Page Industries: brokerages keep Buy ratings despite weak Q2 volume growth

what happened

According to TradingView, Page Industries shares edged higher on Friday after falling nearly 13% in the previous session. Analysts at HSBC and Nomura kept their Buy ratings, expecting volume growth to recover in the second half of FY27. Early in the session the shares traded 0.5% higher at Rs 32,000 apiece, but they have lost 10.5% so far in 2026, while the Nifty 50 index has fallen around 4% over the same period.

HSBC cut its target price to Rs 43,870 but noted that volume growth in Q2 FY27 slowed to 5.5%, well below its 10% estimate. The company kept its guidance for double-digit volume growth for the full year, which HSBC said would require roughly 14% growth in the second half. Nomura set a target of Rs 41,000 and flagged violations under the Foreign Exchange Management Act (FEMA) related to online retailing. The potential penalty ranges from 0.75 to three times the Rs 48 crore involved, or Rs 36 crore to Rs 144 crore, although management expects a negligible financial impact.

Consolidated net profit rose 3.8% year on year to Rs 202.5 crore, revenue grew 11.5% to Rs 1,439.6 crore and EBITDA rose 7.4% to Rs 300.2 crore. Operating margin narrowed by 80 basis points to 20.8% from 21.6%, as the company cited elevated cotton prices and crude oil-linked raw material costs.

why it matters

For investors the key questions are whether the company can deliver the volume growth it has guided to in the second half and how serious the regulatory issue turns out to be. The combination of a soft quarter and penalty risk explains the sharp market reaction to the results.

market impact

Page Industries shares: weak volumes and FEMA penalty risk weigh on investor sentiment

• ↔Page Industries shares mixed — weak quarter and FEMA penalty risk offset hopes of volume recovery and broker support

tags

instruments