Brands
Safari Industries Q1 revenue climbs 12 per cent as profit softens
Consolidated revenue rises to Rs 589 crore but higher costs trim net profit 5 per cent in June quarter
MUMBAI: Bags were packed, tills kept ringing, but profits travelled a little lighter. Safari Industries began FY27 with double-digit revenue growth as demand for luggage remained healthy, although rising costs weighed on the company’s bottom line during the June quarter.
The luggage maker reported consolidated revenue from operations of Rs 588.6 crore for the quarter ended 30 June 2026, up 11.5 per cent from Rs 527.8 crore in the corresponding quarter last year. Including other income of Rs 7.2 crore, total income stood at Rs 595.8 crore, compared with Rs 533.6 crore a year earlier.
Despite the higher sales, net profit declined 5.4 per cent to Rs 47.8 crore from Rs 50.5 crore in the year-ago period, reflecting increased input and operating costs. Profit before tax fell to Rs 61.1 crore, compared with Rs 65.4 crore in the corresponding quarter last year.
The company’s cost base expanded alongside revenue. Cost of materials consumed rose sharply to Rs 201.1 crore from Rs 151.3 crore, while employee benefit expenses increased to Rs 37.7 crore from Rs 31.3 crore. Other expenses climbed to Rs 149.1 crore, compared with Rs 131 crore a year earlier, taking total expenses to Rs 534.7 crore, up from Rs 468.2 crore in the corresponding quarter.
Finance costs remained largely stable at Rs 2.5 crore, while depreciation and amortisation expenses increased to Rs 19 crore from Rs 17.4 crore.
On the tax front, the company reported a tax expense of Rs 13.3 crore, compared with Rs 15 crore in the year-ago quarter.
Safari posted earnings per share of Rs 9.75, down from Rs 10.33 in the corresponding quarter last year.
The performance suggests that while India’s travel and tourism momentum continues to support demand for luggage, rising material and operating costs remain a challenge. With revenue nearing the Rs 600 crore mark in the quarter, Safari enters the rest of FY27 with strong sales momentum, but profitability will depend on how effectively it manages inflationary pressures while sustaining growth.
