Meenakshi (India) Limited reported a 153% YoY increase in Profit After Tax (PAT) for the first quarter of fiscal year 2027 (Q1FY27), reaching ₹7 crore. The apparel manufacturer saw its bottom line expand significantly despite a slight decline in top-line revenue, driven by improved operating margins and higher other income.

Revenue from operations stood at ₹32 crore, marking a 3.4% YoY decrease from ₹33 crore in the corresponding quarter last year. However, EBITDA turned positive at ₹1 crore, compared to a loss of ₹0.2 crore in Q1FY26. This shift resulted in an EBITDA margin expansion of 388 basis points (bps) to 3.4%, up from negative 0.5% in the year-ago period.

Financial Performance Highlights

The company’s management commentary highlighted that FY26 was impacted by tariff-led industry disruption, leading the firm to prioritise customer retention over near-term margins. Early trends in FY27 suggest these corrective measures are gaining traction, with the core business returning to positive operating territory.

Strategic Expansion and Capacity Growth

Meenakshi India is pursuing a three-pronged growth strategy focused on capacity expansion, widening its product portfolio, and expanding its manufacturing footprint. The company plans to double its annual garment capacity from 18 lakh pieces in FY26 to 37.5 lakh pieces by FY30. This expansion is supported by a planned capital expenditure of ₹40-50 crore, which is internally funded through approximately ₹80 crore in available cash and bank balances, requiring no equity or debt.

Key strategic initiatives include:

• Capacity Ramp-up: Utilisation is targeted to rise from 65% in FY26 to 80% by FY30.
• Geographic Diversification: A Memorandum of Understanding (MoU) has been signed with a contract manufacturer in Sri Lanka to mitigate tariff risks. Locations in Nepal, Odisha, and West Bengal are under evaluation.
• Product Portfolio: The company aims to expand into women’s bottomwear, kidswear, and athleisure by leveraging existing machinery and operator skills without requiring new plants.

What the Numbers Show

A critical observation from the Q1FY27 results is the divergence between operational recovery and profit drivers. While EBITDA margins recovered significantly to 3.4%, the substantial jump in PAT was heavily supported by a 76.6% YoY increase in other income, which rose to ₹7 crore from ₹4 crore. Other income constituted nearly 92% of the total PBT of ₹7.63 crore, indicating that non-operating income played a dominant role in the quarter's profitability surge alongside the return to positive EBITDA.

The company maintains a debt-free status with a Debt/Equity ratio of 0.00x as of FY26, reflecting strong balance sheet health. The asset turnover ratio remains robust at 15.46x, showcasing efficient utilisation of assets even amidst margin pressures.

Meenakshi (India) Limited has notified shareholders holding physical certificates that equity shares arising from its upcoming 1:2 split will be issued exclusively in dematerialized form. The company fixed Friday, October 30, 2026 as the record date for the corporate action.

Under Regulation 39(2A) of SEBI (LODR) Regulations, 2015, sub-divided shares for physical holders will be credited to a separate Demat Suspense Account. To avoid this indirect route, the company requested shareholders to convert their physical holdings into demat mode before the record date, enabling direct credit to their accounts.

Split mechanics and demat requirements

The approved plan subdivides every one existing equity share with a face value of ₹10 into two equity shares with a face value of ₹5 each. For shareholders holding shares in physical form, the corresponding physical share certificates will stand cancelled and rendered void upon issuance of the new demat shares.

Shareholders must claim these shares from the company or its Registrar and Transfer Agent, Cameo Corporate Services Limited, by submitting requisite documents. Alternatively, direct demat conversion prior to October 30, 2026 ensures seamless transfer.

Background and rationale

The sub-division follows the company’s direct listing on the BSE Main Board, effective July 22, 2026, with trading commencing on July 28, 2026. The stock opened at ₹281.99. Management stated that the split aims to enhance liquidity and affordability, encouraging retail participation and widening the shareholder base.

Mr. Ashutosh Goenka, Chairman & Managing Director, noted that the step is aimed at making shares more accessible to a wider set of investors. The members approved the sub-division during the Annual General Meeting held on September 28, 2026.

Regulatory compliance and KYC updates

The company dispatched communications to physical shareholders on October 3, 2026, detailing the demat-only issuance policy. This intimation was filed with BSE Limited and The Calcutta Stock Exchange Limited under Regulation 30 of SEBI (LODR) Regulations, 2015.

Additionally, per SEBI Circular dated June 23, 2025, shareholders holding securities in physical form are required to mandatorily update their PAN, contact details, bank account details, and specimen signature. Forms for registering KYC details are available on the company’s website.