DOLLARNSENovember 14, 2025

Dollar Industries Limited

5,536words

94turns

6analyst exchanges

4executives

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Management on call

Ankit Gupta

PRESIDENT MARKETING, DOLLAR INDUSTRIES LIMITED

Gaurav Gupta

VICE-RESIDENT STRATEGY, DOLLAR INDUSTRIES LIMITED

Ajay Patodia

CHIEF FINANCIAL OFFICER, DOLLAR INDUSTRIES LIMITED

Shreya Baheti

ANAND RATHI SHARE & STOCK

Key numbers — 40 extracted

rs,

everyone and thank you for joining us today. We extend our sincere gratitude to all our shareholders, analysts and stakeholders for your continued trust and support. Your confidence in dollar industri

50%

ontrol and meaningfully reduce related party transactions. The creation of promoter trust to hold 50% of the promoter stake will ensure continuity, preserve long-term ownership stability and further

5.6%

ing to financial performance: We delivered a strong quarter while operating income grew 5.6% year-on-year to Rs. 471 crores, supported by stable demand across key categories. Operating EBITD

Rs. 471 crore

ormance: We delivered a strong quarter while operating income grew 5.6% year-on-year to Rs. 471 crores, supported by stable demand across key categories. Operating EBITDA grew at a healthy 23.3% ye

23.3%

471 crores, supported by stable demand across key categories. Operating EBITDA grew at a healthy 23.3% year-on-year to Rs. 603 million, with margins expanding notably by 183 bps to 12.8%, reflecting

Rs. 603 million

by stable demand across key categories. Operating EBITDA grew at a healthy 23.3% year-on-year to Rs. 603 million, with margins expanding notably by 183 bps to 12.8%, reflecting significant benefits of operating

183 bps

EBITDA grew at a healthy 23.3% year-on-year to Rs. 603 million, with margins expanding notably by 183 bps to 12.8%, reflecting significant benefits of operating leverage and ongoing cost optimization ini

12.8%

at a healthy 23.3% year-on-year to Rs. 603 million, with margins expanding notably by 183 bps to 12.8%, reflecting significant benefits of operating leverage and ongoing cost optimization initiatives.

6.2%

rage and ongoing cost optimization initiatives. We have been able to curtail our advertisement to 6.2% of operating income in H1FY'26 as compared to 7.2% in H1FY'25 and plan to further reduce this per

7.2%

ve been able to curtail our advertisement to 6.2% of operating income in H1FY'26 as compared to 7.2% in H1FY'25 and plan to further reduce this percentage in the coming quarters. Profit after tax st

Rs. 352 million

Y'25 and plan to further reduce this percentage in the coming quarters. Profit after tax stood at Rs. 352 million up 32.7% year-on-year, resulting in a PAT margin of 7.4%. Working capital saw an improvement this

32.7%

rther reduce this percentage in the coming quarters. Profit after tax stood at Rs. 352 million up 32.7% year-on-year, resulting in a PAT margin of 7.4%. Working capital saw an improvement this quarter.

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Guidance — 20 items

Turning to financial performance

opening

“We have been able to curtail our advertisement to 6.2% of operating income in H1FY'26 as compared to 7.2% in H1FY'25 and plan to further reduce this percentage in the coming quarters.”

Ajay Patodia

opening

“Our advertisement expenses have been curtailed to 6.2% of operating income in H1FY'26 compared to 7.2% in H1FY'25, and we plan to further reduce this proportion in the coming quarter.”

Ajay Patodia

opening

“For the first half of FY'26, operating income grew 11.6% year-on-year to Rs.”

Yash Tawani

“And how much retail touch points do we target to increase on a particular year?”

Ankit Gupta

“And out of which, 75,000 to 80,000 retailers are in a Lakshya project.”

Yash Tawani

“And including the Lakshya and the non-Lakshya, what is the target usually that we usually keep it in our mind that these much retail count do we have to add it a year?”

Ankit Gupta

“So, we have our target set that we need to have around 2.5 lakh active retail outlets.”

Ankit Gupta

“So, this is the kind of target we have set for us in the next couple of years.”

Ajay Patodia

“In our project Lakshya, we already mapped around 2,91,000 outlets.”

Ajay Patodia

“So, in our Lakshya project, we have detail for every retailer.”

Risks & concerns — 1 flagged

There is nothing much more, any pressure on this.

— Ajay Patodia

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Q&A — 6 exchanges

Hi, everyone. Just want to get a sense that how much usually, let's say, on an average or a ballpark basis, the business will usually get it from one retail touch point. And how much retail touch points do we target to increase on a particular year?

Ankit Gupta

Currently, we are catering. We have our active retail base of around 1,60,000 retail outlets whom we are catering. And out of which, 75,000 to 80,000 retailers are in a Lakshya project. And the rest are from the non-Lakshya area. And that is also on the estimate basis because the distributors don't share the actual data with us. In Lakshya area, we have seen that more or less per retailer, they contribute around Rs. 7,000 to Rs. 8,000 per month. So, that is the kind of sales we get from a per touch point basis. Okay. And including the Lakshya and the non-Lakshya, what is the target usually tha

Thank you for this opportunity. So, we have improved our EBITDA margin by 100 basis points for the first half of the year. But if we look at where the improvement is coming from, it's just because lower ad spends, because we have reduced the ad spends by about 100 basis points. So, in future, I mean, improvement EBITDA would be coming from just this, this avenue or are we looking at other optimizations as well?

Ankit Gupta

So, there are some improvements. We can see some improvement on the gross margin also that we saw. It was small, but 0.6% gross margin improvement we have seen in the first half of this fiscal as compared to the last fiscal. Apart from that, we have added our new spinning unit. The spindles that we have added, we have seen positive results coming out of it. So, that benefit we have got in this first half, which was not there last time. A lot of costs will get rationalized as soon as our revenue starts increasing, like the employee benefit expenses, overall other expenses also, which are fixed

Good afternoon, team, and congratulations on a good performance. So, my first question is that given that there has been a merger of nine promoter companies with the listed company, what are the benefits that are expected and what led you to this announcement?

Ajay Patodia

Basically, this merger is announced for the restructuring of our total group and the related party transaction. Mainly, seven to eight companies which are merging is providing office and go- downs to the main Dollar industry. So, once they merge with our main company, then the transaction is eliminated. Other than this, one company, our Dollar Brand Private Limited Holding brand of Dollar, which is also merged at book value only. So, from this Dollar brand, the company is more, the intrinsic value is very much increased. We can use it for new innovation and new purpose also. And other one is h

First of all, congratulations on a good set of numbers. Couple of questions. My first question is, this year the cotton and yarn prices have been subdued. What impact that has had, what positive impact that has had on your numbers, if you can quantify?

Ajay Patodia

So, in this H1, already the yarn prices and cotton prices is stable from April onwards. And as per our prediction, this is stable throughout the year. So, our total cost, total cost for the raw metal is stable. There is nothing much more, any pressure on this. Last year in H1, year-on-year basis, from April to September '24, there is some percentage increase of prices of yarn and cotton prices, but they are stable. So, when you compare H1-to-H1, year-on-year basis, we have some increase in gross margin also. So, some part is due to this stability in the prices of the raw material. Because in d

Thank you for the opportunity. I have couple of questions. Like quick commerce created 4% of total sales in Q2. So, how does its logistic cost structure differ from traditional and e-commerce channels and what is the long-term scale you aim for quick commerce while also ensuring it does not dilute the gross margins?

Ankit Gupta

So, overall, in terms of the costing part, it's almost similar to what we spend in e-commerce. The only thing is that through quick commerce we are able to reach our consumer real, real fast. So, that is the only difference that we have there. In terms of profitability and the discounting structure and everything is similar to what we have in our e-commerce. Okay. And sir, what is the margin difference between traditional and quick commerce or e- commerce? It's almost similar. Okay. And sir, the cash conversion cycle has increased, like have increased from 160 to 167, is it due to receivables

I would like to thank you all for taking the time out to join the Earnings Call. Have a nice day. Thank you so much.

Management

Speaking time

Ankit Gupta

Ajay Patodia

Prashant

Moderator

Gunit Singh

Bhargav

Deepali Kumari

Yash Tawani

Shreya Baheti

Let me begin with the broader environment

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Opening remarks

Shreya Baheti

Hi, good evening, everyone. I would like to welcome the management and thank them for this opportunity. We have with us today Mr. Ankit Gupta – President Marketing, Mr. Gaurav Gupta – Vice-Resident Strategy and Mr. Ajay Patodia, Chief Financial Officer. I would now hand over this call to the management for the opening remarks. Over to you, sir.

Ankit Gupta

Thank you, Shreya. Good evening, everyone and thank you for joining us today. We extend our sincere gratitude to all our shareholders, analysts and stakeholders for your continued trust and support. Your confidence in dollar industries motivates us to stay disciplined, strengthen our governance and focus on long-term value creation. I would also request everyone to take note of the safe harbor statement in our presentation.

Let me begin with the broader environment

Demand in Q2 remains stable, supported by steady consumer sentiment and improving retail offtake across key markets. The overall industry outlook also remains positive, driven by rising disposable income and the expanding footprint of organized retail, e-commerce and quick- commerce channels. This quarter marks a significant strategic milestone with the proposed merger of nine promoter group companies into the listed entity. A key highlight of the restructuring is that dollar brand now comes fully under dollar industries limited, giving us complete ownership of a core asset. By consolidating these assets, we eliminate structural overlaps, strengthen operational control and meaningfully reduce related party transactions. The creation of promoter trust to hold 50% of the promoter stake will ensure continuity, preserve long-term ownership stability and further reinforce governance through an institutionalized framework.

Turning to financial performance

We delivered a strong quarter while operating income grew 5.6% year-on-year to Rs. 471 crores, supported by stable demand across key categories. Operating EBITDA grew at a healthy 23.3% year-on-year to Rs. 603 million, with margins expanding notably by 183 bps to 12.8%, reflecting significant benefits of operating leverage and ongoing cost optimization initiatives. We have been able to curtail our advertisement to 6.2% of operating income in H1FY'26 as compared to 7.2% in H1FY'25 and plan to further reduce this percentage in the coming quarters. Profit after tax stood at Rs. 352 million up 32.7% year-on-year, resulting in a PAT margin of 7.4%. Working capital saw an improvement this quarter. Receivable days reduced to 116, inventory days moderated to 119 after seasonal stocking and payable days increased to 68. As a result, our cash conversion cycle improved to 167 days compared to 173 days in June. Now I would hand over the call to Gaurav Gupta.

Gaurav Gupta

Thank you, Ankit. Let me now highlight some of the key business and operational trends during the quarter. In Q2FY'26, we continue to see steady traction across modern trade, e-commerce and quick-commerce, which together contributed to 10.2% of overall revenue. Quick-commerce, despite operating on a small base, scaled sharply to contribute 4% of the total sales, underscoring its fast-growing relevance in the retail mix. These new-age channels have strengthened our visibility, enabled faster consumer access, and supported our premiumization agenda. Dollar's key product categories continue to show resilient momentum through the quarter. Thermals, our winter essentials portfolio, delivered a standout performance with 23.5% value and 28.1% volume growth year-on-year, supported by early-season demand and wider market reach. Force NXT, our premium innerwear line sustained its growth trajectory with 6% value growth and 19.2% volume growth, reflecting rising consumer preference for high-qualit

Ajay Patodia

Thank you, Gaurav ji. Good afternoon, everyone, and thank you for joining the call. Let me take you through the financial performance for Q2 and H1FY'26. For the quarter our operating income grew by 5.6% year-on-year to Rs. 4,719 million supported by steady demand and better product mix. Gross profit at around Rs. 1,640 million up by 9.6% year-on-year with margin at 34.8%. Operating EBITDA stood at Rs. 603 million, a growth of 23.3% and margin expanded by 183 basis point to 12.8%. As covered by Ankitji earlier, we have also continued to exercise cost discipline. Our advertisement expenses have been curtailed to 6.2% of operating income in H1FY'26 compared to 7.2% in H1FY'25, and we plan to further reduce this proportion in the coming quarter. As communicated earlier, we remain committed to capping advertisement spent at Rs. 80 crores annually, which will drive a further reduction in ad spend as a percentage of revenue. Profit after tax rose 32.7% to Rs. 352 million with PAT margin impr

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