, either through discounts or through marketing or through schemes, has also come down," a company executive said.

Thursday, shares of the company closed 0.3% higher at INR 38,380 on the National Stock Exchange.  End

Edited by Akul Nishant Akhoury

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