Rupa & Company Limited , a leading Indian hosiery and knitwear brand, has reported a mixed financial performance for the second quarter of fiscal year 2026 (Q2FY26). The company achieved revenue growth but faced margin pressure due to its aggressive pricing strategy aimed at driving market competitiveness.

Key Financial Highlights

• Revenue Growth: Rupa & Company reported an 8% year-on-year increase in revenue, reaching Rs 320.00 crores in Q2FY26.
• Volume Growth: The company experienced a robust 14% volume growth, primarily driven by strong performance in the Economy and Mid Premium segments.
• EBITDA Margin: The EBITDA margin compressed to 7.00% in Q2FY26, down from 9.60% in the same quarter of the previous year.
• Cash Flow: For the half-year, the company maintained a positive operating cash flow of Rs 23.00 crores.
• Net Cash Position: As of September 2025, Rupa & Company holds a net cash surplus of Rs 18.00 crores.

Segment Performance

The company's growth was primarily driven by strong traction in the Economy and Mid Premium segments. While the Mid Premium segment lagged behind the Economy segment in growth pace, management indicated a focus on reigniting momentum in this category to restore contribution balance and improve margin mix.

Strategic Initiatives

Rupa & Company has implemented an aggressive pricing strategy to drive sales volume and enhance overall market competitiveness. This approach, while successful in boosting volume growth, has put pressure on the company's margins.

Management Commentary

Mr. Vikash Agarwal, Whole Time Director of Rupa & Company, commented on the results: "The quarter witnessed a steady recovery trajectory with encouraging signs across key categories, reflecting our focused execution and strategic agility." He added, "To strengthen our market presence, we pursued an aggressive pricing policy designed to drive sales volume and improve overall competitiveness."

Future Outlook

Looking ahead, Rupa & Company's strategic priorities include:

1. Reigniting growth in the mid-premium and premium segments
2. Strengthening the product mix
3. Enhancing distribution effectiveness to drive profitable growth

Management expressed confidence in sustaining growth momentum and building long-term value for stakeholders, leveraging the company's diversified brand portfolio and deep-rooted market presence.

Conclusion

While Rupa & Company has demonstrated strong volume growth and increased revenue, the pressure on margins highlights the challenges of balancing market share growth with profitability. The company's focus on revitalizing its mid-premium segment and improving its product mix will be crucial in navigating the competitive landscape and achieving sustainable, profitable growth in the coming quarters.

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.