RUPA - Rupa & Co

📊 NSE: RUPA 🏢 Textiles - Products 📅 Last Updated: 12/14/2025 12:31

💰 Financial Performance

Revenue Growth by Segment

In Q2 FY26, revenue grew 8% YoY to INR 320 Cr, driven by a 14% volume growth in the economy and mid-premium segments. For FY 24-25, consolidated turnover reached INR 1,239.32 Cr, a growth of 1.87% over the previous year.

Geographic Revenue Split

The company maintains a PAN India presence. While specific regional percentages are not disclosed, management is actively expanding its reach in export markets and modern trade channels to diversify its geographic footprint.

Profitability Margins

Consolidated Net Profit for FY 24-25 was INR 83.29 Cr, up from INR 69.78 Cr in FY 23-24. However, Q2 FY26 PAT margin declined to 4.5%, down 170 basis points YoY, as the company prioritized volume growth over immediate margin retention.

EBITDA Margin

EBITDA margin for Q2 FY26 stood at 7%, representing a 260 basis point decline YoY. EBITDA fell 21% to INR 22 Cr from INR 29 Cr due to intense competitive activity and a calibrated pricing strategy aimed at capturing market share.

Capital Expenditure

The company has no major debt-funded capital expenditure plans. This conservative approach is intended to maintain a robust capital structure and healthy debt protection metrics over the medium term.

Credit Rating & Borrowing

CRISIL maintains a 'Stable' outlook. The company has a healthy financial risk profile with gearing less than 0.3 times as of March 31, 2024, and an interest coverage ratio of 2.1 times.

⚙️ Operational Drivers

Raw Materials

The primary raw materials include cotton yarn and fabric for knitted innerwear and thermal wear. While specific cost percentages per material are not disclosed, they constitute the bulk of manufacturing expenses for hosiery products.

Import Sources

Not specifically disclosed in the documents, though the company operates primarily out of Kolkata, India, suggesting significant domestic sourcing for its knitted operations.

Capacity Expansion

Current capacity is not explicitly stated in MT/units, but the company is expanding its reach through modern trade and export segments to support its 14% volume growth strategy.

Raw Material Costs

Raw material costs are managed through a calibrated pricing approach. In Q2 FY26, the company accepted lower margins (EBITDA down 21%) to offset competitive pricing pressures in the raw material-intensive hosiery segment.

Manufacturing Efficiency

The company focuses on value addition and quality control. Volume growth of 14% in Q2 FY26 indicates high capacity utilization driven by demand in economy and mid-premium categories.

Logistics & Distribution

The company utilizes an extensive distribution network to support its PAN India presence, which is a key driver for its business risk profile and market position.

📈 Strategic Growth

Expected Growth Rate

12%

Growth Strategy

Growth will be achieved through a 12% CAGR industry projection by 2027, focusing on volume-led growth, expansion into new geographies (exports), and leveraging license rights for premium brands like FCUK and Fruit of the Loom to increase market penetration.

Products & Services

Knitted innerwear, casual wear, and thermal wear for men, women, and children.

Brand Portfolio

Rupa, Euro, Imoogi, Oban, Rupa Frontline, Softline, FCUK (license), and Fruit of the Loom (license).

New Products/Services

The company is focusing on purpose-specific innerwear (sporty, casual, fashionable) and premium brand licenses (FCUK, Fruit of the Loom) to drive higher value contributions.

Market Expansion

Targeting expansion in modern trade, e-commerce, and export markets to compensate for domestic competitive intensity.

Market Share & Ranking

The company holds a strong market position in the domestic hosiery industry with over five decades of promoter experience.

Strategic Alliances

License agreements with French Connection Group PLC (FCUK) and Fruit of the Loom.

🌍 External Factors

Industry Trends

The industry is shifting toward organized retail and branded products, with the innerwear market expected to grow from INR 14,500 Cr in 2015 to INR 56,364 Cr by 2027E, a 12% CAGR.

Competitive Landscape

The domestic hosiery industry is 'intensely competitive,' featuring both organized players and unorganized segments, requiring constant marketing investment.

Competitive Moat

The moat is built on 50+ years of promoter experience, strong brand recall across 18+ sub-brands, and an extensive distribution network. This is sustainable due to the high entry barriers in establishing a PAN India brand and distribution chain.

Macro Economic Sensitivity

Demand is sensitive to increasing income levels and high spending power, which are listed as key growth triggers for the innerwear market.

Consumer Behavior

Shift toward purpose-specific innerwear (sporty, casual, fashionable) and increasing penetration of electronic media are driving consumers toward branded products.

Geopolitical Risks

The company has a subsidiary, Rupa Bangladesh Private Limited, which exposes it to regional geopolitical and economic stability in Bangladesh.

⚖️ Regulatory & Governance

Industry Regulations

The company complies with the Companies Act, 2013 and SEBI (LODR) Regulations. Secretarial audits ensure adherence to good corporate practices and statutory provisions.

Legal Contingencies

The company has a Vigil Mechanism/Whistle-blower policy to report unethical behavior or fraud. No specific pending court case values were disclosed in the provided text.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the ability to restore margin balance (currently at 7% EBITDA) while maintaining volume growth in a hyper-competitive market.