Pricing normalization expected within 2-3 quarters
Management expects competitive pricing pressure to moderate in the next 2-3 quarters as yarn prices firm up and rationalized pricing translates to volume recovery.
RUPA / guidance tracker
Keep management guidance in view.
Rupa & Company · forward-looking guidance across the available source record.
Research layer active
Guidance tracker
What management said would happen.
margins
Routine capex of INR 12-15 crores annually
No major capex planned; routine maintenance capex of INR 12-15 crores per year with annual advertising budget at 6-7% of revenue.
Focus on new channels for growth acceleration
Company building dedicated teams for modern trade, e-commerce, and exports with new product launches in women's wear, activewear, and value-priced ranges.
FY27 Revenue Growth: 10-12%
Management targets 10-12% revenue growth for FY27, led by balanced contribution from volume growth of 4-5% and value growth of 5-6%.
FY27 EBITDA Margin: 9-10%
Company expects EBITDA margin to be in the range of 9-10% for FY27, with gross margin improvement expected to sustain due to recent price hikes.
FY27 Ad Spend: 6-7% of Revenue
Advertisement expenses are projected at 6-7% of revenue for FY27, up from ~4% in Q4 FY26, with increased focus on digital platforms.
Capex: ₹60 Crores Over 2 Years
Company will develop in-house manufacturing capacity from warehousing facility at West Bhavan with total outlay of ₹60 crores spread over two years.