Rupa & Company Limited (NSE: RUPA) Q3 2026 Earnings Call dated Feb. 13, 2026
Corporate Participants:
Vikash Agarwal — Whole-time Director
Sumit Khowala — Chief Financial Officer
Omkar Bhagre. — Director
Analysts:
Riddhi Vora — Analyst
Preeti Agarwal — Analyst
Jay Jain — Analyst
Shubhankar Gupta — Analyst
Rajiv Jain — Analyst
GM Nick — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Rupa Co. Ltd. Q3 and 9 months FY26 earnings conference call. As a reminder, all participants lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call please signal an operator by pressing Star then zero on your touch tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Omkar Bhagre. Thank you. And over to you.
Omkar Bhagre. — Director
Yes, thank you. Good afternoon everyone. I welcome you all to the earnings conference call to discuss Q3 and 9 month FY26 results of Rupa Co. Ltd. On behalf of Rupand Co. Ltd. I’m delighted to welcome you all to this call. Thank you for taking the time out to discuss our latest financial results and performance. To discuss our results we have with us from the management Mr. Vikas Agarwal the whole time director and Mr. Sumit Khowala the Chief Financial Officer. They will take you through their results and then we will proceed to Q and A session.
Before we proceed to the call, a small disclaimer. This conference may contain certain forward looking statements about the company which are based on the beliefs, opinions and expectations as on date of this call. The actual results may differ materially. These statements are not guarantee of future performance and involve risks and uncertainties that are difficult to predict. A detailed safe harbor statement is also given on page two of the company’s investor presentation. Now I would like to hand the call over to Mr. Vikas Agarwal. Thank you. And over to you sir.
Vikash Agarwal — Whole-time Director
Thank you. Good afternoon ladies and gentlemen. On behalf of Rupa Co. Ltd. I extend a very warm welcome to all the participants joining us today for our Q3 and 9 month financial year results. Year 26 results conference call. We appreciate your continued agreement and I trust you have reviewed the financial results and best presentation available on the stock exchanges. Our company delivered a steady performance this quarter with consistent consumption trend across our key markets. Revenue was driven by a favorable product mix with the mid premium segment leading volume growth. However, pricing conditions are increasingly competitive across segments with high 10 trade scheme exerting above normal pressure on net realization.
Consequently, margins reflected the impact of these elevated competitive intensity during the quarter. On an overall basis A volume mix delivered 3% growth during the quarter offset by a 3.8 adverse pricing impact. Revenues for the quarter stood at INR 313.5 crores marginally down by 0.9% year on year Revenue for nine months stood at INR 817.6 crores versus 823.8 crores year on year. Fat margin for the quarter and nine months stood at 5.2% and 4.4% respectively. Versailles 7.5% and 6.4% respectively. Year on year exports continue to demonstrate healthy traction with year on year growth of 28% contributing 4% to revenues.
Modern trade including E commerce contributed 6% to revenues during the nine months reflecting the calibrated channel expansion In a competitive landscape we remain disciplined on working capital management our company generated operating cash flow of INR 49 crore during the nine months. As of 31st December 2025, cash surplus stood at INR 41 crore reflecting our prudent financial management and strong liquidity position. While the company continues to prioritize volume led growth in near term, we believe this sets a resilient base for margin recovery as pricing pressure moderates anchored by a diversified brand portfolio and continued emphasis on operational efficiencies.
With this I would now like to hand over to our CFO Sumit Koala to take you through the financial highlights of the quarter and nine months.
Sumit Khowala — Chief Financial Officer
Thank you sir and good afternoon to everyone. Thank you for joining us on the quarter three and nine month FY26 earnings call. I will now take you through the key financial highlights for the period for quarter three. FY26 revenue from operations stood at 303.5 crores registering a degrowth of 0.9% year on year basis. EBITDA for the quarter stood at 25.7 crores as compared to 38 crores same period last year resisting a degrowth of around 32% on yoy basis. The EBITDA margin for the quarter stood at 8.2% down by 80 basis point year earlier. The net profit for the period is 16.2 crores as against 23.8 crores in quarter 3 FY25 which degrew by 32% year on year.
The packed margin for the quarter stood at 5.2% down by 230 basis points year on year. Now coming to the nine months performance, revenue from operations stood at 817.6 crores registering a marginal degrowth of around 0.8%. EBITDA for the period stood at 60.3 crores as compared to 84.5 crores. Same period last year registering a degrowth of 29% on year on year basis. EBITDA margin for the period stood at 7.4% down by 299 basis point. The net profit for the period is 36.2 crores as against 52.7 crores in 9 month FY20 which grew by 31% year on year.
We remain committed to maintaining financial prudence and cost control while continuing to invest in brand and growth opportunities. Our focus remains on improving profitability through better product mix, efficient channel management and disciplined working capital practice. With this I conclude my remarks and open the floor for question and answer. Thank you.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on the touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Riddhi Vora from SAS capital. Please go ahead. Hello.
Riddhi Vora
Am I audible?
Omkar Bhagre.
Yes, you are. Yeah.
Riddhi Vora
So industry is facing the continuous pricing was among the players. The margins are getting squeezed post Covid. What do you think when the same will be stabilized?
Vikash Agarwal
I mean short term we don’t see. But once the export demand picks up we feel once the yard prices get more firmer, I think the trends will change which might take another few quarters.
Riddhi Vora
Okay. Okay. And why are we seeing sharp decline in margin?
Sumit Khowala
Yeah. The main reason for decline in margin is because of the intense price competition going on the market. And our company adopt adopted a policy of aggressive pricing strategies which impacted our realizations resulting in lower growth as well as operating margins.
Riddhi Vora
Okay. Okay.
Omkar Bhagre.
Thank you, sir. Thank you very much. A reminder to all the participants that you may press Star and one to ask a question. The next question comes from the line of Preeti Agarwal from SK associates. Please go ahead.
Preeti Agarwal
Yeah, thank you so much for the opportunity. I wanted to know that what are your capex plans along with marketing expenditures for FY26.
Sumit Khowala
There are no major capex plan. There will be routing capex of 12 to 15 crores. And for advertisement our yearly budget Budget is around 6 to 7.
Preeti Agarwal
Understood, sir. Thank you so much.
Omkar Bhagre.
Thank you. A reminder to all the participants that you may press star at 1 to ask a question. The next question comes from the line of J from Star investment. Please go ahead.
Jay Jain
Hi. So sir, what is your working capital in terms of days for nine months?
Sumit Khowala
In FY26 the working capital days for. Nine months is around 230 days.
Jay Jain
Okay, sir, that’s all from you thank you.
Omkar Bhagre.
Thank you. I reminded to all the participants that you may press Star and one to ask a question. The next question comes from the line of Shubhankar Gupta from Equity Capital. Please go ahead.
Shubhankar Gupta
Hi sir, two questions from my side. First is I just wanted to have a deeper glimpse of what is leading to this pricing pressure which we have been talking about for the last three, four quarters. And in line with that, what are the trade discounts which we’ve offered for the 3 months and the 9 months period for FY26?
Sumit Khowala
Basically pricing pressure in terms of providing aggressive schemes to our dealers in order to be competitive in the market and in order to match the price of the peers we have to not only we have to pass team but also we have to extend the credit period sometime. And the total discount or schemes would be around 12%.
Vikash Agarwal
12%.
Shubhankar Gupta
So it’s, it’s, it’s I think gone from around 8, 9 to 12% now. So ideally how we are thinking about this is that ideally it should have led to some sales growth as well. Right? That is the whole purpose of giving heavy trade discounts. But even that is not happening. So why in that view is not happening according to you?
Sumit Khowala
We have rationalized this price since last quarter. So we are expecting that the, the sales volume will get up within this quarter or quarters to come. It would take time because the price has been rationalized recently.
Shubhankar Gupta
Okay, okay. And so second point is since this industry, as you said that rightly said that has been on you know, aggressive pricing which is now translating to low growth across. Right. So when and why should that reverse? And sort of first like exports is a very small part for us as you mentioned. So like what exact exports do you think will lead to a growth for us in the coming years? Not quarters but yours.
Vikash Agarwal
So we’re focusing on other channels like E commerce, export, modern trade. All these are new channels which we need to focus on and the new areas we are getting into and new ranges like at seizure and activewear. So those are the ranges and logged into women’s wear also. So women’s wear also we are launching lot of new products which are very aggressive on price. So recent trend we are seeing like a price market is becoming very price sensitive. So we are trying to create new portfolio where acceptance is more and we have large number of market share which is acceptable not into GT but modern trade also.
So this is how of course we need to grow with these numbers. Business doesn’t make sense for anybody to with such margins and all. So revenues and I’m sure coming quarters will be able to have better performance.
Shubhankar Gupta
So. So you mentioned that like there are I think four years, right. Ex factory areas, modern trade exports in government. Like government primarily three. So we have actually seen a degrowth in modern trade from 51 crores to now 50 crore in the last nine months.
Shubhankar Gupta
Right.
Riddhi Vora
So.
Vikash Agarwal
It’S almost same but we are.
Sumit Khowala
Increasing the team also.
Vikash Agarwal
We are talking aggressively to a lot of change and other formats also. So we are sure in coming quarters we’ll have a much better performance there.
Shubhankar Gupta
Okay, so any guidance on what like in terms of how we are looking at modern trade and what is the random way we can anticipate from that next quarter will.
Vikash Agarwal
Because it’s a new team and we have engaged a lot of new team for this. Maybe when you share a better concrete number.
Shubhankar Gupta
Got it. And were we able to like hire the head of sales? Head of sales, which I think there was some attrition on that front. So have you been able to find a replacement like. Like to let it replacement attrition for.
Vikash Agarwal
Head of sales? We have got one. We have got experienced who has recently joined two weeks back. So we’ll speak about it maybe next quarter. So once he gets settled and all. So. But yes, somebody has joined in this new position.
Shubhankar Gupta
Okay, sir. Perfect. Thank you.
Omkar Bhagre.
Thank you. The next question comes from the line of Isha Murthy from MAS Capital Investment. Please go ahead. Please proceed with your question. Are you there on the line? A reminder to all the participants that you may press star and one to ask a question. The next question comes from the line of Rajiv Jain from Arkin Investment. Please go ahead.
Rajiv Jain
Hello. Am I audible?
Omkar Bhagre.
Yes sir, you are.
Rajiv Jain
Yeah, thanks for the opportunity. So I just have a couple of questions. So firstly, the mid and premium products are driving growth. So how are the economy and premium segments performing in comparison to that.
Sumit Khowala
This quarter the economy segment didn’t perform well compared to mid premium and the premium segment. But going forward will come into. We are sure that the growth will also come from the economic sector.
Rajiv Jain
Okay, answer. Secondly, gross margin fell to 26.3% in quarter three versus 29.4 a year ago. So to what extent is this decline attributable to mix or pricing or raw material cost? And what gross margin range do you consider sustainable for FY26? Could you throw some light on that?
Sumit Khowala
This decline is basically because of aggressive discounts and schemes floated in the market. And it will continue in the near term but in long run it will be stabilized.
Rajiv Jain
Thank you. And all the Best for the future quarters.
Omkar Bhagre.
Thank you. A reminder to all the participants that you may press Star and one to ask a question. The next question comes from the line of GM Nick from JMK Capital. Please go ahead.
GM Nick
Hello. Am I audible?
Sumit Khowala
Yes, ma’.
GM Nick
Am. Yeah, first of all, thank you for the opportunity. Sir, my question was that given the flat revenue and pressure on realization, how are you managing the channel inventory? Is there any further risk of discounting? Didn’t get you. Can you please repeat? Yeah, the revenue have been a little flat and pressure. There has been some pressure on the realization. So how are you managing the channel inventory? Like is there any risk of further discounting?
Sumit Khowala
No means these are all structural discount. Not for clearance of inventory and means we.
Vikash Agarwal
Nothing to do with the channel with the current inventory nodes.
GM Nick
Okay. Okay. And so how is Macroman M series and Macroman performing versus Legacy Rupa brand? Like, what is the revenue mix split across premium, mid, premium and economy?
Sumit Khowala
The revenue mix for economy segment is.
Vikash Agarwal
Around.
Sumit Khowala
Percent and for mids around 56. For premium it’s around 10 to 11%.
GM Nick
Okay. Okay. And got it, sir. And sir, with the nine month volume growth at 2%, what underpins your confidence that volumes can accelerate meaningfully in FY27?
Vikash Agarwal
As mentioned, Ma’, am, we are focusing on other new channels like modern trade, E commerce and all. We have to focus on export as well. So of course we have continued focus will be there on GT in the new areas. But what the new channels we are building up, we have built up a strong team. And those numbers should come from other channels as well. And on top of that, we are building an aggressive portfolio which is more price sensitive, which has more easy acceptance in the market, seeing different competitive scenarios.
GM Nick
Okay, sir, got it. And so what would be the anticipated time frame for this price normalization?
Sumit Khowala
I didn’t get you.
GM Nick
Hello.
Vikash Agarwal
Your voice is very low. Next to three quarters at least.
Omkar Bhagre.
Hello, Ms. Jia, when you’re speaking, we cannot hear you properly. Your voice is very low.
GM Nick
Okay, so my question was that what is the anticipated time frame for your price normalization? Next.
Vikash Agarwal
Two, three quarters at least.
GM Nick
Okay, got.
operator
Thank you. Thank you. A reminder to all the participants that you may press Star and one to ask a question. Ladies and gentlemen, as there are no further questions, I would now like to hand the conference over to Omkar Bhagwe for closing remarks.
Omkar Bhagre.
Yeah. Thank you for joining us on call today. I would like to thank the management for sparing the time and answering all the queries. We are mufg in time Investor relations, advisors for Rupa Co. Ltd. For any queries, please feel free to contact us. Thank you everyone and have a great day.
Omkar Bhagre.
On behalf of Cerupa Co. Ltd. That concludes this conference. Thank you for joining us and you may now disconnect your lines.