Cost of Capital and Capital Structure of Page Industries Ltd.: A Five-Year Analysis

Cost of Capital and Capital Structure for Page Industries Limited were computed through the analysis of data of past five years. Revenue rose from ₹38,865 million for FY2021-22 to ₹52,468 million for FY2025-26. During the same period, PAT has gone up from ₹5,365 million to ₹7,638 million. This shows that there has been an improvement in overall profitability and financial performance. Moreover, the firm’s dependence on traditional sources of debt has been quite low. [10, 20, 21] For the year 2025-26, CAPM approach yielded cost of equity as 11.65%. Market Value Equity amounted to approximately ₹35,441 crore and debt was ₹277 crore. Estimated WACC turned out to be about 11.56% and remained more or less constant as the proportion of debt in total market-value capital was less than 1%. It shows that the capital structure of the firm has been equity-dominated. [4, 9, 10, 15, 16, 23] In addition to the above, the analysis indicates that the firm has been able to retain its equity and generate profits in a manner that is adequate to support its operations and investments. The firm needs to be vigilant in determining the cost-benefit ratio for various sources of finance especially those involving leasing and other interest payments in making future investment plans. [10, 20, 21] Generally speaking, the capital structure of Page Industries has been flexible and one that is highly dependent on equity. The firm's future capital budgeting should aim at investing effectively, managing risk and efficiently using its operating cash flow. Proper balance between profitability, investments, financial flexibility and cost of capital will enable the firm to grow sustainably. [10, 20, 21]

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