PAGEIND

Struggles with Muted Growth Despite Margin Gains

, the maker of Jockey and Speedo in India, continues to face muted growth and investor skepticism. Despite margin expansion from stable raw material costs and sourcing efficiencies, weak demand, stiff competition, and sluggish volume growth have weighed on performance. The stock has declined 18% in 2025, hitting a new 52-week low. Revenue grew just 3.6% YoY, with volume up 2.5% and realisation up 1%. Channel de-stocking kept growth volatile, marking the second consecutive quarter of low-single-digit volume expansion. Demand recovery expected in Q2 did not materialize, reflecting weak consumer sentiment and competitive intensity. Gross margin expanded 345 bps YoY, aided by stable input prices and efficient sourcing. However, EBITDA margin fell to 21.7%, impacted by higher staff costs and elevated marketing spends. While still above the guided 19–21% range, margins face downside risk if revenue growth remains subdued. - Premium Products Outperform, Entry-Level Weakness Persists Premium launches, including bonded technology bras and men’s innerwear, received encouraging initial response. JKY Groove athleisure and seasonal collections performed well. However, weak sentiment in entry-level products is limiting new customer acquisition, highlighting a bifurcation in demand. Page expects better performance in H2FY26, supported by festive demand, winter launches, and premium product traction. The company is focusing on calibrated distribution expansion, operational efficiencies, and product innovation to reignite growth momentum. Despite muted fundamentals, Page trades at a rich FY27 PE multiple of 50x. Historical performance has been modest, with revenue and PAT growth in low double digits between FY19–25. Analysts caution that FY26 may remain weak, making the premium valuation harder to justify without a clear growth revival.