Synopsis: Lux Industries signed a licensing agreement with RILUK IPCO to exclusively manufacture and sell REEBOK innerwear and thermal wear in India, supporting future business growth.
This Small-cap Textile Stock, engaged in the manufacturing, marketing, and distribution of hosiery, innerwear, loungewear, and apparel products through well-known brands across India and international markets, jumped 9.64 percent after signing a Brand Licensing Agreement (BLA) with RILUK IPCO to use the REEBOK brand in India.
With a market capitalization of Rs. 3,911.12 crores, the share of Lux Industries Limited has reached an intraday high of Rs. 1,340 per equity share, rising nearly 9.64 percent from its previous day’s close price of Rs. 1,222.20. Since then, the stock has retreated and is currently trading at Rs. 1,300.60 per equity share.
Reason Behind the Surge
Lux Industries Limited has signed a Brand Licensing Agreement (BLA) with RILUK IPCO Limited to use the REEBOK brand in India. Under this agreement, the company’s Vertical B will have the exclusive right to design, manufacture, and sell men’s and women’s innerwear and thermal wear products using the REEBOK brand. This agreement is part of the company’s regular business activities.
The agreement is effective from the current financial year and can be renewed for up to ten years. Lux Industries will manufacture and market REEBOK-branded innerwear and thermal wear exclusively in India. The company believes this partnership will help strengthen its product portfolio and expand its presence in the premium innerwear market.
The agreement does not involve any shareholding, related-party transaction, or changes in the company’s capital structure. The signing of this agreement is expected to support the company’s future growth by leveraging the strong REEBOK brand in the Indian market.
Business Highlights
Lux Industries Limited is one of India’s leading innerwear companies and is the No. 1 player in the Indian innerwear market by volume. The company has built a strong reputation through its wide product range, quality, and large distribution network. It holds around a 15 percent share of the organized men’s innerwear market and maintains a 95 percent fill rate, which is much higher than the industry average of 80 percent.
The company has a manufacturing capacity of more than 34 crore garments across nine modern plants and supplies products through a network of over 2 lakh retailers across India. Lux Industries also exports to more than 46 countries, employs more than 4,500 people, and offers over 5,000 SKUs across more than 100 product categories, including innerwear, outerwear, rainwear, and athleisure wear.
Geographical Presence
Lux Industries Limited has a strong geographical presence across India through its extensive distribution network. The company has over 1,170 dealers, and its products are available in more than 2 lakh multi-brand stores and 15 Exclusive Brand Outlets (EBOs).
To support efficient distribution, the company operates 13 depots and 18 warehouses across 12 states. It also has a dedicated sales force of over 550 sales professionals who help increase product availability and market reach. This wide network enables Lux Industries to serve customers quickly and maintain a strong presence in both urban and rural markets.
Company Overview
Lux Industries Limited is an Indian apparel company specializing in innerwear, hosiery, and everyday apparel for men, women, and children. Based in Kolkata, it traces its heritage to 1957 through Biswanath Hosiery Mills and has grown into one of India’s leading organized innerwear manufacturers with an extensive portfolio of brands and a broad domestic and international distribution network.
Recent Quarter Results
Coming into financial highlights, Lux Industries Limited’s revenue has increased from Rs. 819 crore in Q4 FY25 to Rs. 881 crore in Q4 FY26, which has grown by 7.57 percent. The net profit has decreased by 16.67 percent from Rs. 48 crore in Q4 FY25 to Rs. 40 crore in Q4 FY26.
Lux Industries Limited’s revenue has grown at a CAGR of 9 percent over the last five years. In terms of return ratios, the company’s ROCE and ROE stand at 7.84 percent and 5.90 percent, respectively. Lux Industries Limited has an earnings per share (EPS) of Rs. 33.7, and its debt-to-equity ratio is 0.32x.
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