Page Industries Upgradeed as Strong Volumes Support FY27 Growth Outlook

Brokerages cite robust demand, premiumisation, price hikes and improving margins as key drivers for the innerwear major

Robust demand, price hikes and premiumisation are expected to continue supporting volume growth and earnings for innerwear manufacturer Page Industries.

Although volume growth stood at 4 per cent in FY26, the company reported a 10.4 per cent volume increase in Q4FY26. Analysts expect the company to continue this trajectory into FY27.

While the outlook has improved, analysts noted that valuations remain on the higher side. The stock has gained 11 per cent over the past three months, with most brokerages maintaining a positive view on the company’s volume and earnings outlook.

Kotak PCG Research expects the company’s growth during the current financial year to be driven by faster expansion in the women’s wear and athleisure categories.

Revenue and Earnings Estimates Revised Upward

Brokerages expect further improvement in realisations through price hikes and a better product mix.

Double-digit volume growth, combined with stronger realisations, is projected to drive mid-teen revenue growth in FY27.

The brokerage has increased its FY27–29 revenue estimates by 5–7 per cent and earnings per share projections by 2–4 per cent.

Despite maintaining a bullish outlook, the brokerage has retained a sell rating, noting that Page Industries is trading at 45 times its FY28 earnings estimates, which it considers expensive.

However, it has revised its target price to ₹37,000 from ₹34,500, reflecting higher revenue growth expectations.

Market Consolidation Expected to Benefit the Company

Analysts believe consolidation within the market could help Page Industries improve its market share by reducing competitive pressure.

According to JM Financial Research, several competing brands have either exited the general trade channel, reduced their geographical presence or cut back discounting and marketing expenditure due to profitability pressures.

This has created opportunities for category leaders such as Page Industries to strengthen their position through their supply chain, distribution network and brand investments.

The company is also expected to gain traction in the e-commerce segment, which currently contributes 15 per cent of revenue.

Goldman Sachs Research has also increased its target price to ₹48,000 from ₹45,000, following the price hike implemented in May and expectations of sustained volume growth.

Margins and Cost Pressures

Brokerages noted that recovery in volume growth is being supported by structural factors and the company's strong performance through exclusive brand outlets compared with multi-brand outlets and distributor channels.

Analysts also expect pressure on raw material costs to ease in the near term, as cotton prices have declined from 85¢ to 76¢ per pound.

During Q4, inflationary pressures on cotton and other raw material costs remained elevated. The company addressed these pressures through strategic sourcing initiatives, supply chain optimisation, operational efficiency improvements and selective pricing interventions.

Operating profit margins stood at 20.8 per cent, increasing by 62 basis points year-on-year and 214 basis points sequentially.

Despite plans to increase investments in technology and marketing, the company has reiterated its long-term operating profit margin guidance of 19–21 per cent.