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Safari Industries (India) saw its share price climb approximately 5% on Thursday, reaching an intraday peak of ₹1,498.80 on the National Stock Exchange (NSE). This surge follows the company's announcement of solid volume expansion and earnings that met expectations for the January-March quarter of fiscal year 2026 (Q4FY26).
Q4 Performance Boosts Sentiment
The luggage and accessories manufacturer reported a net profit of ₹37.5 crore for the March quarter, nearly flat year-on-year compared to ₹37.6 crore in the previous fiscal. However, revenue from operations climbed a healthy 12.4% year-on-year to ₹473.3 crore, up from ₹421 crore in the same period last year. Earnings before interest, tax, depreciation, and amortisation (Ebitda) edged up 2.3% to ₹62 crore, though Ebitda margins saw a slight contraction to 13% from 14.3% a year prior. The board has recommended a final dividend of ₹2 per equity share for FY26.
Brokerages Bullish Despite Challenges
PL Capital has upgraded Safari Industries to a 'Buy' rating, setting a target price of ₹1,953. The firm anticipates margin recovery, citing strong gross margins of 49.3% in Q4, supported by benefits from backward integration and improved channel discipline. While acknowledging potential near-term margin pressure from raw material inflation, PL Capital believes this is temporary, with price hikes and captive manufacturing poised to drive future gains.
Motilal Oswal Financial Services (MOFSL) also maintains a 'Buy' rating, with a DCF-based target price of ₹2,250. MOFSL expects Safari Industries to lead industry growth and capture market share through brand strengthening, capacity expansion, new product launches, and a consistent increase in exclusive brand outlets. However, MOFSL noted that rising competition from established players like VIP Industries and Samsonite, alongside growing direct-to-consumer brands, could pose challenges to growth momentum.