Lux Industries Ltd Q2FY26: From Salman Khan Endorsements to Margin Gymnastics – The ₹779 Cr Quarter That Looked Fit but Felt Tired

1.At a Glance

Picture this: the company that told India “Yeh andar ki baat hai” is now having a few inner battles of its own. Lux Industries Ltd — India’s largest mid-segment hosiery and innerwear powerhouse — just reported Q2FY26 (Sep 2025) numbers that feel like a tight vest two sizes small. Revenue stood at ₹779 crore, up 16% YoY, but profit after tax slipped sharply by 53% to ₹23.8 crore. That’s not a fall — that’s aluxurious nosedive.

At ₹1,243 per share and a market cap of ₹3,738 crore, the stock has been as elastic as its product line — stretching down 36% over the past year. ROE of 9.8% and ROCE of 12.5% remind us that even innerwear veterans need a little moresupport.

Debt ballooned to ₹518 crore, giving it a debt-to-equity ratio of 0.29 — not scary, but enough to make an investor adjust their waistband. With an EV/EBITDA multiple of 18.6x, Lux feels like that fancy vest at a premium price that still fades after a few washes.

But let’s not lose our threads just yet — after all, this is a ₹2,756 crore revenue brand with 15% market share in India’s organized hosiery sector. Time to peek under the hood (or shirt, rather).

2.Introduction – The Elastic Empire

Lux Industries has spent decades convincing Indian men that comfort begins beneath the kurta. From the iconicLux Cozito the millennial-flavoredONN, this Kolkata-based company has wrapped itself around 2 lakh+ retail stores across the country.

But FY25-26 has been a different kind of runway — one where the numbers seem to have tripped over their own drawstrings. Despite expanding categories (rainwear, lingerie) and rolling out solar plants to look greener than their “Venus” leggings, Lux’s profit margins are now doing yoga — stretching, bending, and occasionally collapsing.

Sales rose a healthy 16% YoY, but PAT dropped 53%. The company has been pouring money into brand endorsements like a Bollywood producer on an ego trip — ₹900 crore spent in seven years. Salman Khan flexes vests, Janhvi Kapoor twirls in lycra, and Sourav Ganguly keeps it “off the field” — yet EPS has fallen to ₹7.93 this quarter, down from ₹16.87 a year ago.

Can a company keep spending 8% of revenue on marketing when profits are shrinking faster than a cheap T-shirt in hot water?

3.Business Model – WTF Do They Even Do?

Let’s be real — Lux Industries doesn’t make rocket engines. It makesundergarments— the most essential, invisible, yet competitive category in the Indian consumer space. The business model is simple: manufacture and market innerwear, thermals, and casual wear under multiple brands catering to different price points and genders.

• Flagship brand: Lux Cozi — the mass-market macho icon that made Salman Khan flex on every TV channel.
• Premium play: ONN and Lux Premium — for people who prefer their briefs with a dash of “brand aura.”
• Women’s wear: Lyra and Lux Venus — stylish, comfortable, and frequently endorsed by actresses who probably never actually wear them in real life.
• New categories: Rainwear (Lux Venus Rainwear) and lingerie (Lux Venus Her).

They sell through a1,170+ dealer network, present in over2 lakh retail stores, 15 exclusive outlets, and e-commerce platforms like Amazon, Myntra, and AJIO. Lux also exports to46+ countries— from Saudi Arabia to South Africa.

Their newstate-of-the-art plant in West Bengal Hosiery Parkboosts capacity by 24 crore pieces annually. The company even installed1.7 MW solar powerto save on electricity — because sustainability is sexy now.

So yes, Lux manufactures comfort. But lately, it seems to have lost some comfort in its balance sheet.

4.Financials Overview

Commentary:Revenue growth looks like it hit the gym, but profits clearly skipped leg day. EBITDA margins at ~6% are down