DOLLAR - Dollar Industrie

📊 NSE: DOLLAR 🏢 Textiles - Products 📅 Last Updated: 12/13/2025 21:38

💰 Financial Performance

Revenue Growth by Segment

Dollar Always contributed 41% of H1FY26 revenue, followed by Dollar Man at 37%. The Athleisure segment contributes approximately 13% to total sales, while Dollar Thermal, a high-margin product, accounts for 9%. The premium segment witnessed a significant 25.1% volume growth YoY in Q2FY26.

Geographic Revenue Split

Domestic sales accounted for INR 1,644.69 Cr (96.1%) of FY25 revenue, while exports contributed INR 65.77 Cr (3.9%). South India is a key growth region, delivering 8% value growth and 10.4% volume growth YoY in Q2FY26.

Profitability Margins

Gross profit margin stood at 34.8% in Q2FY26, up 127 bps YoY. PAT margin improved to 7.4% in Q2FY26 from 5.9% in Q2FY25, reflecting a 151 bps expansion driven by cost discipline and better product mix.

EBITDA Margin

Operating EBITDA margin expanded by 183 bps YoY to 12.8% in Q2FY26. For H1FY26, EBITDA margin improved to 11.89% from 10.56% in H1FY25, primarily due to stabilized raw material prices and a reduction in advertising expenses from 7.2% to 6.2% of operating income.

Capital Expenditure

The company stated there are no major Capex plans in the near term as of September 2025, focusing instead on strengthening free cash flow and debt reduction. Net fixed assets stood at INR 272.7 Cr as of September 30, 2025.

Credit Rating & Borrowing

The company maintains a strong financial risk profile with a gearing of 0.36 times as of March 2024. Net debt stood at INR 322.2 Cr as of September 2025, with a comfortable net debt to EBITDA ratio of 1.56, improving from 1.80 in FY25.

⚙️ Operational Drivers

Raw Materials

Cotton and Yarn are the primary raw materials. Their price stabilization has been a key driver for the recovery of operating margins from 10.02% in FY24 to 11.89% in H1FY26.

Capacity Expansion

Current installed capacity is not explicitly stated in units; however, the company expects fixed cost rationalization and operating leverage to kick in significantly once revenue crosses the INR 2,000 Cr mark.

Raw Material Costs

Raw material costs are reflected in the gross margin of 34.8%. The company benefits from the stabilization of cotton and yarn prices, which previously caused margin compression when they could not be passed on to consumers during price spikes.

Manufacturing Efficiency

The company operates an integrated value chain. Efficiency is being driven by operating leverage and cost optimization, with a target to reach sustainable long-term EBITDA margins of 14%.

Logistics & Distribution

The company is focusing on an omni-channel footprint, enhancing SKU depth across modern trade and e-commerce to drive higher contributions from premium products.

📈 Strategic Growth

Expected Growth Rate

12%

Growth Strategy

Growth will be achieved through a 11-12% volume-driven revenue target for FY26, focusing on the South India market (targeting 20% of domestic revenue), expanding e-commerce and modern trade presence, and shifting the product mix toward high-margin premium design-led offerings.

Products & Services

Innerwear (vests, briefs), thermals, athleisure wear, and health-focused products like 'Dollar Protect' masks.

Brand Portfolio

Bigboss, Dollar Always, Dollar Man, Dollar Thermal, Dollar Protect.

New Products/Services

Launched 'Dollar Protect' under the umbrella brand. The premium segment, featuring design-led products, is a major focus, growing 25.1% in volume in Q2FY26.

Market Expansion

Targeting a 50% sales increase in South India to generate 20% of total domestic revenue. Also strengthening omni-channel and e-commerce footprints.

🌍 External Factors

Industry Trends

The industry is seeing a shift toward premium, design-led products and increased consumer preference for elevated offerings. E-commerce and modern trade are becoming significant growth drivers.

Competitive Landscape

Intense competition from established foreign brands, domestic readymade garment manufacturers, and players spending heavily on brand-building.

Competitive Moat

Moat is built on a multi-brand portfolio covering various price points, an integrated value chain, and a strong brand legacy spanning over three decades. Sustainability is reinforced by a promoter trust holding 50% stake for long-term stability.

Macro Economic Sensitivity

Highly sensitive to cotton and yarn price cycles. Operating margins fell to 7.26% in FY23 due to raw material spikes but recovered to 10.53% in FY25 as prices stabilized.

Consumer Behavior

Increasing preference for premium design-led products and non-male user categories, alongside a shift toward online and modern trade purchasing.

⚖️ Regulatory & Governance

Industry Regulations

The company emphasizes compliance with all relevant laws and regulations and has measures to prevent and detect fraudulent activity.

Environmental Compliance

The company is adopting eco-friendly practices, including a zero-discharge technique with an evaporation system for sustainability.

⚠️ Risk Analysis

Key Uncertainties

Raw material price volatility (cotton/yarn) and high attrition rates in human capital are identified as key business risks that could impact the bottom line.