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
