1. Opening Hook
Remember when Iris Clothings was stitching up dreams faster than kids outgrew their clothes? Well, this quarter the fabric of those dreams stretched — a bit too much. Margins slipped while revenues strutted the runway just fine. The management, ever optimistic, blames “product mix and raw material volatility” — the classic Indian textile cocktail. Still, the Doreme brand keeps purring, distributors keep multiplying like warm sweaters in winter, and ERP moved from Tally to SAP (finally!). Stick around — the real fashion show begins with margin makeovers and capacity expansions.
2. At a Glance
- Revenue ₹44.3 crore– Up 7%; not bad, but CFO skipped the drumroll.
- H1 Revenue ₹81.8 crore– Grew 12%; fabric’s selling, profits sweating.
- EBITDA ₹7 crore– Margin down to 15.9%; “growth investments” are the new scapegoat.
- PAT ₹4.1 crore– Up 7%; small win in a tight-fit quarter.
- Distributors 202– Because more hands make lighter margins.
- New Products– Kids’ coord-sets, infant gift sets, and innerwear; the wardrobe’s expanding faster than guidance confidence.
3. Management’s Key Commentary
“We grew 7% YoY and expect a strong winter season ahead.”(Translation: Sweaters will save us. Literally.)
“Margins moderated due to product mix and raw material costs.”(Read: We priced Disney dreams but bought imported fabrics 🧵.)
“We’ve transitioned from Tally to SAP Business One.”(ERP upgrade = new excuses for future delays.)
“Production capacity to reach 38,000 pieces/day soon.”(Because bigger factories mean bigger headaches too.)
“We’re expanding D2C to accelerate growth.”(Or as analysts call it — the standard 2025 buzzword survival tactic.)
“PAT up 7% — stable profitability maintained.”(Stable… if you squint past 400 bps of margin slip 😏.)
“We remain focused on innovation and quality.”(Translation: We’ll make fewer clothes, but fancier ones.)
4. Numbers Decoded
| Metric | Q2FY26 | Q2FY25 | YoY Change | Sarcastic Take |
|---|---|---|---|---|
| Revenue (₹ Mn) | 443 | 414 | +7% | Tailor-made growth, not designer-level yet |
| EBITDA (₹ Mn) | 70 | 81 | -14% | Needle slipped on costs |
| EBITDA Margin | 15.9% | 19.5% | -360 bps | Too much fabric, too little flair |
| PAT (₹ Mn) | 41 | 38 | +7% | Somehow still threading profit |
| H1 Revenue (₹ Mn) | 818 | 729 | +12% | Demand still not unstitched |
| H1 PAT (₹ Mn) | 67 | 62 | +8% | Mild polish, not sparkle |
| Distributors | 202 | 194 | +8 new | More hands, less margin |
| Capacity (pieces/day) | 34,000 → 38,000 | — | Expanding | Stitching faster, not richer |
(Margins may be skinny-fit, but management’s optimism remains XL.)
5. Analyst Questions
Q:“You guided 19-20% margins; now 16%. What happened?”A:“Raw material and product mix.”(Translation: Polyester mood swings.)
Q:“When will margins recover?”A:“Next two quarters.”(We’ll believe it when the thread count rises.)
Q:“Any update on EBOs?”A:“Still exploring models.”(Read: PowerPoints exist; stores don’t yet.)
Q:“Revenue guidance still 50% growth?”A:“Maybe not.”(From bold to bashful in one fiscal.)
Q:“Disney tie-up contribution?”A:“3–4% of revenue, 12% royalty.”(When Mickey takes more than margins.)
6. Guidance & Outlook
Management’s FY26 optimism
