Meenakshi India Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Meenakshi India Ltd filed with BSE on 11 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Meenakshi India reported Q1 FY27 profit after tax of Rs. 712 lakhs, up from Rs. 281 lakhs a year earlier, with revenue from operations broadly flat at Rs. 3,224 lakhs versus Rs. 3,339 lakhs in the prior-year quarter. Management said the core garment business returned to positive operating profit after reporting an operating loss in the same quarter last year, while a large part of reported profit growth came from other income including unrealized fair value gains on investments and foreign currency forward contract gains. Management also discussed capacity expansion plans, geographic diversification into Sri Lanka and Nepal, and provided a conservative FY30 revenue and PAT target.
Numbers mentioned
Profit after tax: Rs. 712 lakhs (Q1 FY27)
p. 5
“For the quarter ended 30th June 2026, the company delivered a profit after tax of Rs. 712 lakhs as against Rs. 281 lakhs in the same quarter last year”
Shubhang Goenka, page 5 of the filed PDF · View the filing
Earnings per share: Rs. 6.34 (Q1 FY27)
p. 5
“Earnings per share came in at Rs. 6.34 for the quarter compared with Rs. 2.51 a year ago and Rs. 4.02 in quarter 4 of the previous year.”
Shubhang Goenka, page 5 of the filed PDF · View the filing
Revenue from operations: Rs. 3,224 lakhs (Q1 FY27)
p. 5
“Revenue from operations was Rs. 3,224 lakhs compared with Rs. 3,339 lakhs in Q1 of last year, lower by about 3.4% year-on-year”
Shubhang Goenka, page 5 of the filed PDF · View the filing
Operating profit of garment business: Rs. 343 lakhs (Q1 FY27)
p. 5
“The operating profit of the garment business, improved to Rs. 343 lakhs from Rs. 28.24 lakhs in the same quarter last year, a 12-fold improvement on a broadly similar top line.”
Shubhang Goenka, page 5 of the filed PDF · View the filing
Total expenses: Rs. 3,172 lakhs (Q1 FY27)
p. 5
“The total expenses for the quarter were Rs. 3,172 lakhs, down 6.9% year-on-year and almost 18.5% quarter-on-quarter.”
Shubhang Goenka, page 5 of the filed PDF · View the filing
Cost of materials: Rs. 1,472 lakhs (Q1 FY27)
p. 5
“cost of materials net of inventory changes was Rs. 1,472 lakhs which work out to about 45.7% of revenue, an improvement from roughly 48% last year”
Shubhang Goenka, page 5 of the filed PDF · View the filing
Employee benefit expense: Rs. 894 lakhs (Q1 FY27)
p. 5
“Employee benefit expense was at Rs. 894 lakhs, broadly flat year-on-year and 7.3% lower than Q4.”
Shubhang Goenka, page 5 of the filed PDF · View the filing
Other expenses: Rs. 747 lakhs (Q1 FY27)
p. 5
“Other expenses declined 7.3% year-on-year to Rs. 747 lakhs.”
Shubhang Goenka, page 5 of the filed PDF · View the filing
Finance cost: Rs. 9.98 lakhs (Q1 FY27)
p. 5
“Finance cost was just Rs. 9.98 lakhs and I will come back to you on what this says about our balance sheet.”
Shubhang Goenka, page 5 of the filed PDF · View the filing
Other income: Rs. 711 lakhs (Q1 FY27)
p. 5
“Other income for our quarter was Rs. 711 lakhs against Rs. 402.7 lakhs last year.”
Shubhang Goenka, page 5 of the filed PDF · View the filing
Unrealized fair value gain on investments: Rs. 372.64 lakhs (Q1 FY27)
p. 5
“It includes an unrealized fair gain value on investments of Rs. 372.64 lakhs and a net gain of Rs. 225.78 lakhs from the reversal and remeasurement of foreign currency forward contracts and realized investment gains of Rs. 32.91 lakhs.”
Shubhang Goenka, page 5 of the filed PDF · View the filing
Effective tax rate: about 6.6% (Q1 FY27)
p. 5
“The effective tax rate for the quarter was about 6.6% primarily because of unrealized fair value gains attracting minimal current tax until realization.”
Shubhang Goenka, page 5 of the filed PDF · View the filing
PAT margin on total income: about 18% (Q1 FY27)
p. 6
“PAT margin on total income was about 18%.”
Shubhang Goenka, page 6 of the filed PDF · View the filing
Core EBITDA margin: about 3.4% (Q1 FY27)
p. 6
“Our core EBITDA margin i.e. the garment business alone excluding our other income, turned positive at about 3.4% against a marginally negative number in the same quarter last year”
Shubhang Goenka, page 6 of the filed PDF · View the filing
Net worth: Rs. 142.65 crores (as on 30th June 2026)
p. 6
“The company's net worth stood at Rs. 142.65 crores as on 30th June a book value of about Rs. 127 per share up from Rs. 150.65 crores at March 26th.”
Shubhang Goenka, page 6 of the filed PDF · View the filing
Cash, bank balances and investments: approximately Rs. 80 crores
p. 6
“We are effectively debt-free with borrowings of under Rs. 1 crore and we held cash bank balances and investments of approximately Rs. 80 crores at the last balance sheet day.”
Shubhang Goenka, page 6 of the filed PDF · View the filing
FY25 EBITDA: 51 crores (FY25)
p. 15
“Historically, FY25, we had gross revenue of 191 lakhs. And our EBITDA at 51 lakhs, which includes…. 155 crores is the operational revenue and 191 crores is the gross revenue.”
Ashutosh Goenka, page 15 of the filed PDF · View the filing
Revenue contribution of top 5 clients: about 70%
p. 12
“I think it will be about 70% concentrated in the top 5 clients.”
Ashutosh Goenka, page 12 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
FY30 revenue — 500 crores · FY30
stated conditionally by Ashutosh Goenka
p. 13
“That is a conservative figure. We should be able to achieve this. The reason why we have given conservative figures is because the FTAs are not fully operational yet.”
Ashutosh Goenka, page 13 of the filed PDF · View the filing
Capacity utilization — 70% capacity · FY2027
stated as an aspiration by Shubhang Goenka
p. 10
“At the moment, our expectation is to be utilizing close to 70% capacity in FY2027.”
Shubhang Goenka, page 10 of the filed PDF · View the filing
EBITDA margin — about 17% · FY28
stated as an aspiration by Shubhang Goenka
p. 13
“We are targeting to hit a margin of about 17%. By FY28.”
Shubhang Goenka, page 13 of the filed PDF · View the filing
Capex for new factory — 20 crores · 2028
stated firmly by Vivek Bahety
p. 9
“We are looking forward to putting one factory in 2028 and that will cost 20 crores for one factory.”
Vivek Bahety, page 9 of the filed PDF · View the filing
Capex for second factory — similar cost · FY2030
stated firmly by Vivek Bahety
p. 9
“And the second factory, we are looking at FY2030. That will again have a similar cost.”
Vivek Bahety, page 9 of the filed PDF · View the filing
Capacity utilization target — 80%
stated as an aspiration by Ashutosh Goenka
p. 12
“80% is a good target for capacity utilization.”
Ashutosh Goenka, page 12 of the filed PDF · View the filing
Capacity utilization — 70% · FY27
stated as an aspiration by Shubhang Goenka
p. 12
“We are hoping by FY27, we should hit 70%. And then FY28, we start to use the balance.”
Shubhang Goenka, page 12 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said they chose to avoid competing with mass-market hubs like Bangladesh and Vietnam and instead built capabilities for premium, value-added products.
Answered by Ashutosh Goenka
Asked by Rishikesh Rajesh Shah: Why has Meenakshi consistently focused on premium bottom ware rather than mass-market apparel?
p. 6
“we have always concentrated on premium bottom ware segment because we feel that competing against mass market brands like the mass market production center like Bangladesh and Vietnam is going to be difficult.”
Ashutosh Goenka, page 6 of the filed PDF · View the filing
Management said tariffs hit premium players proportionally more given higher selling prices, but Meenakshi shared less of the burden than many mass-market peers.
Answered by Ashutosh Goenka
Asked by Rishikesh Rajesh Shah: Did being a premium manufacturer help pass on tariff costs better than mass-market competitors?
p. 7
“It doesn't matter whether we are premium or mass market when it comes to tariffs. In fact, the impact on their selling price is much higher than the impact that low-cost countries had or low cost products will have.”
Ashutosh Goenka, page 7 of the filed PDF · View the filing
Management said the Sri Lanka arrangement is a contingency for US tariff risk, not a shift of production out of India, and would only be used in extreme conditions.
Answered by Shubhang Goenka
Asked by Rishikesh Rajesh Shah: Why is the company setting up contract manufacturing in Sri Lanka if Indian demand and capacity headroom exist?
p. 9
“The Sri Lankan agreement was done only to tide over the tariff issues. We have got that agreement in place. We have not luckily had the need to use it.”
Shubhang Goenka, page 9 of the filed PDF · View the filing
Management indicated roughly Rs 40-50 crore of capex across two factories, phased through FY28 and FY30.
Answered by Ashutosh Goenka
Asked by Rishikesh Rajesh Shah: What capex is planned for capacity expansion over FY27-FY30?
p. 10
“Yes. These are ballpark figures, you know, very, very ballpark figures. I would rather say 40-50 crores.”
Ashutosh Goenka, page 10 of the filed PDF · View the filing
Management said revenue is roughly split between Europe and the US with Europe's share rising, and that tariff effects have not fully normalized though customers have been retained.
Answered by Shubhang Goenka
Asked by Rhea Patel: What is the geographic revenue split and current state of US tariff impact?
p. 10
“we are more or less 50-50 between Europe and the U.S. We have a small customer base out of Australia and another small customer base out of the Middle East.”
Shubhang Goenka, page 10 of the filed PDF · View the filing
Management said they offered price discounts to US customers and delayed shipments to time favorable tariff windows, which pressured margins.
Answered by Shubhang Goenka
Asked by Rhea Patel: What steps were taken to mitigate US tariff effects?
p. 11
“Essentially, if you see, our margins took a hit because of the discounts that we offered to the customers to retain them.”
Shubhang Goenka, page 11 of the filed PDF · View the filing
Management said margins are moving toward but not fully back to pre-tariff levels, targeting about 17% by FY28.
Answered by Shubhang Goenka
Asked by Jagdish Sharma: Will the company reach pre-tariff EBITDA margins?
p. 12
“We are not going to reach pre-tariff EBITDA margin entirely. But we are moving towards that as evidenced by the 1st Quarter.”
Shubhang Goenka, page 12 of the filed PDF · View the filing
Management clarified that FY25 EBITDA included a one-off exceptional item from land sale and reiterated the FY30 targets are deliberately conservative pending FTA implementation.
Answered by Ashutosh Goenka
Asked by Jagdish Sharma: Isn't the FY30 guidance of 500 crore revenue and 65 crore PAT too conservative given FY25 already achieved higher EBITDA?
p. 13
“No. I will correct you here. In FY25, there was an exceptional income of about 12.5 crores. So, we have taken that out.”
Ashutosh Goenka, page 13 of the filed PDF · View the filing
Management clarified this was a direct listing on BSE, not an IPO, and no funds were raised.
Answered by Ashutosh Goenka
Asked by Jignesh: What was the reason for listing and how have proceeds been used?
p. 15
“We have not done an IPO. We were listed on Calcutta Stock Exchange, as you know, which has been non-functional for the past 25 years. We just went for direct listing on BSE.”
Ashutosh Goenka, page 15 of the filed PDF · View the filing
Management pointed to the Sri Lanka MOU for alternate country-of-origin production and potential future plants outside India to hedge geopolitical risk.
Answered by Shubhang Goenka
Asked by Disha: What are management's plans to mitigate future US trade-related risks?
p. 16
“we have got an MOU with a Sri Lankan contract manufacturer that helps you change the country of origin. So, if something were to happen on goods made in India, we can offer our customers goods made in Sri Lanka as well.”
Shubhang Goenka, page 16 of the filed PDF · View the filing
Risks flagged
US tariff volatility and unpredictable policy changes
p. 9
“what we have been seeing in the past 1-1.5 years is a change in the policy of the US every now and then.”
Shubhang Goenka, page 9 of the filed PDF · View the filing
Reduced US volumes due to tariffs and customer overstocking
p. 11
“Volumes have reduced. It's a blend of tariff related reasons as well as overstocking on the customer side.”
Shubhang Goenka, page 11 of the filed PDF · View the filing
Margin pressure from discounts offered to retain US customers during tariff period
p. 11
“our margins took a hit because of the discounts that we offered to the customers to retain them.”
Shubhang Goenka, page 11 of the filed PDF · View the filing
Uncertainty over FTA implementation timing affecting guidance
p. 13
“The reason why we have given conservative figures is because the FTAs are not fully operational yet.”
Ashutosh Goenka, page 13 of the filed PDF · View the filing
Patent issues delaying D2C brand entry
p. 8
“we ran into some patent issues with SHORTSTOP. So, for the time being, since we have not invested much in the brand and our test marketing was not very far ahead, we put that on hold as of now until we are able to sort out this patent issue.”
Ashutosh Goenka, page 8 of the filed PDF · View the filing
Geopolitical concentration risk from reliance on single-country manufacturing
p. 9
“Nepal, since before the quota regime already had this industry in a very big way, has available labor, cheaper labour and capability, skill levels are available. So, that is something we will definitely look at to diversify geographical manufacturing risk.”
Shubhang Goenka, page 9 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.