Why Page Industries shares plunged 13% after Q2 results; FEMA issue adds to concerns

Shares of Page Industries, the exclusive licensee of Jockey and Speedo in India, plunged 12.91% to ₹31,850 on Thursday, November 12, following its September-quarter results. The sharp selloff came despite double-digit revenue growth, as slower profit growth, margin pressure and a regulatory disclosure weighed on investor sentiment.

The company reported revenue from operations of ₹1,439.6 crore in Q2 FY27, up 11.5% year-on-year (YoY). However, sales volumes increased just 5.5% to 59.7 million pieces. EBITDA rose 7.4% to ₹300.1 crore, while profit after tax (PAT) increased 4% to ₹202.5 crore.

EBITDA margin contracted to 20.8% from 21.7% in the year-ago quarter, while PAT margin declined to 14.1% from 15.1%.

Profit growth lags revenue as input costs remain elevated

Page Industries' first-half performance indicated the pressure on earnings. Revenue increased 9.7% to ₹2,860.1 crore in H1 FY27, but EBITDA grew just 2.6% to ₹589.1 crore. PAT remained broadly flat at ₹395.4 crore against ₹395.6 crore a year earlier. EBITDA margin declined to 20.6% from 22%.

Management attributed the pressure partly to elevated input costs. V.S. Ganesh, managing director of Page Industries, said, “While raw material costs remained elevated, our profitability has remained within our planned range.”

In its management commentary, the company said cotton prices remained expensive and volatile, while crude-linked raw materials continued to be significantly above earlier levels. It said it had absorbed part of the inflation despite implementing price increases in the first quarter.

RBI returns FEMA compounding application

A regulatory disclosure in the results filing also drew attention. Page Industries acknowledged that it had sold Jockey and Speedo products, including imported merchandise, through e-commerce without establishing physical retail stores, which was not compliant with retail trading provisions under the Foreign Exchange Management (Non-Debt Instruments) Rules, 2019.

The company had applied to the Reserve Bank of India (RBI) for compounding on May 20, 2026. However, the central bank returned the application on October 16, advising it to first obtain post-facto approval from the government.

Management is seeking the approval and plans to reapply for compounding thereafter. The company expects the contravention to be compounded and said the financial impact, if any, is unlikely to be material.

Management remains optimistic about demand

Despite the margin pressures, Ganesh said the company saw “positive demand trends” and a “strong consumer response” to new launches. He also highlighted an “exciting pipeline of new product ranges” and operational efficiency initiatives.

Page Industries expects festive-season demand to support growth, while expanded manufacturing capacity, streamlined processes and technology-led productivity improvements are expected to help reduce costs.