Rupa & Company sees volume-driven growth, guides to 9-10% EBITDA margin
Athleisure rebound and price hikes boost margins but competitive pressures persist.
What management said
- Q4 revenue up 6.3% to INR 441.5 cr, volume up 9%
- EBITDA margin expanded 150 bps to 12.5% on athleisure sales
- Guidance: FY27 revenue growth 10-12% volume-led, EBITDA margin 9-10%
- Price hikes of 4-5% taken in April, another 2-3% planned in June/July
- Capex of INR 60 cr over 2 years for new facility in West Bengal
The brief
Q4 revenue was INR 441.5 crore. Volume grew 9%. EBITDA margin expanded to 12.5% on stronger athleisure sales. Price hikes of 4-5% were taken in April, and management plans another 2-3% hike in June or July, aiming to sustain margins. FY27 guidance targets 10-12% revenue growth, with volume contributing roughly half. EBITDA margin is expected at 9-10%. Challenges persist from raw material costs and shipping disruptions. The board proposed a INR 3 dividend. A INR 60 crore capex over two years will fund a new West Bengal facility. Athleisure and price hikes offer a cushion, but competitive intensity remains high.
In their words
“Volume growth of 20% in quarter four and value growth is 25% for athleisure. This is the main trigger point for improvement in gross margin.”— Vikash Agarwal — Whole-time Director
“With this initial price hike and acceptability in the market, we hope that we'll sustain this gross margin.”— Vikash Agarwal — Whole-time Director
Summarised from the Rupa & Company Limited Q4 2026 earnings-call transcript. View transcript.