Page Industries share price drops after Q2 results and FEMA note

What happened. On Thursday, November 12, Page Industries, the exclusive licensee of Jockey and Speedo in India, reported results for the quarter to September 30, 2026. Revenue was 14,396 million rupees, up 11.5%. Sales volume was 59.7 million pieces, up 5.5%. EBITDA (earnings before interest, tax, depreciation and amortisation) was 3,001 million rupees, up 7.4%, a margin of 20.8%. Profit after tax was 2,025 million rupees, up 4%. The board declared a second interim dividend of 150 rupees a share.

The FEMA note. India's Foreign Exchange Management Act of 1999 is known as FEMA. In the results filing the company says it sold Jockey and Speedo products, including imported ones, online without opening physical retail stores. It says this did not follow the retail trading rules in the Foreign Exchange Management (Non-Debt Instruments) Rules, 2019. It applied to the Reserve Bank of India (RBI) for compounding on May 20, 2026. On October 16 the RBI returned the application and advised the company to first get post-facto approval from the Government of India. Management says it is working on that approval, plans to reapply, and expects the RBI to compound the matter. It says the financial impact, if any, is not likely to be material. The Economic Times adds that the company says it inadvertently violated the rules but has since complied.

The share and the brokers. The Economic Times says the shares closed more than 12% lower at 32,059.50 rupees on the BSE on Thursday. Reuters says they slumped 11% and CNBC TV18 says 13%, so check a live price feed for the exact figure. CNBC TV18 says brokerages trimmed price targets, citing weaker-than-expected volume growth. Citi cut its target to 37,300 rupees from 46,500, and HSBC trimmed its target to 43,870 rupees. HSBC said volume growth was below its 10% estimate. The company blamed a shift in the festive season. Management repeated its double-digit volume growth goal for FY27.

What one broker estimated. CNBC TV18 says Nomura put the amount involved at 48 crore rupees (480 million) and said a penalty could be 0.75 to 3 times that, with no precedent for a three-times levy. That is a broker's estimate. The company's filing gives no penalty figure. Nomura also noted that online sales of imported Jockey products have been restricted, and that Speedo now goes through third-party franchisees.

What next. The company is seeking government approval before it reapplies to the RBI. The next quarterly results will show how volume growth compares with the double-digit goal.

Confirmed facts

• Page Industries reported results for Q2 of its financial year 2027, the quarter ended September 30, 2026, on November 12, 2026.^[1][2]
• Page Industries is the exclusive licensee of the Jockey and Speedo brands in India.^[2]
• Revenue was 14,396 million rupees, up 11.5% year on year.^[2][3]
• Sales volume was 59.7 million pieces, up 5.5%.^[2][3]
• EBITDA was 3,001 million rupees, up 7.4%, a margin of 20.8%.^[2]
• Profit after tax was 2,025 million rupees, up 4%.^[2][3]
• For the first half, revenue was 28,601 million rupees, up 9.7%, and profit after tax was 3,954 million rupees, broadly flat.^[2]
• The board declared a second interim dividend of 150 rupees per equity share on November 12, 2026.^[1]
• The results filing says the company carried out retail trading of Jockey and Speedo products, including imported ones, through e-commerce without physical retail stores, and that this was not in accordance with the retail trading provisions of the Foreign Exchange Management (Non-Debt Instruments) Rules, 2019, issued under FEMA.^[1]
• The company applied to the RBI for compounding on May 20, 2026. On October 16, 2026 the RBI returned the application and advised the company to first obtain post-facto approval from the Government of India.^[1]
• Management says it is in the process of obtaining the approval and plans to reapply. It expects the RBI to compound the non-compliance, says the financial impact, if any, is not likely to be material, and made no adjustment to the results.^[1]
• The Economic Times reports that the company says it inadvertently violated the retail trading provisions but has since complied, and that its chief financial officer told analysts it is applying to the Department for Promotion of Industry and Internal Trade.^[5]
• The Economic Times reports that the shares closed more than 12% lower at 32,059.50 rupees on the BSE on Thursday, November 12.^[5]
• Reuters says shares of the company slumped 11% after the results.^[3]
• CNBC TV18 says the stock plunged 13% on Thursday after the results.^[4]
• CNBC TV18 says brokerages trimmed their price targets, citing weaker-than-expected volume growth.^[4]
• CNBC TV18 reports that Citi cut its price target to 37,300 rupees from 46,500, and that HSBC trimmed its target to 43,870 rupees.^[4]
• HSBC said volume growth of 5.5% was below its estimate of 10%, according to CNBC TV18.^[4]
• The company attributed the slower volume growth to a shift in the festive season and reiterated its double-digit volume growth guidance for FY27, according to CNBC TV18.^[4]
• CNBC TV18 reports that Nomura estimated the amount involved at 48 crore rupees, said a penalty could range from 0.75 to 3 times that amount, and said there is no precedent for a three-times levy.^[4]
• CNBC TV18 reports, citing Nomura, that after the disclosure the company restricted online sales of its imported Jockey products, and that Speedo is no longer run as a direct-to-consumer business and is routed through third-party franchisees.^[4]

Implications

• ConfirmedThe FEMA matter comes from the company's own results filing, which also says management expects no material financial impact.
• ConfirmedCiti and HSBC cut their price targets, as reported by CNBC TV18. These are the brokers' views, not our advice.
• Our readingOur reading: reports tie the share fall to weaker volume growth and to the FEMA note together, while profit after tax rose. We cannot split how much each one mattered.

Still unknown

• Whether the RBI will compound the matter, and any amount. The 48 crore rupees and the penalty range are a broker's estimate, not a company figure.
• How long the government approval will take and what it will decide.
• The exact size of the share fall: Reuters says 11%, the Economic Times says more than 12% at the close, CNBC TV18 says 13%.
• Whether volume growth reaches the company's double-digit goal for FY27.

Who it affects

India. Anyone following Page Industries, Jockey or Indian listed companies

Sources

1. Page Industries Limited: Unaudited Financial Results for the quarter ended 30 September 2026 (filing to BSE and NSE) November 12, 2026 · official
2. Page Industries Limited: Page Industries Limited delivers 11.5% revenue growth in Q2 FY27 November 12, 2026 · official
3. Reuters: Page Industries posts higher quarterly profit on strong volume growth November 12, 2026 · media
4. CNBC TV18: Page Industries share price target cut by Citi, HSBC on Q2 FEMA concerns November 13, 2026 · media
5. The Economic Times: Page Industries discloses 'inadvertent' FEMA violation, shares tank November 12, 2026 · media