Mallcom India Q2FY26: Revenue Grows 8% to INR 139 Crores, EBITDA Margin Contracts to 7.1%

Mallcom India Limited , a leading player in the Personal Protective Equipment (PPE) industry, reported its financial results for the second quarter of fiscal year 2026, showcasing revenue growth amidst margin pressures.

Financial Highlights

Revenue grew by 8% year-on-year to INR 139.00 crores in Q2FY26
EBITDA margin contracted by 513 basis points to 7.10%
Net profit for the quarter stood at INR 4.00 crores, with a PAT margin of 2.66%

Half-Year Performance

For the first half of FY26, Mallcom India reported:

Operating revenue of INR 262.00 crores, a 13% year-on-year increase
EBITDA of INR 28.00 crores, a 9% year-on-year decline
EBITDA margin contraction of 250 basis points to 10.50%
Net profit of INR 14.00 crores, resulting in a PAT margin of 5.19%

Operational Updates

The company's new Protech facility at Sanand, Gujarat commenced commercial production in September 2025, with an investment of INR 100.00 crores
Mallcom plans to scale up capacity at the Sanand facility in a phased manner, with an additional capex of up to INR 10.00 crores earmarked for importing new dipping line and knitting machines
The facility is now manufacturing PU-coated gloves, related gloves, helmets, and bump caps
The newly established Industrial Safety Shoes facility at Chandipur, West Bengal, with a capex of INR 25.00 crores, is also fully operational

Management Commentary

Rohit Mall, Associate Vice President of Mallcom India, stated, "Our Protech facility at Sanand, Gujarat has commenced commercial production and the current setup is now fully operational. This is an important strategic development for us as it positions the company as an import substitute provider while also enabling us to serve certified high-quality products to domestic users and to tap the overseas demand."

Margin Pressure and Recovery Plans

The company attributed the sharp decline in EBITDA margin to:

Higher import costs
Currency headwinds, with both the dollar and euro appreciating significantly
Increased freight costs

Management expects margins to recover to 13-14% levels by Q4FY26. The company is in the process of renegotiating with vendors and customers to mitigate these short-term pressures.

Future Outlook

Mallcom India aims to maintain its target of 20% growth for the full year, despite challenges in the export market
The company is optimistic about potential improvements in trade conditions, including possible resolution of tariff issues with the U.S. and ongoing Free Trade Agreement negotiations
Management is focusing on expanding its presence in emerging markets and diversifying its product portfolio to drive growth

Conclusion

While Mallcom India has shown resilience with revenue growth in Q2FY26, the company faces challenges in maintaining its profit margins. The management's focus on operational efficiency, strategic investments in new facilities, and efforts to recover margins indicate a proactive approach to navigating the current market dynamics. Investors will be watching closely to see if the company can achieve its targeted margin recovery by the end of the fiscal year.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-3.31%	-9.89%	-14.43%	+5.60%	-15.31%	+35.52%

Mallcom (India) Ltd , a leading manufacturer of personal protective equipment (PPE), has reported a significant decline in its Q2 net profit despite an increase in revenue. The company's financial results for the quarter ending September 30 reveal a complex picture of growth and challenges.

Financial Highlights

Metric	Q2 FY26	Q2 FY25	YoY Change
Revenue	1393.00	1291.00	+7.9%
EBITDA	99.00	158.00	-37.3%
EBITDA Margin	7.11%	12.24%	-513 bps
Net Profit	37.00	101.00	-63.4%
PAT Margin	2.66%	7.82%	-516 bps

Mallcom's revenue for Q2 FY26 increased to ₹1,393.00 crore, up 7.9% from ₹1,291.00 crore in the same quarter last year. However, this top-line growth was overshadowed by a sharp decline in profitability. The company's net profit fell by 63.4% year-over-year to ₹37.00 crore, compared to ₹101.00 crore in Q2 FY25.

Margin Pressure

The company experienced significant margin pressure during the quarter. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) decreased by 37.3% to ₹99.00 crore, with the EBITDA margin contracting by 513 basis points to 7.11%. This decline in operational efficiency suggests increased costs or pricing pressures in the market.

Operational Challenges

The decrease in EBITDA margins was primarily attributed to higher costs of goods sold, indicating potential supply chain or raw material cost challenges. This could be a result of global inflationary pressures or specific industry-related factors affecting the PPE sector.

Expansion and Recognition

Despite the profit decline, Mallcom continues to focus on expansion and product diversification:

The Protec work wear unit in Sanand, Gujarat, has commenced commercial production, with a total investment of ₹100.00 crore.
The company has started manufacturing PU Coated Gloves, aiming to substitute imports and cater to both domestic and international markets.
A new industrial safety shoes manufacturing unit in Chandipur, West Bengal, involving a ₹25.00 crore investment, is now fully operational.

Mallcom's efforts in export have been recognized, with the company receiving the CLE National Export Excellence Award 2024-25 (2nd Place) in the Industrial Leather Gloves category.

Looking Ahead

While the company faces short-term profitability challenges, its continued investment in new production facilities and product lines suggests a focus on long-term growth and market positioning. The management's ability to navigate cost pressures and leverage new production capabilities will be crucial for Mallcom's future performance.

Investors and market observers will be watching closely to see how Mallcom addresses its margin challenges while capitalizing on its expanded production capabilities in the coming quarters.