Page Industries shares drop 4.7% on mixed Q1 2026 earnings

Page Industries Ltd. shares fell 4.7% on Tuesday after the company reported mixed financial results for the first quarter of fiscal 2026, with revenue and profit missing analyst estimates amid margin compression in its domestic operations.

The Bengaluru-based company, which owns the Jockey and Speedo brands in India, posted a consolidated net profit of ₹1.14 billion ($13.7 million) for the quarter ended June 30, down 12% year-on-year. Revenue declined 3% to ₹10.2 billion, missing the ₹10.8 billion consensus estimate compiled by Refinitiv. Operating margin contracted to 14.2% from 16.1% a year earlier, reflecting higher raw material costs and pricing pressures.

Domestic sales, which account for nearly 90% of total revenue, fell 5% to ₹9.1 billion as discretionary spending remained subdued in a high-inflation environment. International revenue rose 14% to ₹1.1 billion, driven by exports to the Middle East and Southeast Asia, though this growth was insufficient to offset the domestic slowdown.

Management noted that while demand for premium products remained resilient, volume growth was constrained by elevated retail prices and competitive discounting in the market. The company also highlighted logistical challenges in certain regions, further impacting margins.

Page Industries maintained its full-year guidance for revenue growth of 5-7% and a net profit margin of 12-14%, citing expectations of a gradual recovery in discretionary spending. Analysts, however, remain cautious, with several downgrading the stock on concerns over persistent margin pressures and weak domestic demand.

The shares, which had already underperformed the broader market in recent months, extended losses following the earnings release, closing at ₹4,250 on the National Stock Exchange, down from ₹4,450 at Monday’s close.