Rupa & Company Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Rupa & Company Ltd filed with BSE on 03 Jun 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
Rupa & Company reported Q4 FY26 revenue of Rs 441.5 crore, up 6.3% year-on-year, with 9% volume growth and EBITDA margin at 12.5%. For the full year FY26, revenue grew 1.6% to Rs 1,259.1 crore while EBITDA declined 11.6% and EBITDA margin contracted to 9.2% from 10.5% in FY25. Management guided for FY27 revenue growth of 10% to 12% and an EBITDA margin range of 9% to 10%, citing planned capex of Rs 60 crore over two years for a new manufacturing-cum-warehousing facility.
Numbers mentioned
Revenue: INR441.5 crores (Q4 FY26)
p. 3
“Revenue for Q4 financial year '26 stood at INR441.5 crores, registering a growth of 6.3% year-on-year.”
Vikash Agarwal, page 3 of the filed PDF · View the filing
Volume growth: 9% (Q4 FY26)
p. 3
“The company recorded a strong volume growth of 9% during the quarter, reflecting improved market traction, focusing execution and strengthening consumer demand across our product portfolio.”
Vikash Agarwal, page 3 of the filed PDF · View the filing
EBITDA: INR55 crores (Q4 FY26)
p. 4
“EBITDA for the quarter stood at INR55 crores, with EBITDA margin at 12.5%,”
Vikash Agarwal, page 4 of the filed PDF · View the filing
EBITDA margin: 12.5% (Q4 FY26)
p. 4
“EBITDA margin for the quarter stood at 12.5%, improved by 150 basis points year-on-year.”
Sumit Khowala, page 4 of the filed PDF · View the filing
Net profit after tax: INR36.1 crores (Q4 FY26)
p. 4
“Net profit after tax for the quarter stood at INR36.1 crores as against INR30.6 crores in quarter 4 FY25, registering a growth of 18.1% year-on-year basis.”
Sumit Khowala, page 4 of the filed PDF · View the filing
PAT margin: 8.2% (Q4 FY26)
p. 5
“PAT margin for the quarter stood at 8.2%, improving by 80 basis points year-on-year basis.”
Sumit Khowala, page 5 of the filed PDF · View the filing
Revenue: INR1,259.1 crores (FY26)
p. 5
“Revenue from operations for FY26 stood at INR1,259.1 crores as compared to INR1,239 crores in FY25, registering a growth of 1.6% year-on-year.”
Sumit Khowala, page 5 of the filed PDF · View the filing
EBITDA: INR115.3 crores (FY26)
p. 5
“EBITDA for FY26 stood at INR115.3 crores as compared to INR130.4 crores in FY25, we see a de-growth of 11.6% year-on-year.”
Sumit Khowala, page 5 of the filed PDF · View the filing
EBITDA margin: 9.2% (FY26)
p. 5
“EBITDA margin for FY26 stood at 9.2% against 10.5% in FY25.”
Sumit Khowala, page 5 of the filed PDF · View the filing
Net profit after tax: INR72.5 crores (FY26)
p. 5
“Net profit after tax for FY26 stood at INR72.5 crores as against INR83.3 crores in FY25.”
Sumit Khowala, page 5 of the filed PDF · View the filing
PAT margin: 5.8% (FY26)
p. 5
“PAT margin for FY26 stood at 5.8% as compared to 6.7% in FY25.”
Sumit Khowala, page 5 of the filed PDF · View the filing
Operating cash flow: INR45 crores (FY26)
p. 4
“Operating cash flow for financial year '26 stood at INR45 crores demonstrating our continued focus on prudent cash management and working capital efficiency.”
Vikash Agarwal, page 4 of the filed PDF · View the filing
Cash surplus: INR33 crores (as of March 31, 2026)
p. 4
“As of March 31, 2026, our cash surplus further improved to INR33 crores reflecting the strength of our balance sheet and healthy liquidity position.”
Vikash Agarwal, page 4 of the filed PDF · View the filing
Exports contribution to revenue: 3% (FY26)
p. 3
“Exports contributed 3% to overall revenues during FY26, while modern trade including e-commerce,”
Vikash Agarwal, page 3 of the filed PDF · View the filing
Modern trade including e-commerce contribution to revenue: 5% (FY26)
p. 4
“contributed 5% to revenues during the year, reflecting our major and strategic channel expansion efforts in a competitive market environment.”
Vikash Agarwal, page 4 of the filed PDF · View the filing
Proposed dividend: INR3 per equity share (FY26)
p. 4
“the Board has proposed subject to shareholders' approval a dividend of INR3 per equity share for financial year '26.”
Vikash Agarwal, page 4 of the filed PDF · View the filing
Advertisement spend: around 4% (Q4 FY26)
p. 5
“The advertisement spend for the quarter is around 4%.”
Sumit Khowala, page 5 of the filed PDF · View the filing
Trade discount intensity: around 12% (Q4 FY26)
p. 9
“It's around 12%.”
Sumit Khowala, page 9 of the filed PDF · View the filing
Athleisure volume growth: 20% (Q4 FY26)
p. 8
“there is a volume growth of 20% in quarter 4 and value growth is 25% for Athleisure.”
Sumit Khowala, page 8 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.
Revenue growth — 10% to 12% · FY27
stated firmly by Vikash Agarwal
p. 4
“We project revenue growth of 10% to 12% in financial year '27, largely led by volumes and expect our EBITDA margin to be in the range of 9% to 10%.”
Vikash Agarwal, page 4 of the filed PDF · View the filing
EBITDA margin — 9% to 10% · FY27
stated firmly by Vikash Agarwal
p. 4
“expect our EBITDA margin to be in the range of 9% to 10%.”
Vikash Agarwal, page 4 of the filed PDF · View the filing
Capex — INR60 crores · 2 years
stated firmly by Sumit Khowala
p. 5
“there will be a total outlay of INR60 crores, which will be spent in 2 years' time.”
Sumit Khowala, page 5 of the filed PDF · View the filing
Advertisement expense — 6% to 7% · FY27
stated firmly by Sumit Khowala
p. 5
“the next year guidance would be the advertisement expenses would be in the range of 6% to 7% for FY27.”
Sumit Khowala, page 5 of the filed PDF · View the filing
Price hike — 2% to 3% · June, July
stated conditionally by Vikash Agarwal
p. 6
“we might take another price hike maybe 2%, 3% in June, July, depending on the market condition.”
Vikash Agarwal, page 6 of the filed PDF · View the filing
Volume and value split of revenue growth — 4%-5% each · FY27
stated as an aspiration by Vikash Agarwal
p. 6
“Volume maybe 4%, 5%. Largely it will be a mix of both 4%, 5% each,”
Vikash Agarwal, page 6 of the filed PDF · View the filing
Gross margin — going forward quarter
stated conditionally by Sumit Khowala
p. 9
“With this initial price hike, we hope that the gross margin would be at the same level going forward quarter.”
Sumit Khowala, page 9 of the filed PDF · View the filing
Profitability improvement — 50 basis points year-on-year · next couple of years
stated as an aspiration by Vikash Agarwal
p. 10
“we target a growth of 10% to 12% for the next couple of years. And with that, every year maybe profitability, should help us increase the profitability by 50 basis points year-on-year.”
Vikash Agarwal, page 10 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 the company will build manufacturing-cum-warehousing facilities in West Bengal with a total outlay of Rs 60 crore over two years.
Answered by Sumit Khowala
Asked by Preeti Agarwal: What is the capex plan for FY27?
p. 5
“During FY27, the company will strengthen its in-house capacity by developing manufacturing cum warehousing facilities.”
Sumit Khowala, page 5 of the filed PDF · View the filing
Management said there was no direct business impact but noted higher raw material costs, shipping disruptions and forex volatility as challenges.
Answered by Vikash Agarwal
Asked by Yash Mehta: Is there any impact of the U.S.-Iran war amid Middle East disruptions?
p. 5
“There is no potential impact on the business, but business is facing some challenges, such as increase in price of crude would lead to the rise in the prices of raw material.”
Vikash Agarwal, page 5 of the filed PDF · View the filing
Management confirmed a price hike already taken and indicated a further hike may follow depending on market conditions.
Answered by Vikash Agarwal
Asked by Vruddhi Vohra: Has the company taken price hikes given intense industry price competition, and are more planned?
p. 6
“We have taken a price hike of around 4% to 5% in April and we might take another price hike maybe 2%, 3% in June, July, depending on the market condition.”
Vikash Agarwal, page 6 of the filed PDF · View the filing
Management attributed it to higher gross margin driven by a change in product mix as Athleisure grew well.
Answered by Sumit Khowala
Asked by Sajal Trivedi: What is the main reason for the increase in EBITDA in Q4 FY26?
p. 6
“The main reason for increase in EBITDA in quarter 4 is because of increasing gross margin.”
Sumit Khowala, page 6 of the filed PDF · View the filing
Management gave the inventory composition percentages.
Answered by Sumit Khowala
Asked by Nidhi Sharma: What is the split of inventory into raw materials, finished goods and work in progress?
p. 6
“The split of inventory, the raw material is around 13%. The finished goods is around 54% and work in progress is around 33%.”
Sumit Khowala, page 6 of the filed PDF · View the filing
Management explained it is an arbitrage between investing surplus at higher fixed deposit rates versus the borrowing rate.
Answered by Sumit Khowala
Asked by Shubhankar Gupta: Why increase short-term debt while holding cash surplus?
p. 7
“There is an arbitrage, I mean what we do basically is that we invest in a fixed deposit at a higher rate than our borrowing rate.”
Sumit Khowala, page 7 of the filed PDF · View the filing
Management said strong Athleisure volume and value growth was the main driver of the gross margin improvement.
Answered by Sumit Khowala
Asked by Darshan Shah: What drove the sharp rebound in gross margin in Q4?
p. 8
“The main reason is that the athleisure contributes well in this quarter 4, there is a volume growth of 20% in quarter 4 and value growth is 25% for Athleisure.”
Sumit Khowala, page 8 of the filed PDF · View the filing
Management said the discount level remains around 12%.
Answered by Sumit Khowala
Asked by Rajiv Jain: Has the 12% trade discount intensity reduced in Q4 or is it still elevated?
p. 9
“It's around 12%.”
Sumit Khowala, page 9 of the filed PDF · View the filing
Management said they are targeting 10-12% growth for the next couple of years with an annual profitability improvement of 50 basis points, focused on strengthening the retail and secondary sales network.
Answered by Vikash Agarwal
Asked by Vinay Kumar: What is the 3-5 year roadmap for sales growth and profitability given historically low CAGR?
p. 10
“So, we target a growth of 10% to 12% for the next couple of years. And with that, every year maybe profitability, should help us increase the profitability by 50 basis points year-on-year.”
Vikash Agarwal, page 10 of the filed PDF · View the filing
Risks flagged
Rising crude prices leading to higher raw material costs
p. 5
“increase in price of crude would lead to the rise in the prices of raw material.”
Vikash Agarwal, page 5 of the filed PDF · View the filing
Global shipping disruptions raising logistics and freight costs
p. 5
“there is a global disruption in shipping routes, so logistics and freight costs are higher and there is a foreign exchange volatility.”
Vikash Agarwal, page 5 of the filed PDF · View the filing
Intense pricing competition in the industry
p. 9
“In Q3, there was also a volume growth and there was an intense pricing competition. The same way we are facing quarter 4 also.”
Sumit Khowala, page 9 of the filed PDF · View the filing
Market is a buyer's market requiring discounts in line with competition
p. 9
“The market is totally buyer's market. So, it totally depends on how market behaves. We have to give discounts in line with the market.”
Sumit Khowala, page 9 of the filed PDF · View the filing
Uncertainty in yarn and cotton prices affecting margin sustainability
p. 9
“It all depends upon the yarn prices and the cotton prices going forward.”
Vikash Agarwal, 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.