1. Opening Hook
Europe is broke, GST played musical chairs, and yet Mallcom decided Q3 was the perfect time to show off its margin biceps. While global PPE demand sulked in a corner blaming geopolitics, Mallcom quietly shipped more safety shoes, smiled at a weaker rupee, and told exporters to “wait it out.”
The call felt like a mix of confidence and cautious optimism—new plants are ready, depreciation is already hitting, and management insists the worst is “behind us” (investor favourite phrase, use with salt). Domestic demand is doing the heavy lifting, exports are in therapy, and Sanand is still warming up the engines.
Read on, because beneath the calm tone lies a company betting hard on value-added products, policy tailwinds, and the hope that Europe remembers how to spend money again.
2. At a Glance
- Revenue up 11.5% YoY – Respectable growth, considering Europe was on a shopping diet.
- EBITDA up 27% YoY – Margin expansion finally showed up, fashionably late.
- EBITDA margin at 14.7% – Back in the comfort zone, like FY23 never left.
- PAT up 13% YoY – Profits grew, but depreciation kept the champagne corked.
- Domestic growth ~20% – India carried the quarter on its shoulders.
- Exports sluggish – China+1 took a tea break instead of showing up.
3. Management’s Key Commentary
“We are pleased to report a strong improvement in profitability.”
(Margins behaved after last quarter’s tantrum 😏)
“Both Sanand and Chandipur facilities are now
fully operational.”
(Machines are ready, volumes are still stretching)
“Domestic sales have grown faster than exports.”
(Europe is sulking, India is shopping)
“GST rate rationalization improved affordability.”
(Taxman accidentally helped demand)
“We are moving towards value-added products.”
(Less commodity pain, more margin joy)
“We believe the worst is behind us.”
(Classic management optimism—mark this line)
“Export markets like Europe and North America are slow.”
(No one wants to experiment when wallets are thin)
“Branded vs white-label is nearing 50:50.”
(Brand building is finally paying rent)
4. Numbers Decoded
| Metric | Q3 FY26 | YoY Trend | What It Really Means |
|---|---|---|---|
| Revenue | ₹131 Cr | +11.5% | Growth survived global slowdown |
| EBITDA | ₹19 Cr | +27% | Mix + FX + stability did the trick |
| EBITDA Margin | 14.7% | +100 bps | Back to historical comfort |
| PAT | ₹10 Cr | +13% | Capex costs still nibbling |
| 9M Revenue | ₹393 Cr | +13% | Domestic offset exports |
| Export Order Book | ₹80–85 Cr | ~4 months | Visibility exists, not exciting |
Translation:
This quarter worked because raw materials behaved, shoes sold well, and FX helped. Not magic—execution.
5. Analyst Questions
- Why exports weak despite being small?
→ Management: Size doesn’t matter
