Page Industries Limited is the exclusive licensee of Jockey International Inc. (USA) for manufacturing, distribution, and marketing of the Jockey brand in India, Sri Lanka, Bangladesh, Nepal, the UAE, and Oman. Headquartered in Bengaluru, it is a market leader in innerwear and athleisure segments, renowned for quality, innovation, and expansive retail presence across online and offline platforms.
In this article we are going to discuss the summary of the management commentary that was delivered on Q4FY25 performance.
Macro Environment and Adaptability
FY25 was marked by shifts in the economic, geopolitical, and technological landscape.
Despite inflationary pressures affecting consumer sentiment, particularly in H1, Page Industries responded proactively.
The company successfully aligned product offerings with changing consumer expectations, especially in e-commerce.
Digital Transformation
Strategic investments continued across digital initiatives.
Major progress seen in the distribution management system, SAP core transformation, and consumer engagement platforms.
A revamped Jockey.in website and mobile app were well received, enhancing user experience.
Operational Expansion
A new production facility in Odisha is ready for commercial operations.
The auto replenishment system (ARS) has improved inventory and supply chain management efficiency.
Financial Performance Highlights
Q4 is typically the leanest quarter; despite this, PAT grew by 51.6%, and revenue grew by 10.6% YoY.
Full-year revenue growth stood at 8%, and PAT increased 28%.
Effective cost controls and improved operational efficiencies contributed to healthy operating margins.
| Particulars | Q4 FY25 | Q4 FY24 | YoY Growth (%) | FY25 | FY24 | YoY Growth (%) |
|---|---|---|---|---|---|---|
| Sales Volume (Million Units) | 49.2 | ~45.3 (Est.) | 8.5% | 219.6 | ~208.1 (Est.) | 5.5% |
| Revenue | 10,981 | 9,930 (Est.) | 10.6% | 49,349 | 45,694 (Est.) | 8.0% |
| EBITDA | 2,352 | 1,643 (Est.) | 43.2% | 10,626 | 8,598 (Est.) | 23.6% |
| EBITDA Margin (%) | 21.4% | ~16.5% (Est.) | +490 bps | 21.5% | ~18.8% (Est.) | +270 bps |
| PAT (Net Profit) | 1,640 | 1,082 (Est.) | 51.6% | 7,291 | 5,692 (Est.) | 28.1% |
| PAT Margin (%) | 14.9% | ~10.9% (Est.) | +400 bps | 14.8% | ~12.5% (Est.) | +230 bps |
| Inventory Days | 64 | 93 | -29 days | — | — | — |
| Working Capital Days | 54 | 75 | -21 days | — | — | — |
| Dividend per Share (Full Year) | ₹900 | — | — | — | — | — |
| Capex | — | — | — | ₹80 Cr (FY25) | — | — |
| Planned Capex (FY26) | — | — | — | ₹180 Cr (Guided) | — | — |
| Debt Status | Debt-Free | — | — | Debt-Free | — | — |
Retail and Channel Expansion
- Page closed FY25 with over:
- 111,000 multi-brand outlets
- 1,453 exclusive brand stores (EBOs)
- 1,803 large-format point-of-sale locations
- Online channels (Jockey.in, app, e-aggregators) continue to show solid traction.
Strategic Focus Areas
Continued investment in technology and marketing while controlling overheads.
Focus on balanced profitable growth, prioritizing volume-led expansion.
ARS implementation has enhanced inventory accuracy and efficiency.
Outlook and Capex
Capex for FY26 estimated at INR 180 crore (mainly for K.R. Pet 2 expansion and new land in Odisha).
Continued digital transformation with IT spends expected to be 1.25%–1.5% of revenue.
Marketing spends maintained at 4%–5% of revenue.
E-commerce and Channel Performance
E-commerce grew in strong double digits; now contributes over 10% of revenue.
Quick commerce (q-comm) channels like Blinkit, Zepto are growing rapidly but still form a small share.
Exclusive Brand Stores (EBOs) saw significant growth, driven by both store additions and same-store sales.
Category Performance
Innerwear (men’s and women’s) performed well, with the women’s innerwear clocking growth on par with men’s.
Kidswear outpaced brand average growth post-pandemic stabilization.
Accessories like socks and handkerchiefs showed slightly better growth than athleisure.
Athleisure continues to carry higher inventory but is expected to normalize further.
Inventory & Supply Chain
Inventory for outerwear/athleisure reduced by 7 days YoY; further 7–8 day reduction targeted.
ARS-driven replenishment ensures that primary sales don’t exceed secondary/tertiary demand.
Consumer Segments and Market Trends
Stronger growth seen in Tier 3 and 4 cities (50% of business), outperforming metros by ~4 percentage points.
Plans underway to attract younger consumers with trendier athleisure fits and styles in FY26.
Emphasis on offering value-for-money as product prices haven’t changed for 3 years despite inflation.
Manufacturing Strategy
- Page maintains a balance of 70–75% in-house production and 25–30% outsourcing.
- Outsourcing helps absorb volume surges, add technical capabilities, and reduce capex burden.
Question and Answer Session Highlights
Q: Volume growth was 8.5% in Q4. Was this performance in line with expectations?
A: Yes, it was in line with expectations. However, the overall retail environment remains tepid. We expect improvement going forward due to factors like tax exemptions, good monsoon forecast, and lower inflation.
Q: How did e-commerce perform this quarter and what’s its contribution?
A: E-commerce showed handsome double-digit growth and now contributes a little over 10% of total revenue.
Q: What led to gross margin improvement this quarter?
A: Two major factors: stable raw material (especially fabric) prices and improved production efficiency. These helped maintain margins without any price hikes.
Q: Which segments contributed to the 9% volume growth—innerwear or athleisure?
A: Growth was more prominent in innerwear and accessories (socks, towels, etc.) compared to athleisure. Inventory levels played a role.
Q: Has growth momentum continued into the new quarter?
A: Retail has remained consistent with Q4 trends.
Q: Are there any price hikes planned for FY26?
A: No price hikes are planned in the near quarters as of now.
Q: What is the progress in women’s and kids’ categories?
A: Kidswear is growing above average. Women’s innerwear is growing at par with men’s, though outerwear has lower growth due to higher inventory in the channel.
Q: How do you balance volume and margin growth?
A: Multiple initiatives like supply chain efficiency, demand planning, and ARS are paying off. Cost controls and sweating assets have helped maintain margins.
A: Balanced profitable growth is our focus. Despite cost pressures, we aim to maintain EBITDA margins in the 19–21% range.
Q: If there was no price hike, what explains the 2% rise in realizations?
A: Due to product premiumization, higher share of athleisure, and better performance in e-commerce (where we sell at full price).
Q: How much did e-commerce grow YoY?
A: It grew around 41% in FY25.
Q: Is there scope for EBITDA margins to go above 21%?
A: Unlikely. Despite strong sales, we face wage inflation, IT investments, and R&D costs. We’re comfortable maintaining 19–21%.
Q: What drove strong premiumization in a tough environment?
A: Consumers are naturally upgrading within and across categories due to increased purchasing power. E-commerce full-price sales also support premiumization.
Q: Any upside to EBITDA margin guidance?
A: No, because rising input costs and ongoing investments will offset margin gains.
Q: Will Odisha plant bring any tax benefits?
A: It offers state subsidies like wage and capital subsidy but will not significantly impact company-wide margins.
Q: Did early Eid improve Q4 sales and may affect Q1?
A: Yes, it helped retail throughput in select regions, but it’s not significant enough to materially affect Q1.
Q: Will employee and other costs rise now that volume growth is back?
A: Manufacturing efficiency has improved by 18–20%. With better lead times and lower inventory, costs will increase proportionally with revenue.
Q: What is the current athleisure inventory level, and how does it compare to pre-COVID?
A: Athleisure inventory is now over 50 days—down 7 days YoY, with another 7–8 days targeted. Still higher than pre-COVID levels.
Q: FY25 dividend implies 135% payout. Is this a trend?
A: Not necessarily. Our policy is up to 60% payout, but excess funds allowed us to pay more this year.
Q: FY26 Capex guidance?
A: Around ₹180 crore, primarily for K.R. Pet 2 expansion and land acquisition in Odisha.
Q: Is q-commerce (Blinkit, Zepto) a high-margin channel?
A: Quick commerce is growing fast but still a small share. Margins are not significantly higher than other channels.
Q: Are you seeing competition from other brands in q-commerce?
A: Not materially. Page continues to lead in this category despite the presence of other brands.
Q: What drove the increase in opex as % of revenue (excluding employee costs)?
A (Deepanjan B.): Mainly due to higher IT and marketing spends. FY24 was a low base; FY25 reflects normalization.
Q: Does your FY26 demand confidence reflect 45-day sales data?
A: No, it’s based on forward-looking plans, not on early FY26 performance.
Q: How do Tier 2 and 3 cities perform vs metros?
A: Tier 3 & 4 cities grew ~4 percentage points more and contribute 50% of total revenue.
Q: Is the environment now better for faster inventory reduction and growth in athleisure?
A: Yes. Athleisure inventory is expected to reduce further. Specific business plans and youth-focused styling are in place for FY26.
Q: How much does EBO (Exclusive Brand Outlet) contribute to revenue?
A: We don’t disclose channel-wise numbers, but EBO growth is strong in both new and existing stores.
Q: Did EBO contribute to gross margin expansion?
A: Not significantly. Gross margins are similar across channels; efficiency and cost controls were key drivers.
Q: What % of production is outsourced vs in-house?
A: 27% is outsourced. The Odisha plant won’t immediately change this.
A: We maintain a 70:30 in-house:outsourced ratio for strategic flexibility and technical capability access.
Q: Can Page return to high single-digit or double-digit volume growth in FY26?
A: That is the intent. We aim to replicate or exceed Q4 volume growth (8.5%) in FY26.
Q: How did secondary and tertiary sales fare in Q4?
A: Secondary was slightly ahead of primary in athleisure. Innerwear showed matching primary and secondary growth. ARS ensures primaries don’t exceed demand.
Q: What is the current channel inventory level?
A: We don’t disclose absolute numbers but confirm inventory is reducing due to ARS maturity.
Q: Is Tier 3 & 4 outperformance specific to Page or market-wide?
A: Likely market-wide, but Page has a stronger rural reach than competitors at our price points.
Q: Could you lower margins slightly to gain volume share?
A: We won’t compromise on product quality or pricing strategy. We already offer great value due to no price hikes for 3 years.
Q: Why was Q4 gross margin 400 bps higher than Q3 without a price hike?
A: Two reasons: low-cost inventory usage and sustained production efficiency improvements.