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.

Rupa & Company Limited , a prominent player in the Indian textile industry, has received a vote of confidence from CRISIL Ratings Limited. The credit rating agency has reaffirmed the company's strong financial position, maintaining its credit ratings across various financial instruments.

Rating Details

CRISIL has reaffirmed the following ratings for Rupa & Company:

Note: All amounts are in Rs. crore

Implications of the Ratings

The reaffirmation of these ratings reflects CRISIL's continued confidence in Rupa & Company's financial stability and creditworthiness:

• CRISIL AA-/Stable: This long-term rating indicates a high degree of safety regarding timely servicing of financial obligations. It carries very low credit risk.
• CRISIL A1+: The highest short-term rating, suggesting a very strong degree of safety concerning timely payment of financial commitments.

Company's Disclosure

In compliance with regulatory requirements, Rupa & Company has promptly disclosed this information to the stock exchanges. Sumit Jaiswal, the Company Secretary & Compliance Officer, confirmed the rating action through an official communication to the National Stock Exchange of India Limited and BSE Limited.

The reaffirmation of these strong credit ratings is likely to be viewed positively by investors and stakeholders, as it underscores the company's robust financial health and its ability to meet financial obligations. This could potentially have a favorable impact on Rupa & Company's market perception and its ability to access capital markets efficiently.

Investors and market participants are advised to consider this information as part of their overall assessment of the company's financial position and future prospects.