Revenue on track, margins miss—competitive pressure lingers

₹202.4 Cr, +10.1% YoY vs ₹183.9 Cr YoY. Gross margin flat 37.4% vs 37.7%, confirming volume-only growth

EBITDA 7.8% delivered vs guided 9-10%. Ad spend 10.5% of revenue vs targeted 6-7%, shortfall of 110-210 bps

4-5% price hike taken in Q1 but transferred to trade via competitor schemes. Management expects August hike but hedges: 'competition dependent'

Management stated sound order book but heavily qualified: 'largely depends on how winter gets through this year'

Q1 came at 10.5% of revenue; FY27 target is 6–7%. This ~4 percentage point swing is unproven; execution risk high

Organized competitors now aggressively discounting and extending sale windows. Price hike attempts failing. Structural not temporary

Yarn prices rising (favorable) but competitors are neutralizing via extra schemes (unfavorable). Net effect: no pricing power

E-commerce, modern trade, LFS now highlighted as higher-margin, less-competitive avenues. Allocation and investment increasing

Advertisement and marketing spend came in at 10.5% of revenue in Q1; will rationalize to 6–7% going forward, helping achieve desired EBITDA.

4–5% hike taken, but intense competition forced brands to pass schemes to trade. Implementing new rate in August, though again with schemes.

Sound and healthy order book. Expect thermal to contribute better than last year. Largely depends on how winter plays out.

Yes, will implement in August. Further 4–5% hike needed. Depends on competitive scenario.

High potential. Senior heads appointed for e-commerce. Building infrastructure (warehouse, inventory, dispatch, IT). Looking at 20–25% e-commerce growth.

Softline brand undergoing major rebranding with new font and product range. Building strong team with NSM and ZSMs. Should fall on track in coming quarters.

Q4 was good, Q1 soft (5–7% de-growth YoY). From Q2 onwards expecting double-digit growth. Full year >double-digit.

Organized players using discounts and extended sale windows to gain share. Old stock was being cleared; exhausted now. Fresh stock with higher pricing from August should help.

Focusing on athleisure, women's, e-commerce, modern trade, LFS where margins are better. For women's, building team and secondary base. IT initiatives on inventory control.

ROCE and ROE not desirable. Industry facing tough competitive scenario. Multiple initiatives on channel shift, LFS, e-commerce. ROCE and ROE should improve in coming years. Can't sustain at current levels.

Q1 delivered 10.1% YoY in line with lower end. Q2 guidance repeated at 10–12% but dependent on competitive and pricing environment.

Q1 came at 7.8% vs guided 9–10%. Management says ad spend rationalization from 10.5% to 6–7% will restore margin. Execution risk high.

Acknowledged Q1 was elevated. Expects normalization but dependent on brand-building cycle. No hard commitment date.

For manufacturing, warehousing, DMS, ARS rollout. Gradual implementation state-by-state on DMS.

Organized competitors aggressively discounting and extending sale windows. 4–5% price hikes taken but transferred to trade via schemes. Structural, not inventory-driven.

EBITDA margin fell from 14% (2015–2022) to 7.8% now. ROCE from 25% to 10%, ROE from mid-teens to single digits. Q1 miss (7.8% vs 9–10%) shows deterioration continues.

Women's segment stuck at ~8% of revenue (Softline, Macrowoman). Rebranding and team-building underway but track record poor. Long-term aspiration >10–15% but no clear path.

Q1 ad spend spiked to 10.5% of revenue vs 6–7% target, eating 110–210 bps of margin. Management expects normalization but no clear trigger or discipline framework.

Thermal segment order book is sound but contribution depends on winter demand. QoQ volatility high (Q1 is weak season). Uncontrollable external factor.