MALLCOM Reports Q2 Net Profit Decline Despite Revenue Growth

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.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.32%	+1.30%	-12.61%	+12.09%	-18.45%	+37.32%

Mallcom (India) Limited , a leading Personal Protective Equipment (PPE) manufacturer, has released its September investor presentation, showcasing robust financial performance and strategic growth initiatives. The company, founded in 1983 by Ajay Mall, has established itself as a key player in the global PPE market.

Financial Highlights

In the first quarter, Mallcom reported impressive financial results:

Operational revenue reached INR 1,224.00 million
EBITDA margins stood at 14.38%
Profit After Tax (PAT) was INR 99.00 million, with a PAT margin of 8.09%

Product Portfolio and Revenue Mix

Mallcom's diverse product range contributes to its revenue as follows:

Product Category	Revenue Contribution
Safety Shoes	45%
Gloves	27%
Garments	24%
Others	4%

The company's geographical revenue mix for Q1 shows a strong global presence:

Region	Revenue Contribution
Asia	46%
Europe	36%
Americas	17%
Australia	1%

Manufacturing Capabilities

Mallcom boasts an impressive manufacturing infrastructure:

13 state-of-the-art facilities across India
Over 1 million sq. ft. of manufacturing space
Workforce of 3,000+ skilled and semi-skilled workers, with 33% being women

The company's annual production capacity includes:

3 million pairs of safety shoes
3.6 million apparel items
150 million face masks
28 million pairs of gloves (various types)

Market Outlook and Growth Strategies

The global PPE market, valued at USD 58.64 billion in 2023, is expected to grow at a CAGR of 7.3% from 2024 to 2032. Mallcom is well-positioned to capitalize on this growth through:

Increasing wallet share with existing clients
Focusing on high-growth industries such as healthcare and construction
Planned CAPEX in Ahmedabad for garment manufacturing and in West Bengal for capacity expansion
Strengthening the 'Mallcom' brand in the Indian subcontinent, Middle East, and Africa
Increasing market share in North America

Innovation and Corporate Social Responsibility

Mallcom emphasizes innovation through its strong R&D team and focuses on meeting quality standards and compliance. The company also demonstrates a commitment to corporate social responsibility, supporting various initiatives including:

Sponsoring athletes for Olympic and Paralympic events
Promoting women's empowerment (33% of the workforce is female)
Supporting education for underprivileged children
Implementing sustainable practices such as biomass heating and solar energy

As Mallcom continues to strengthen its position in the global PPE market, the September investor presentation underscores the company's solid financial performance, diverse product portfolio, and strategic growth initiatives. With a focus on innovation, sustainability, and market expansion, Mallcom appears well-equipped to capitalize on the growing demand for personal protective equipment worldwide.