Shares of Campus Activewear Ltd fell nearly 3% today to ₹253.40 after the company reported weaker profitability metrics in its Q1 FY26 results despite marginal revenue growth.
The key drag on investor sentiment was EBITDA performance. While revenue from operations grew 1.2% year-on-year to ₹343.3 crore, EBITDA fell 6% YoY to ₹49.1 crore, and margins narrowed to 14.30% from 15.34% a year ago. The drop in operating profitability overshadowed the modest top-line growth.
Other Financial Highlights
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PAT came in at ₹22.2 crore, down 12.6% YoY, with net profit margin slipping to 6.4% from 7.4%.
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Sales volume dropped 11.6% YoY to 5.1 million pairs, partially offset by a 14.5% YoY rise in average selling price to ₹671.
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EBITDA margin compression was driven by higher costs, despite improved pricing.
The combination of a drop in EBITDA, weaker margins, and a decline in profit led to a sell-off in the stock during morning trade, with the market pricing in near-term margin pressure.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should consult a qualified financial advisor before making investment decisions.
