Radix Industries (India) Ltd (531412)
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, Radix Industries' revenue was ₹3.4 Cr (-58.1% year on year, -73.9% on the previous quarter), and net profit ₹0.4 Cr (-43.4% year on year); the operating margin was 16.8%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹3.4 | -58.1% | -73.9% |
| Operating profit | ₹0.6 | -30.1% | +4.8% |
| Net profit | ₹0.4 | -43.4% | -20.8% |
| EPS (₹) | 0.24 | -42.9% | -20.0% |
| Operating margin | 16.8% | — | — |
📢 Recent Corporate Announcements
Radix Industries reported a weak start to the fiscal year with Q1 FY27 revenue from operations plunging 58.1% YoY to ₹3.37 Cr from ₹8.04 Cr. Net profit followed a similar trajectory, declining 43.2% YoY to ₹0.36 Cr. On a sequential basis, the revenue contraction was even more severe, falling 73.9% compared to the March 2026 quarter. The company's 100% export-oriented business model in the human hair segment appears to be facing significant demand or supply-side headwinds.
- Revenue from operations fell 58.1% YoY to ₹3.37 Cr from ₹8.04 Cr in the year-ago period.
- Net profit decreased 43.2% YoY to ₹0.36 Cr, down from ₹0.63 Cr in Q1 FY26.
- Total expenses reduced by 60.5% YoY to ₹2.90 Cr, primarily due to a sharp drop in raw material consumption (₹2.37 Cr vs ₹4.43 Cr).
- Earnings Per Share (EPS) for the quarter stood at ₹0.24, a significant drop from ₹0.42 YoY.
- The company remains a single-segment business focused entirely on human hair processing.
Radix Industries reported a weak set of numbers for Q1 FY27, with revenue from operations falling 58% YoY to ₹3.37 crore compared to ₹8.04 crore in Q1 FY26. Net profit followed suit, declining 43% YoY to ₹0.36 crore from ₹0.63 crore. Sequentially, the performance was even more volatile, with revenue plummeting 74% from the ₹12.92 crore recorded in Q4 FY26. Despite the sharp top-line contraction, the company remained profitable, though EPS diluted to ₹0.24 from ₹0.42 YoY.
- Revenue from operations fell 58.1% YoY to ₹3.37 crore in Q1 FY27
- Net profit after tax decreased 43.2% YoY to ₹0.36 crore
- Quarterly EPS dropped to ₹0.24 from ₹0.42 in the corresponding previous year quarter
- Total expenses saw a sharp reduction to ₹2.90 crore from ₹7.34 crore YoY, primarily due to lower material consumption
- Profit Before Tax (PBT) margin improved to 14.1% in Q1 FY27 from 10.4% in Q1 FY26 despite lower scale
Radix Industries (India) Ltd has announced a board meeting on July 24, 2026, to consider and approve the unaudited financial results for the quarter ended June 30, 2026. This is a routine regulatory filing as per SEBI (LODR) Regulations. The trading window for insiders, which has been closed since July 1, 2026, is scheduled to reopen on July 27, 2026, 48 hours after the results are declared. Investors should look for the actual financial performance data to be released following this meeting.
- Board meeting scheduled for July 24, 2026, to approve Q1 results
- Financial results cover the quarter ended June 30, 2026
- Trading window closed since July 1, 2026, for insiders
- Trading window to reopen on July 27, 2026, 48 hours post-declaration
Financial Performance
Revenue Growth by Segment
The hair products segment revenue grew 46.47% YoY, reaching INR 48.34 Cr in FY25 compared to INR 33.00 Cr in FY24.
Geographic Revenue Split
100% of the company's revenue is derived from export markets, primarily overseas fashion-oriented markets.
Profitability Margins
Operating Profit Margin decreased from 10.22% to 7.84% (a 23.29% decline), and Net Profit Margin fell from 6.77% to 5.44% (a 19.59% decline) due to total expenses growing faster (48.29%) than total income (46.47%).
EBITDA Margin
Operating Profit Margin stood at 7.84% in FY25, down from 10.22% in the previous year, reflecting increased operational costs.
Capital Expenditure
Not disclosed in available documents; however, the company noted an absence of major capex plans in recent credit assessments.
Credit Rating & Borrowing
The company's ratings of [ICRA]BB (Stable) and [ICRA]A4 were withdrawn in December 2020 at the company's request. Borrowing costs are low as the company has a Debt-to-Equity ratio of 0.00.
Operational Drivers
Raw Materials
Human hair is the primary raw material, representing a significant portion of the INR 44.67 Cr total expenses.
Import Sources
Sourced domestically in India through a well-established procurement system that ensures easy availability at low cost.
Raw Material Costs
Total expenses, including raw materials, reached INR 44.67 Cr in FY25, representing 92.4% of total revenue.
Manufacturing Efficiency
Inventory turnover ratio improved by 100% YoY to 2.10, indicating significantly better movement of stock compared to the previous year's 1.05.
Strategic Growth
Expected Growth Rate
10%
Growth Strategy
The company aims to achieve growth by capitalizing on the global shift from synthetic to human hair products due to health concerns (cancer/allergies) associated with synthetic fibers, and by leveraging its debt-free status and improved inventory cycle.
Products & Services
Human hair, wigs, hair extensions, and related hair products.
Market Expansion
The company is largely dependent on overseas markets, with a focus on regions where human hair wigs are a fashion staple.
External Factors
Industry Trends
The global hair wigs and extensions industry is seeing sustained double-digit growth, with a clear consumer preference shift toward human hair over synthetic alternatives due to health risks.
Competitive Landscape
Faces intense competition from the unorganized sector and manufacturers of synthetic hair substitutes.
Competitive Moat
The moat is built on an established low-cost procurement system for human hair in India, which is difficult for international competitors to replicate at the same cost efficiency.
Macro Economic Sensitivity
Highly sensitive to global economic conditions and consumer spending in export markets as 100% of revenue is from international sales.
Consumer Behavior
Increasing health consciousness is driving consumers away from synthetic hair, which is perceived to cause allergic reactions and cancer.
Geopolitical Risks
Vulnerable to changes in international trade regimes and government regulations in export destinations.
Regulatory & Governance
Industry Regulations
Operations are governed by the Companies Act 2013, SEBI (LODR) Regulations 2015, and international standards for hair product safety.
Taxation Policy Impact
The effective tax rate is approximately 25.4% based on a Profit Before Tax of INR 3.52 Cr and Profit After Tax of INR 2.63 Cr in FY25.
Risk Analysis
Key Uncertainties
Volatility in foreign exchange rates and high customer concentration are the primary business risks, with potential margin impacts exceeding 10-15% if unhedged.
Geographic Concentration Risk
100% of revenue is concentrated in export markets.
Third Party Dependencies
High dependency on the top 5 customers for revenue stability.
Technology Obsolescence Risk
Synthetic hair technology remains a threat, though currently mitigated by health-related consumer preferences for natural hair.
Credit & Counterparty Risk
Receivables quality is a concern as Debtors Turnover slowed by 32.66% in FY25.
