Rupa & Company Q2 FY27 results: net profit up 17.9% to ₹17.10 crore, revenue up 0.1%

How did Rupa & Company perform in Q2 FY27?

Rupa & Company reported consolidated revenue of ₹320.42 crore for Q2 FY27, compared with ₹320.16 crore in Q2 FY26 and ₹202.43 crore in Q1 FY27. The company reported EBITDA of ₹26.01 crore at an 8.1% margin, versus ₹22.33 crore at 7.0% a year ago and ₹15.75 crore at 7.8% in the previous quarter. Net profit was ₹17.10 crore and basic EPS was ₹2.15.

Against the year-ago quarter, EBITDA rose 16.5%, profit before tax rose 12.1% to ₹22.02 crore, and net profit rose 17.9%. Basic EPS increased 18.1% from ₹1.82. Against Q1 FY27, EBITDA rose 65.1%, profit before tax rose 80.0%, net profit rose 107.0%, and basic EPS rose 106.7% from ₹1.04.

On a standalone basis, Q2 FY27 revenue was ₹320.19 crore and profit after tax was ₹16.96 crore, compared with ₹14.39 crore in the year-ago quarter. The consolidated figures used above include the company’s subsidiaries and differ from the standalone results presented in the filing.

What changed in Rupa & Company's costs and profit?

Total expenses fell 0.6% from ₹306.21 crore in Q2 FY26 to ₹304.29 crore in Q2 FY27, despite cost of materials consumed rising 43.8% by ₹60.26 crore to ₹197.84 crore. Other expenses increased 6.2% by ₹7.91 crore to ₹136.20 crore, while employee cost rose 15.8% by ₹2.63 crore to ₹19.27 crore and finance costs increased 30.0% by ₹1.39 crore to ₹6.03 crore.

Depreciation increased 3.2% by ₹0.12 crore to ₹3.85 crore. Other income rose 3.3% by ₹0.19 crore to ₹5.88 crore, and tax declined 4.3% by ₹0.22 crore to ₹4.92 crore. There was no exceptional item in either Q2 FY27 or Q2 FY26.

The filing does not state why total expenses declined while cost of materials and other expenses increased. Management attributed the improvement in operating profitability to cost optimisation, operational efficiencies and disciplined expense management.

How did the first half of FY27 go?

For H1 FY27, Rupa & Company reported consolidated revenue of ₹522.85 crore, up 3.7% from ₹504.06 crore in H1 FY26. Total income increased 3.7% to ₹534.12 crore from ₹515.09 crore, while profit before tax rose 26.0% to ₹34.25 crore.

Profit after tax for the first half increased 26.7% to ₹25.37 crore from ₹20.02 crore, and basic EPS rose 26.6% to ₹3.19 from ₹2.52. H1 FY26 included an exceptional item of ₹1.6 crore, while H1 FY27 had no exceptional item.

What do the balance sheet and cash flow show?

Total assets increased to ₹1,693.39 crore at 30 September 2026 from ₹1,614.41 crore at 31 March 2026. Total equity was ₹1,067.60 crore, compared with ₹1,066.11 crore, while borrowings rose to ₹328.75 crore from ₹247.69 crore. Cash and cash equivalents fell to ₹3.52 crore from ₹4.51 crore.

Inventories increased to ₹619.25 crore from ₹445.92 crore, while trade receivables declined to ₹484.67 crore from ₹578.00 crore. Trade payables rose to ₹175.22 crore from ₹169.54 crore. H1 FY27 operating cash flow was negative ₹53.48 crore, compared with positive ₹23.06 crore in H1 FY26; investing cash flow was positive ₹7.34 crore and financing cash flow was positive ₹45.02 crore.

How has Rupa & Company done over the last 8 quarters?

Revenue and profit followed a seasonal pattern in the reported quarters, reaching their highest levels in Q4 FY26 at ₹441.50 crore and ₹36.21 crore. They fell to their lowest levels in Q1 FY26 at ₹183.90 crore and ₹5.52 crore, before recovering through the subsequent quarters.

In Q2 FY27, revenue of ₹320.42 crore was slightly above Q2 FY26’s ₹320.16 crore, while net profit increased to ₹17.10 crore from ₹14.50 crore. EBITDA margin was 8.1%, above 7.0% a year ago but below the 12.5% peak in Q4 FY26. Revenue and profit each rose year on year in each of the last three quarters.

What else did the company announce?

The board approved the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026 on 2 November 2026. The same-day filing did not announce a dividend or a fund raise.

The board also approved the appointment of Sunirmal Talukdar as an Additional Director in the non-executive, independent category, effective 2 November 2026, for five consecutive years subject to shareholder approval. The filing said that Talukdar is a Chartered Accountant with over three decades of professional experience and is not related to any director or promoter of the company.

What did Rupa & Company's management say?

Management said Q2 FY27 revenue was ₹320.4 crore versus ₹320.2 crore in the corresponding quarter of the previous year, despite a challenging and highly competitive market environment. It reported growth in thermal and athleisure wear, with exports contributing approximately 4% of revenue and modern trade approximately 5%.

Whole Time Director Vikash Agarwal said the improvement in operating profitability was supported by cost optimisation, operational efficiencies and disciplined expense management. For H2 FY27, management said its focus was on improving product mix and driving operational efficiencies, while it remained optimistic about pursuing sustainable, profitable growth.

Management’s stated priorities include doubling the store count in regional and value large-format stores, with a focus on Southern India, and onboarding Myntra, Nykaa and AJIO. It also said rupabrands.com was in the final stage of launch as a direct-to-consumer home for all Rupa brands, alongside expansion on quick-commerce platforms and global marketplaces.

Management also identified cost optimisation, operational efficiency, premium innerwear and women’s portfolio development, modern-trade and export expansion, and e-commerce development as priorities. It described the market as challenging and highly competitive, while noting the working-capital build from higher inventories and short-term borrowings.

How did Rupa & Company shares react?

After the filing appeared, the stock rose 0.8% after five minutes, 1.5% after 15 minutes and 1.2% after 30 minutes. It closed the reaction day 1.1% below its previous close, while the Garments & Apparels industry median rose 0.6%, leaving the stock 1.8 percentage points behind the sector on the reaction day.

By the next day’s close, the stock was up 1.0% from its pre-results close, against a 2.2% median rise for the industry, a lag of 1.2 percentage points. Earlier reaction-day moves included declines of 3.9% on 10 August 2026 and 9.2% on 12 August 2025, as well as gains of 3.2% on 26 May 2026 and 3.3% on 21 May 2025.

How did other Garments & Apparels companies do?

Ten other Garments & Apparels companies had filed for the quarter by 4 November 2026, with a median revenue growth of 31.7%. Nine grew faster than Rupa & Company, while one grew slower; six of the eight companies with comparable profit data reported higher profit.