Scoobee Day Garments (India) Ltd (531234)
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, Scoobee Day's revenue was ₹7.9 Cr (-49.3% year on year, +32.3% on the previous quarter), and net profit ₹-0.4 Cr (against a profit a year earlier); the operating margin was 4.9%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹7.9 | -49.3% | +32.3% |
| Operating profit | ₹0.4 | -82.8% | from loss |
| Net profit | ₹-0.4 | to loss | loss narrowed |
| EPS (₹) | -0.23 | to loss | loss narrowed |
| Operating margin | 4.9% | — | — |
📢 Recent Corporate Announcements
Scoobee Day Garments reported a weak Q1 FY27 with revenue falling 49.3% YoY to Rs 7.87 Cr from Rs 15.54 Cr in the previous year's corresponding quarter. The company swung to a net loss of Rs 0.52 Cr, compared to a profit of Rs 0.87 Cr in Q1 FY26. The core Garments segment saw its revenue nearly halve to Rs 7.41 Cr, while the Aluminium Roofing division contributed a marginal Rs 0.45 Cr. Total expenses of Rs 8.40 Cr exceeded total income, reflecting continued operational pressure.
- Revenue from operations declined by 49.3% YoY to Rs 7.87 Cr from Rs 15.54 Cr.
- Net loss of Rs 0.52 Cr for the quarter vs a net profit of Rs 0.87 Cr in Q1 FY26.
- Garments segment revenue fell sharply to Rs 7.41 Cr from Rs 14.93 Cr YoY.
- Total expenses stood at Rs 8.40 Cr, resulting in a loss before tax of Rs 0.52 Cr.
- Board approved the continuation of Mr. K L V Narayanan as Managing Director beyond the age of 70.
Scoobee Day Garments reported a sharp 49.3% year-on-year revenue decline to ₹7.87 Cr for Q1 FY27. The company posted a net loss of ₹0.52 Cr, a significant downturn from the ₹0.87 Cr profit recorded in the same quarter last year. While revenue improved 32% on a sequential (QoQ) basis from ₹5.95 Cr, the company remains in the red for the third consecutive quarter. The core Garments segment saw its revenue nearly halve from ₹14.93 Cr to ₹7.41 Cr YoY, reflecting intense competition and limited pricing power.
- Revenue from operations fell 49.3% YoY to ₹7.87 Cr from ₹15.54 Cr in June 2025.
- Reported a net loss of ₹0.52 Cr against a net profit of ₹0.87 Cr in the year-ago quarter.
- Garments segment revenue declined to ₹7.41 Cr from ₹14.93 Cr in the previous year's corresponding quarter.
- Aluminium Roofing segment remains marginal with revenue of only ₹0.45 Cr and a segment loss of ₹0.03 Cr.
- Total expenses were reduced to ₹8.40 Cr from ₹14.67 Cr YoY, primarily through lower stock-in-trade purchases.
Scoobee Day Garments (India) Ltd has scheduled a board meeting on August 14, 2026, to consider and approve the unaudited standalone financial results for the quarter ended June 30, 2026. The company is currently facing financial headwinds, reporting a TTM net loss of ₹6 Cr and a negative operating margin of -8.2%. Investors will be monitoring these results to see if the company can arrest the revenue decline observed in FY26, where annual revenue fell to ₹32.75 Cr from ₹46.5 Cr in FY25. The trading window for insiders has been closed since July 1, 2026.
- Board meeting date set for August 14, 2026, to review Q1 FY27 performance.
- Trading window for promoters and designated persons closed from July 1, 2026.
- Company reported a net loss of ₹1.52 Cr in the most recent quarter (March 2026).
- TTM revenue stands at ₹33 Cr against a market capitalization of ₹118 Cr.
Financial Performance
Revenue Growth by Segment
Total revenue declined by 21% YoY to INR 40.2 Cr in FY25. The Garment division, the primary driver, saw revenue drop 16.9% to INR 37.60 Cr from INR 45.26 Cr. The Roofing sheet division experienced a sharper decline of 53.9%, falling to INR 2.60 Cr from INR 5.64 Cr in the previous year.
Geographic Revenue Split
Not disclosed in available documents, though operations are centered in Karur, Tamil Nadu (textiles) and Kizhakkambalam, Kerala (roofing).
Profitability Margins
Net Profit Ratio significantly compressed to 4.20% in FY25 from 9.23% in FY24. This decline was driven by a 16.9% drop in garment sales and a 53.9% drop in roofing sales, alongside rising raw material costs which squeezed the bottom line.
EBITDA Margin
Operating (EBITDA) margins declined to approximately 13% in FY25 from over 20% in previous years. This 700+ basis point drop is attributed to intense competition in the textile sector and a slump in international off-take, which reduced the company's pricing power.
Capital Expenditure
The company previously invested in a 3.2 Tons per day knitting unit at its Karur factory. Currently, it is proposing an Industrial Infrastructure Project (Private Industrial Park) on 52 acres of land in Palakkad, Kerala, to diversify its asset base.
Credit Rating & Borrowing
CRISIL reaffirmed ratings at 'BB-/Stable/A4+' for INR 30.9 Cr of bank facilities. While the company benefits from promoter funding, its financial profile is constrained by a leveraged capital structure with a gearing of 3.2 times as of March 31, 2025.
Operational Drivers
Raw Materials
Key raw materials include Cotton (for knitwear) and Aluminium/Galvanized Iron (for roofing sheets). Cotton costs are highly sensitive to Minimum Support Price (MSP) operations, which covered 34% of total Indian production in the 2024-25 season.
Import Sources
Primarily sourced domestically within India; the company notes that India is the world's second-largest producer of textiles, providing a strong local supply base.
Key Suppliers
The Cotton Corporation of India Ltd. (CCI) is mentioned as a major nodal agency for cotton procurement under MSP, impacting the company's input pricing.
Capacity Expansion
Current knitting capacity is 3.2 Tons per day at the Karur plant. Future expansion is focused on the 'Private Industrial Park' under the PIE scheme in Kerala to leverage 52 acres of owned land.
Raw Material Costs
Raw material costs have seen a 'faster hike,' adversely affecting all textile sectors. The company notes that increased input costs in India are leading to higher production costs, which directly contributed to the EBITDA margin drop from 20% to 13%.
Manufacturing Efficiency
Manufacturing efficiency is challenged by a lack of R&D investment, which is noted as being 'very low' across the Indian textile firm landscape. The company's ROCE fell to 4.04% in FY25 from 11.81% in FY24, indicating declining capital efficiency.
Logistics & Distribution
Distribution is impacted by infrastructural blocks and lengthy transportation times, which are cited as major curbs to rapid development in the industry.
Strategic Growth
Expected Growth Rate
12-13%
Growth Strategy
Growth will be pursued through corporate rebranding (changing name to Scoobee Day Garments), setting up a Private Industrial Park in Kerala, and leveraging the 'China plus one' policy to capture international retail orders. The company also aims to benefit from zero-duty exports to Australia and the UAE.
Products & Services
Premium quality knitwear for infants and children, readymade garments, and Aluminium/Galvanized Iron roofing sheets and accessories.
Brand Portfolio
Scoobee Day, Anna, and Kitex (legacy group brands).
New Products/Services
The company is exploring technical textiles, a market in India expected to grow at a 9% GVA rate, and has recently operationalized a new knitting unit to internalize production.
Market Expansion
Targeting zero-duty markets in Europe, Canada, the UK, and GCC countries following new trade agreements. The company is also expanding its domestic footprint through the proposed industrial park in Kerala.
Strategic Alliances
The company relies heavily on its parent group (Anna-Kitex) for need-based funding and order support when external customer demand decreases.
External Factors
Industry Trends
The Indian textile industry is expected to reach USD 350 billion by 2030. Trends include a shift toward technical textiles and the growth of E-commerce, which the company plans to leverage for its garment division.
Competitive Landscape
Intense competition from both organized and unorganized players in India, as well as international competition from China, Bangladesh, Vietnam, and Italy.
Competitive Moat
The primary moat is the 'Anna-Kitex' legacy and promoter support, providing access to unsecured loans and group-level orders. However, this is weakened by a lack of product differentiation and low R&D.
Macro Economic Sensitivity
Highly sensitive to global economic growth; a slowdown has led to international retailers reporting high inventory and reducing off-take from suppliers like SDGIL.
Consumer Behavior
Shift toward premium quality knitwear for infants and children, which currently aids the company's operating margins despite the overall revenue slump.
Geopolitical Risks
Beneficiary of the 'China plus one' policy as global retailers seek alternate supply bases. However, it faces competition from regional trade blocs and bilateral agreements involving other nations.
Regulatory & Governance
Industry Regulations
Operations are influenced by the PLI Scheme (INR 10,683 Cr allocation) and the MITRA Park scheme, which aim to modernize textile machinery and infrastructure.
Taxation Policy Impact
The company benefits from the RoDTEP scheme, which refunds central, state, and local duties/taxes on exported products, positively impacting cash flows.
Risk Analysis
Key Uncertainties
The primary uncertainty is the 'Stretched' liquidity profile, evidenced by a Current Ratio of 0.36 and a DSCR of 0.76, making the company dependent on continuous promoter intervention.
Geographic Concentration Risk
Manufacturing is concentrated in Karur (Tamil Nadu) and Kizhakkambalam (Kerala), making it vulnerable to regional labor issues or infrastructural blocks in these specific hubs.
Third Party Dependencies
High dependency on group companies for both financial liquidity (unsecured loans) and revenue (orders during demand slumps).
Technology Obsolescence Risk
Risk is high due to the acknowledged lack of product development and innovation centers, which may lead to a loss of competitiveness against technologically advanced international peers.
Credit & Counterparty Risk
Trade receivables turnover ratio slowed significantly to 10.92 in FY25 from 43.07 in FY24, indicating a potential deterioration in the quality or collection speed of receivables.
