Rupa & Company Limited, a prominent player in the Indian textile industry, has successfully raised Rs. 50 crore through the issuance of commercial paper (CP). The company made this announcement on September 11, 2025, marking a strategic move to optimize its working capital management.

Key Details of the Commercial Paper Issuance

The commercial paper was issued to Kotak Mahindra Bank, with Yes Bank Limited serving as the issuing and paying agent (IPA).

Strategic Financial Management

Rupa & Company's decision to issue commercial paper is part of its broader financial strategy. The company plans to utilize the proceeds to meet its working capital requirements, primarily by repaying higher-cost borrowings. This move is expected to enhance the company's financial efficiency and reduce its overall interest burden.

Market Impact and Regulatory Compliance

The issuance of commercial paper by Rupa & Company demonstrates the company's ability to access short-term financing through the debt market. By opting for this financial instrument, the company showcases its creditworthiness and financial stability.

In compliance with regulatory requirements, Rupa & Company has duly informed the National Stock Exchange of India Limited and BSE Limited about this development, adhering to Regulation 30 of the SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015.

This strategic financial move by Rupa & Company Limited is likely to be closely watched by investors and market analysts, as it reflects the company's proactive approach to financial management and its efforts to optimize its capital structure.

Rupa & Company Limited, a leading Indian knitwear brand, has announced its financial results for the first quarter of fiscal year 2026, revealing a strategic focus on premium segments and e-commerce expansion amid challenging market conditions.

Financial Performance

For Q1 FY26, Rupa & Company reported consolidated revenue from operations of Rs. 183.90 crore, marking a 13% year-on-year decline from Rs. 210.30 crore in Q1 FY25. The company's EBITDA stood at Rs. 12.20 crore, down from Rs. 18.00 crore in the same quarter last year, with the EBITDA margin contracting to 6.6% from 8.6%. Net profit for the quarter was Rs. 5.50 crore, compared to Rs. 10.50 crore in Q1 FY25.

Growth Strategy and Segment Performance

Despite the overall revenue decline, Rupa & Company's athleisure segment demonstrated robust growth, recording an impressive 32% increase year-on-year. This performance underscores the company's strategic shift towards premium and athleisure products.

Key highlights:

• Athleisure segment: 32% YoY growth
• Export business: 10% growth
• Modern Trade: Maintained 8% contribution to overall revenue

Market Challenges and Strategic Response

The company acknowledged the complex industry landscape, characterized by intense pricing competition. Rupa & Company's decision to maintain prices impacted topline growth but aligns with its long-term strategy of focusing on premium segments and brand value.

Financial Position and Cash Flow

• Net cash and cash equivalents, including investments: Rs. 53.00 crore (as of June 30, 2025)
• Operational cash flow generated: Rs. 33.00 crore

Management Commentary

Vikash Agarwal, Whole Time Director of Rupa & Company, commented on the results:

"Despite these headwinds, our Athleisure segment continued its robust momentum, recording an impressive 32% growth in the quarter, reaffirming the strength of our brand positioning and the relevance of our diversified product portfolio."

He further added:

"We remain confident in our ability to navigate the current market environment, supported by our resilient business model, diversified product mix, and deep distribution network."

Future Outlook

Rupa & Company's strategic focus includes:

1. Accelerating growth in high-potential segments
2. Enhancing operational efficiencies
3. Continuing to deliver differentiated products
4. Expanding into premium and athleisure segments
5. Strengthening e-commerce operations
6. Increasing exports

The company aims to enhance margins and gain market share through cost management initiatives and leveraging its brand value. Continued investments in high-potential channels and product innovation are expected to drive future growth.

As Rupa & Company navigates through the current challenging environment, its strategic focus on premium segments, e-commerce, and exports, coupled with its strong financial position, positions the company to capitalize on evolving consumer preferences and market opportunities.