Iris Clothings Ltd (NSE: IRISDOREME) Q1 2026 Earnings Call dated Aug. 11, 2025
Corporate Participants:
Unidentified Speaker
Harshvardhan Sarda — Business Head
Niraj Agarwal — Chief Financial Officer
Analysts:
Unidentified Participant
Deepali Kumari — Analyst
Nisha — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Iris Clothing Limited Q1FY26 earnings conference call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Harshivajan Sarda, business Head. Thank you. And over to you sir.
Harshvardhan Sarda — Business Head
Thank you. Shubham Good afternoon and thank you for joining our earnings call for the first quarter of fiscal year 2526. We appreciate your presence as we review the company’s performance for this period. I’m pleased to report that during Q1 Iris clothing has achieved decent top line growth business outcome of our strategic initiatives which have been meticulously designed and implemented by our dedicated team. We anticipate the forthcoming fall winter season to be a driver for additional growth positioning us to achieve robust results in the forthcoming quarters of FY26. We maintain our confidence in our capacity to drive growth while maintaining our profitability.
Commenting on our operational business, we have seen significant developments particularly in the B2B segment. We have expanded our distributor network by adding eight new distributors during the quarter increasing our total to 194. This expansion is a clear indication of our growing market presence and the trust that our partners place in our brand. Recently we have also successfully raised capital through a rights issue totaling rupees 47.5 crores which will be strategically allocated to to support our growth initiatives. Also, Company has allotted bonus equity share in the ratio of 1:1 to the members of the company on 7th of July 2025.
Now looking ahead to the forthcoming quarters, we plan to expand our production capacity to 38,000 pieces per day. We are excited to introduce our new innerwear line and enhance our sportswear offerings, reinforcing our commitment to innovation and quality. We recently launched a travelware collection which has been very well received by our distributors and we expect it to contribute to our commitment to expansion of product offerings for our customers. We anticipate strong growth driven by organic demand and new capacity additions while also focusing on enhancing our retail D2C segment to accelerate our growth trajectory and create value for our stakeholders.
Iris Clothing remains dedicated to elevating the Doremy brand and advancing the company to the next level of growth. We are grateful for your continued support and look forward to an exciting year ahead. I will now hand over the call to Neeraj Agarwal Our Chief Financial Officer who will walk us through the Q1 FY26 financial numbers. Thank you. And over to you, Neeraj. Good morning everyone. Thank you, Harsh.
Niraj Agarwal — Chief Financial Officer
Thank you all for joining us today. I am pleased to share that we. Have delivered robust performance in Q1FY26. Talking about the key financial highlights for Q1, our total revenue witnessed a remarkable increase of 19% year on year reaching INRIG 37.4 crores up from 31.4 crores in Q1FY25. While our EBITDA for the quarter was 5.3 crores. Additionally, profit after tax for the quarter was 2.6 crores as against 2.4 crores in Q1 FY25 that grew by 8.7% in Q1FY26. To summarize our financial performance, we remain focused on driving operational excellence and executing our strategic initiatives that support long term growth opportunities. With this we can now open the floor for questions.
Thank you.
Questions and Answers:
operator
Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on the Touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Ladies and gentlemen, if you wish to ask a question you may press star and 1. The first question comes from the line of Deepali Kumari from arihant Capital Markets Ltd.
Please go ahead.
Deepali Kumari
Yeah, hello sir. Thank you for the opportunity. So I just wanted to ask what’s your revenue guidance for FY 26 and 27 and like where do we stand on the current CAPEX cycle in terms in terms of commissioning timeline and what incremental assets turns are achievable post stabilization?
Harshvardhan Sarda
Hi Bali, good morning. Thank you for your question. So the Bali revenue remains in line with what we have communicated before. In line with our current growth numbers, we expect revenue to grow at around 50% for this year.
Deepali Kumari
Okay. And Sir, Mike, with recent volatility in input cost and currency. So what’s your breeze to sustain EBIT margin at the current levels?
Harshvardhan Sarda
So we are very confident that by working with our partners and trying to book early in terms of raw material cost and driving efficient sales mechanisms, we are very confident that we’ll maintain EBITDA market at the.
Deepali Kumari
CAPEX for this year. And can you give some outline of new product development and what will you launch this year or after some.
Harshvardhan Sarda
So as already identified that we recently launched a very interesting collection which has been very well received by our distributors. We launched the Travelwear collection similarly. In line with that. We are very eager to enhance our sportswear offering for this unit as well. We did a winter wear collection for sports. We are also looking at adding product categories to our infant wear collection. So overall we are looking at expanding our product categories and our offerings to our end consumers so that they are more connected to the brand at the end.
Deepali Kumari
Okay, like how many EVOL you are targeting for FY26.
Harshvardhan Sarda
That is something that we are still figuring the strategy out. But we are definitely targeting around five to six reviews for this year.
Deepali Kumari
Okay. And like is there any EVO which is breakeven or like profitable?
Harshvardhan Sarda
So for the current years we have two evos which have definitely broken, broken even. Which have been for more than a year. It’s almost been one and a half years. And those two EPOs have broken even for us. And we are confident that going forward we will have a very interesting strategy to work around with our epos.
Deepali Kumari
Okay. Okay. So that’s it for myself. Thank you so much.
Harshvardhan Sarda
Thank you, Deepali.
operator
Thank you. A reminder to all participants, if you wish to ask a question you may press star and 1. A reminder to all participants, if you wish to ask a question, you may press star and 1. The next question comes from the line of Nisha from Stellar amc. Please go ahead.
Nisha
Hi sir. Thanks for the opportunity. So just wanted to ask some question. First question on the previous. So are you looking for the bos? You said five, six for the. For this year. So any new areas or geographies you are looking for, just call KATA for now.
Harshvardhan Sarda
No, for this we are looking at Bombay for now. Because Mumbai being one of our biggest markets for the brand, as of now, we are looking at expanding into Mumbai for our.
Nisha
Okay, and one more time, why are the gross margins being so less so any one time impact also?
Harshvardhan Sarda
So this, this is a one time impact. It was a big sales promotion event that we did and multiple other factors. But we expect our EBITDA margins to remain around the 19 to 20% level.
Nisha
So for Q2 onwards it will be stabilized around 19%.
Harshvardhan Sarda
Yes. Yes.
Nisha
Or we should look it on year. On year basis.
Harshvardhan Sarda
No, I think Q2 onwards will look to stabilize it around 90%.
Nisha
Okay. And one more thing, you said the capital allocations will be for the growth initiatives. So can you please elaborate something on that?
Harshvardhan Sarda
I’m sorry, can you come again? I think I missed your question.
Nisha
You said in the earlier comments that capital Allocation which you raised capital will be towards your growth initiatives.
Deepali Kumari
So.
Nisha
Right, elaborate on that.
Harshvardhan Sarda
So currently we are allocating capital as discussed was primarily to drive working capital, working capital initiatives and just some general corporate purposes to expand our team to expand our new initiatives that we are looking at. For example, EBL is one initiative. Expansion of our product categories is one initiative. So embroidery machines, we are expanding our capex by adding embroidery machines to our postpone. We are adding printing machines to our enhancing production and upgrading our technologies and production effects.
Nisha
Okay. And that 4,000 capacities will be added per day manufacturing. So how much will that cost the.
Harshvardhan Sarda
Capex additional capex would be somewhere around 7 to 8 crores for the new additional.
Nisha
And when will it get operational?
Harshvardhan Sarda
Within this year, within the next few months. Yeah.
Nisha
Okay.
Harshvardhan Sarda
Okay, thank you sir.
Nisha
That’s it from my side. Thank you. All the best.
operator
Thank you. A reminder to all participants, if you wish to ask a question, you may press star and one. Foreign. As there are no further questions from the participants, I now hand the conference over to the management for closing comments. Thank you. And over to you sir.
Harshvardhan Sarda
Thank you once again for your trust in us and for being a part of our journey. We look forward to sharing our successes with you in the next audience call. In case you have any other queries, post this call or anything remains unanswered, you may please connect to our irt.
operator
Sir, we have one question, can we take it? Yes, thank you. The next question comes from the line of Deepari Kumari from Aryan Capital Markets limited. Please go ahead.
Deepali Kumari
Yeah, thank you sir for the opportunity. Again, sir, can you like give a mix between domestic and export revenue and how do you see this evolving over next two to three years?
Harshvardhan Sarda
So currently most of our revenue comes from our domestic segment because that is where our brand is placed at. Having said that, we have some export present. Export is somewhere around 4% for our total revenue and we expect it to grow up to 6,5 to 6% in the next year.
Deepali Kumari
Okay. And like for E commerce, how much you are doing?
Harshvardhan Sarda
So E commerce we are doing a bit first cry. First cry does around 8% of our overall.
Deepali Kumari
Okay. And your own website.
Harshvardhan Sarda
Our own website is something that we are still, you know, trying to strategize on how to go ahead. So there’s not a lot of, not a significant part of the revenue which is coming from our own website. As of now, we have not promoted the website yet.
Deepali Kumari
Okay. And so like how many distributors you have currently and like what is your plan to increase that?
Harshvardhan Sarda
So currently we have around this year for this quarter we have around in 194 distributors and we plan to take that to around 205 distributors by the end of the year.
Deepali Kumari
Okay, so like you are more focused on B2C only?
Harshvardhan Sarda
No, we plan we are very very focused on our B2B market and we want to expand that very very strongly as well.
Deepali Kumari
Okay, and so like what is your targeted working capital cycle for FY26?
Harshvardhan Sarda
So that is something that we are still working around. I think we’ll be able to give you a better answer at the end of next quarter.
Deepali Kumari
Okay, and so like you have said like 38000 of pieces per day and in which how much is the capacity utilization?
Harshvardhan Sarda
We are currently at around 80% capacity utilization.
Deepali Kumari
Okay. And that will be improve on.
Harshvardhan Sarda
I think it will remain somewhere around that number because the from 34 to 38 is just incremental capacity. You’re not doing a big capacity big capex currently which will have some added capacity. So the incremental capacity will be remained at 80 capacity of life.
Deepali Kumari
Like you have like completed one year for your evos for two evo. So like can I know the revenue of that? Like for one year how much revenue you have done?
Harshvardhan Sarda
So for one of the ebols the revenue was around 800 rupees per square feet per month in one area. So that is something that we. That is in line with our expectations. Our expectations is that if our rentals come somewhere around the 25% of our 20 to 25% of our revenue number, our store level EBITDA is very profitable and we aim to improve that.
Deepali Kumari
What is your average selling price?
Niraj Agarwal
As of now our average selling price.
Harshvardhan Sarda
At the MRP level is somewhere around 480 rupees. However, our distributor discounts itself.
Deepali Kumari
For the product breakeven of all the expenses like how much goes to raw materials and how much goes to other expenses.
Harshvardhan Sarda
For product. That is something like di that we have to work and we can share it with you.
Deepali Kumari
Okay. Okay. So so thank you so much.
Harshvardhan Sarda
Thank you.
operator
Thank you. A reminder to all participants, if you wish to ask a question, you may press star and 1. As there are no further questions from the participants I now hand the conference over to management for closing comments. Thank you. And over to you sir.
Harshvardhan Sarda
Thank you. Thank you. Thank you once again for your trust in us and for being a part of our journey. We look forward to sharing our successes with you in the next earnings call. In case you have any other queries, post this call or anything remains unanswered. You may please connect to our IR team. Thank you.
operator
Thank you. On behalf of Iris Clothing Ltd. That concludes this conference. Thank you for joining us. And you may now disconnect your lines. Thank you.