Rupa & Company Ltd (RUPA) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Ladies and gentlemen, good day and welcome to Q2 and H1 FY '27 earnings conference call of Rupa & Company Limited, hosted by MUFG Intime. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star, then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Pragnya Singh from MUFG Intime. Thank you and over to you, ma'am.
Pragnya Singh (MUFG Intime): Thank you. Good evening, everyone. I welcome you all to the earnings conference call to discuss Q2 and H1 FY '27 results of Rupa & Company Limited. To discuss our results, we have with us from the management, Mr. Vikash Agarwal, the Whole-Time Director, and Mr. Sumit Khowala, Chief Financial Officer. They will take you through the results, and then we will proceed to Q&A session. Before we proceed to the call, a small disclaimer. This conference may contain certain forward-looking statements about the company, which are based on beliefs, opinions, and expectations as on date of this call. The actual results may differ materially. These statements are not guarantee of future performance and involve risks and uncertainties that are difficult to predict. A detailed safe harbor statement is also given on page two of the company's investor presentation. Now, I would like to hand over the call to Mr. Vikash Agarwal. Thank you, and over to you, sir.
Vikash Agarwal (Rupa & Company Limited): Thank you. Good afternoon, ladies and gentlemen. On behalf of Rupa & Company Limited, I extend a very warm welcome to all the participants joining us today for our Q2 and H1 financial year '27 results conference call. We appreciate your continued engagement with the company. The financial
Vikash Agarwal (Rupa & Company Limited): presentation has been uploaded on the stock exchange for your review. During the quarter, the company delivered a steady performance in with a highly competitive market environment, while overall revenue remained broadly flat. Athleisure and thermal wear categories demonstrated encouraging traction during the quarter. We continue to strengthen and scale up these areas with an emphasis of on enhancing its product mix and increasing the contribution of these categories. These initiatives are expected to support sustainable revenue growth and drive improved profitability margins over the medium to long-term. Modern trade contributed 5% to our overall business, providing opportunities to strengthen and diversify our distribution channels. EBITDA for the quarter stood at 26 crores, registering a year-on-year improvement of 15.9% with an EBITDA margin of 8.1%. PAT for the quarter stood at 17 crores, registering a year-on-year improvement of 17.4% with a PAT margin of 5.3%. The improvement in operating profitability was supported by the company's continued focus on cost optimization and operational efficiencies. During the quarter, the board also approved the appointment of Mr. Sunil Bhalchandra Talukdar as an independent director of the company. He retired as group executive president and CFO of Hindalco Industries and currently serves on the board of various companies, including Aditya Birla Fashion and Retail Limited and Vodafone Idea Limited. His appointment further strengthens the company's governance framework and brings additional experience and perspective to the board. We welcome him and look forward to his valuable contribution towards the company's strategic vision and long-term growth. Looking ahead, the company remains focused on driving sustainable growth through expansion of its distribution network, strengthening secondary sales and building a stronger sales leadership and execution team and comprising experienced industry professionals. As we move into the second half of the financial year, we are hopeful to achieve revenue growth of around 10% with EBITDA margin of around 9%. With this, I would like to hand over to the call to our CFO, Mr. Sumit Khowala, to take you through the financial highlights for the quarter and the first half of financial year 27. Thank you.
Sumit Khowala (Rupa & Company Limited): Thank you, sir, and good afternoon, everyone. I will now take you through the key financial highlights for the period. For quarter 2, FY '27, revenue from operations stood at 320.4 crores as against 320.2 crores in quarter 2 FY '26, which remained flat on on a year-on-year basis. Gross margin for the quarter stood at 27.6% as compared to 27.4% in the corresponding quarter last year. EBITDA for the quarter stood at 26 crores as compared to 22.4 crores in the same period last year, registering a growth of 15.9% year-on-year basis. EBITDA margin for the quarter stood at 8.1%, improving by 110 basis points year-on-year. Net profit after tax for the quarter stood at 17 crores as against 14.5 crores in quarter 2 FY '26, registering a growth of 17.4% year-on-year. PAT margin for the quarter stood at 5.3%, improving by 80 basis points year-on-year basis. Now, moving to the first half performance, revenue from operations for H1 FY '27 stood at 522.8 crores as compared to 504.1 crores in H1 FY '26, registering a growth of 3.7% year-on-year basis. Gross margin for H1 FY '27 stood at 31.4% as compared to 31.2% in the corresponding period last year. EBITDA for H1 FY '27 stood at 41.7 crores as compared to 34.6 crores in H1 FY '26, registering a growth of 20.4% percent year-on-year basis. EBITDA margin for H1 FY '27 stood at 8% as compared to 6.9% in H1 FY '26. Net profit after tax for H1 FY '27 stood at 25.3 crores as against 20 crores in H1 FY '26, registering a growth of 25.9% year-on-year basis. PAT margin for H1 FY '27 stood at 4.8% as compared to 4% in the corresponding period last year.
Moderator: One who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Raj Patel from RK Securities. Please proceed.
Raj Patel (RK Securities): Yeah. Hi, am I audible?
Moderator: Yes, sir.
Raj Patel (RK Securities): Yeah. So, thank you for the opportunity. Just a quick question from my end. So, I was keen to know what are the reasons behind the EBITDA growth, whereas we see there was a flat revenue? Can you just throw some color on it?
Sumit Khowala (Rupa & Company Limited): The main reason for improvement in EBITDA is because of the improvement in gross margin. Gross margin is improved by almost 30 basis points. Then, there is an improvement Then, there is saving in advertisement cost. La- Last year corresponding year it was 5.1%. This year it's 4.7%. And other all other expenses contribute contribute to the saving somewhere around 40 basis points. Consequently, the EBITDA is improved by around 110 basis points.
Raj Patel (RK Securities): Got it, sir. That was all from my side. Thank you.
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