Rupa & Company Limited announced its unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025, alongside significant corporate governance changes during its Board meeting held on February 12, 2026.

Financial Performance Overview

The company's standalone financial performance for Q3FY26 demonstrated steady operational results across key metrics:

For the nine-month period ended December 31, 2025, the company reported revenue from operations of ₹81,721.19 lakhs compared to ₹81,452.60 lakhs in the corresponding previous period, reflecting marginal growth of 0.33%. Net profit for the nine-month period stood at ₹3,587.32 lakhs against ₹5,220.07 lakhs in the previous year.

Consolidated Results

The consolidated financial results, including wholly owned subsidiaries, showed similar trends with net profit of ₹1,625.67 lakhs for Q3FY26 and ₹3,627.90 lakhs for the nine-month period. The consolidated revenue from operations reached ₹31,353.02 lakhs for the quarter and ₹81,760.34 lakhs for nine months.

Exceptional Items and Regulatory Impact

The company recognized exceptional expenses of ₹110.10 lakhs during Q3FY26 and ₹267.10 lakhs for the nine-month period. These exceptional items primarily relate to incremental employee benefit obligations arising from the implementation of New Labour Codes that became effective from November 21, 2025. The company reassessed its employee benefit obligations in accordance with revised wage definitions under the new regulatory framework.

Leadership Transition

In a significant corporate development, Mr. Sumit Jaiswal submitted his resignation from the position of Company Secretary and Compliance Officer, effective from close of business hours on February 28, 2026. Jaiswal cited pursuit of new professional opportunities outside the organization as the reason for his departure, confirming no material reasons beyond career advancement.

Updated Corporate Governance Structure

The Board approved revised Key Managerial Personnel authorization effective March 1, 2026:

These personnel are authorized to determine materiality of events and make regulatory disclosures to stock exchanges under SEBI Listing Regulations.

Financial Highlights and Operations

The company's cost structure remained relatively stable with cost of materials consumed at ₹13,491.78 lakhs for Q3FY26. Sub-contracting and job worker expenses constituted ₹6,626.57 lakhs, while employee benefits expense reached ₹1,677.46 lakhs for the quarter. The company maintained its focus on the hosiery and related services segment, which represents its primary business activity.

During the quarter, Rupa & Company redeemed 1,000 units of Commercial Paper with face value of ₹500,000 each, aggregating to ₹50 crores, originally issued on September 11, 2025. The financial results were reviewed by M/s. Singhi & Co., the company's statutory auditors, though technical issues prevented generation of Unique Document Identification Numbers for the limited review reports.

Rupa & Company , a leading Indian innerwear manufacturer, reported a mixed financial performance for the second quarter of fiscal year 2026, with revenue growth accompanied by margin pressure due to an aggressive pricing strategy.

Revenue and Volume Growth

The company recorded an 8% year-on-year revenue growth to INR 320.00 crores in Q2 FY26, primarily driven by a robust 14% volume growth. This growth was largely attributed to strong traction in the economy and mid-premium segments, with the company adopting a calibrated pricing approach to compete effectively in the market.

Margin Pressure and Profitability

Despite the revenue growth, Rupa & Company faced margin pressure during the quarter:

The decline in profitability was primarily due to the company's aggressive pricing strategy aimed at maintaining competitiveness in the market. The gross margin saw a dip of 140 basis points, while advertising spend increased by 60 basis points.

Segment Performance

• Thermalwear: Contributed 13% to quarterly revenues, showing a strong volume growth of 23-24%.
• Exports: Delivered a 28% year-on-year growth, contributing 4% to H1 FY26 revenues.
• Modern Trade and E-commerce: Maintained steady momentum, contributing 8% to H1 revenues.
• Athleisure: Contributed around 8% to Q2 revenues, with a volume and value growth of approximately 13%.

Strategic Initiatives

Rupa & Company is focusing on several initiatives to drive growth and improve profitability:

1. Increased marketing reach and strengthening of the sales and marketing team.
2. Appointment of an e-commerce head and an Exclusive Brand Outlet (EBO) head.
3. Launch on Amazon.com through an aggregator.
4. Introduction of a kiosk for the infant brand, Peek-A-Boo.
5. Strengthening presence in large retail chain format stores like Style Bazaar and City Style.

Outlook

While the company faces intense competition and margin pressure in the short term, management remains optimistic about future growth prospects. Key focus areas include:

• Maintaining volume-led growth in the near term.
• Restoring margin balance through mix optimization and operational efficiency.
• Targeting at least 14-15% growth in the athleisure segment for the fiscal year.
• Aiming for a 20% growth in modern trade and e-commerce channels.
• Expecting expanded contribution from thermalwear in the upcoming winter season.

Rupa & Company's management reaffirmed its commitment to the original guidance of 10% revenue growth by the end of the fiscal year, balancing aggressive pricing with strategic marketing initiatives to drive volume growth and market share.

As the competitive landscape evolves, Rupa & Company continues to adapt its strategies to maintain its market position while working towards improving profitability in the coming quarters.