Synopsis:
This Apparel company ‘s shares surged after it reported its quarterly earnings & proposed a merger of its brands.
The shares of this company, engaged in manufacture and sale of hosiery products, offering a wide range of garments & apparels, came into focus after it reported strong quarterly earnings and merger involving 9 companies.
Dollar Industries Limited with a market capitalization of Rs.2,094.53 crore, on Friday its share made a day high of Rs. 390 per share, up by 12 percent from its previous day’s close of Rs. 348.20 per share. It has given a return of 95.21 percent over a period of five years.
QoQ View
Operating Income for FY26 2nd quarter is Rs. 471.9 crore, up by 18.2 percent from Q1 FY26 revenue of Rs. 399 crore. Operating EBITDA is Rs. 60.3 crore in Q2 FY26, up by 40.6 percent from Rs. 42.9 crore in Q1 FY26. Resulting in Net profit growth of 65 percent QoQ to Rs. 35.2 crore in Q2 FY26.
YoY View
In Q2 FY26, Operating income stood at Rs. 471.9 crore, a growth of 5.6 percent from Rs. 446.9 crore in Q2 FY25. Operating EBITDA grew by 23.3 percent, to Rs. 60.3 crore in Q2 FY26 from Rs.48.9 crore in Q2 FY25. With Net profit of Rs. 35.2 crore in Q2 FY26, a growth of 32.7 percent from Rs. 26.5 crore in Q2 FY25 and EPS growth of 32.7 percent YoY.
Merger Updates
The merger brings together nine promoter-group companies involved in manufacturing, branding, and real-estate leasing. By combining these entities into one listed entity, they can streamline operations & align their long-term goals.
Post merger, Dollar Industries will directly manage its key verticals: brand ownership through Dollar Brands, manufacturing through Dindayal Texpro and Bhawani Yarns, and real-estate leasing through six property-focused entities. This consolidation helps the company operate independently and streamline all essential business functions.
Business Highlights
The thermal segment stood out with robust growth of 23.5 percent YoY in value, with volumes up 28.1 percent YoY in Q2 FY26, supported by expectation of a prolonged winter & product availability across key geographies, which brings us to their advertisement & distribution.
The company capped their annual Advertising expenses at 6.2 percent of revenue at Rs. 100 crore, in expectation that ad spends as a percentage of revenue will decline in coming years, aiding profitability.
In Distribution, the company continued to strengthen its presence in modern trade, through e-commerce & quick commerce, which contributed 10.2 percent of total sales in the quarter, wherein quick commerce alone contributed to a 4 percent in overall sales.
With Project Lakshaya (a project to reinvent the distribution model), the project has helped in increasing the number of distributors onboard to 317 as on Sep ’25 and volume contribution of 31 percent in H1 FY26.
About the company
A Leading Player in Branded Outerwear and Innerwear Established in 1972, with 4 manufacturing units totaling to 300 Million Garment manufacturing capacity, 15 percent Market share in the Indian hosiery space. It is engaged in manufacture and sale of hosiery products in knitted inner wear, casual wear and thermal wear.
Its Product portfolio includes- Dollar Men, Dollar women, Dollar always, Dollar Thermals, Dollar Junior & Dollar Protect for rain guards. With its portfolio extending into active wear, Innerwear & Athleisure.
Written by Gourav Pratap Singh
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