Rupa & Company targets 10-12% revenue growth for FY27
The knitwear maker plans to lift margins through price hikes and a sales team overhaul after a 12.9% drop in annual profit.
— 4 earlier stories on Rupa & Company Ltd. →What's new
- Management targets FY27 revenue growth of 10-12% and EBITDA margins of 9-10%.
- Q4 EBITDA margins rose 150 bps to 12.5% on a 25% jump in athleisure sales.
- Full-year net profit fell 12.9% to ₹73 cr due to pricing pressure.
Why this matters
Rupa is attempting to defend its margins through a 4-5% price hike implemented in April, with more potentially coming in June. The company's reliance on a sales team reorganization suggests management is trying to counter the intense competition that eroded annual profits.
What we're watching
- Whether the June price hike proceeds as planned.
- If the new sales leadership can sustain the momentum seen in Q4 athleisure sales.
- Actual EBITDA margins against the 9-10% guidance range.
The full read
Rupa & Company is betting on a sales team reorganization and aggressive pricing to recover from a difficult year.
It needs to.
While the company reported a 12.9% decline in annual net profit to ₹73 crore due to intense competition, its Q4 performance offered a reprieve. A 25% surge in athleisure sales pushed Q4 EBITDA margins up by 150 basis points to 12.5%. Management is now looking ahead, guiding for 10-12% revenue growth in FY27 with EBITDA margins of 9-10%. To protect these targets, the company already pushed through a 4-5% price hike in April and is keeping the door open for another round in June. The strategy is clear: trade volume for margin stability in a crowded market. Whether the new sales heads can execute this shift remains the primary test for the coming quarters.
Questions answered
- What is the company's outlook for FY27?
- Management expects revenue growth of 10-12% and EBITDA margins between 9% and 10%.
- Why did annual profits decline?
- Net profit fell 12.9% to ₹73 crore, driven by intense market competition and pricing pressure.
- What drove the Q4 margin improvement?
- EBITDA margins expanded by 150 basis points to 12.5% in the final quarter, primarily due to a 25% surge in athleisure sales.
- How is the company responding to pricing pressure?
- Rupa implemented a 4-5% price hike in April and is considering further increases in June.
Rupa & Company Ltd.
Latest quarter · Mar 2026
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All notes on RUPA →- 26 May 2026 · 6:49 PM IST Rupa & Company targets 10-12% revenue growth for FY27
- 46d ago Rupa & Company board approves final dividend of ₹3 per share
- 46d ago Rupa & Company declares ₹3 dividend as annual profit slips 13%
- 46d ago Rupa & Company declares ₹3 dividend as annual profits slip 13%
- 46d ago Rupa's full-year profit drops 13%, but Q4 jumps 18%