Iris Clothings Ltd (NSE: IRISDOREME) Q3 2026 Earnings Call dated Feb. 03, 2026
Corporate Participants:
Harshvardhan Sarda — Business Head
Niraj Agarwal — Chief Financial Officer
Analysts:
Nish Shah — Analyst
Kunjal Agarwal — Analyst
Disha — Analyst
Deepak Karwa — Analyst
Presentation:
operator
Ladies and Gentlemen, good day and welcome to Iris Clothing Limited Q3FY26 earning conference call. As a reminder, all participants 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 the 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. Harshvardhan Sarda. Thank you and over to you.
Harshvardhan Sarda — Business Head
Thank you and good morning everyone. I’m Harshvardhan Sarda and I would like to welcome you all to our Q3 FY 2020 earnings call. Quickly on Financials during the quarter we reported a revenue growth of 46% year on year driven by production, product and distribution enhancements. We expect these two factors coupled with strong demand for spring summer 2026 to drive our growth in Q4 and expect that to be the best quarter for our company in this financial year. Neera Jagarwal, our CFO will take you through the detailed numbers in the later part of the call. Commenting on our operational business in the past quarter we have seen significant developments particularly in the B2B segment.
We have expanded our distributor network by adding 8 new distributors during the quarter, increasing our total to 208. This expansion is a clear indication of our growing market presence and the trust that our partners place in our brands. In the last quarter we expanded our office space to allow ourselves to strengthen our team to drive growth going forward as well. In our quest for product excellence and innovation, we set up a state of the art embroidery unit which will help to enhance our product portfolio and drive additional value going forward. We also held our annual dealer conference in the month of December for the upcoming Spring summer season and have a very strong growth outlook for the next quarter.
Looking ahead to the forthcoming quarter, we plan to expand our production capacity to 40,000 pieces per day and are very excited to introduce a whole new product range in newborn gift sets along with woven nightwear and quartz sets, reinforcing our commitment to product innovation and quality. 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. The new EU FTA deal and the new India US Trade deal also allows us to explore long term opportunities for our manufacturing capabilities.
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 Neera Jagarwal, our Chief Financial Officer who will walk us through the Q3FY26 financial numbers. Thank you. And over to you, Neeraj.
Niraj Agarwal — Chief Financial Officer
Good morning everyone and thank you. Harsh. Let me briefly walk you through our financial performance for the quarter. Third of FY26 and for nine months ended FY26. During the quarter, our total income grew by 46% year on year reaching 487 million compared to 334 million in the same quarter last year. For the nine month period, total income stood at 1.305 million compared to 1,063 million in the corresponding period last year. This reflects healthy demand and improved scale of operations. Our EBITDA for QC FY26 stood at 60.5 million while for the nine months in it FY26 EBITDA was 184 million.
Profit after tax for Q3 FY26 increased to 30.1 million compared to 23.74 million in the same period last year. For the nine months period, PAT rose to 97.6 million up from 86.4 million indicating sustained bottom line. Growth pack margin stood at 6% for Q3FY26 and 7% for nine months ended FY26. In conclusion, FY26 has been marked by strong revenue growth. We remain focused on operational efficiency while balancing growth as we move into the final quarter of the financial year. With this, we now open the floor for questions. Thank you.
Questions and Answers:
operator
Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press STAR and one on their Touchstone telephone. If you wish to remove yourself from the question queue, you may press STAR in two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Nisha from Stellar amc. Please go ahead.
Nish Shah
Hi sir. Good morning. Thanks for the opportunity and congratulations on good set of numbers. My first question is if we see a past trend, our Q3 numbers, revenue numbers have always been on the lower side. So what has worked differently for us this time?
Harshvardhan Sarda
This time. So Winters was much stronger than what it was in the last couple years primarily because the weather played good in our favor. And along with that we had a very interesting product range for winter. So that was one of the biggest drivers for growth in this quarter.
Nish Shah
So I’m going forward for Q4. Can we expect much better numbers as.
Harshvardhan Sarda
Q4 is our best quarter, strongest quarter going forward. Q4 usually historically is also very strong for us because summer season and we from the dealer conferences and the kind of bookings we are doing, we expect it to be a very strong quarter going forward.
Nish Shah
Okay. And so secondly on the margins front margins have dropped so much from about 6 odd percent. So why it is so.
Harshvardhan Sarda
So margins are primarily because a couple things. One, we introduced a lot of new winterware products this year which drove a lot of revenue for us. And along with that we have introduced a few new product lines like woven quad sets and woven night suits which we are outsourcing from outside and not manufacturing directly. So that is where a decent hit on margins is coming from. Apart from that, we also did like a very big conference for our sales team, for our distributor, distributors for our retailers as well to educate the customers about the new product range that we are doing.
So that overall has been the hit on the EBITDA months.
Nish Shah
So that would be a one time impact. Right. And.
Harshvardhan Sarda
Yes, this year we expect it to this quarter we expect it to bounce back quite well.
Nish Shah
Okay, so that’s why then the other reason why other expenses have also gone up.
Harshvardhan Sarda
Exactly, exactly. That is.
Nish Shah
So going forward, Q4 onwards, can we expect margins to stabilize around 18 19% which we have been guiding over the last few quarters?
Harshvardhan Sarda
Yes, we are, we are on track to achieve.
Niraj Agarwal
Okay, so also on the EBO said, how are EBOs performing?
Harshvardhan Sarda
So the seven EBOs that we have opened in the last year, all seven are quite decently stable now. And I think both are, all seven are growing going forward. We expect to add a few new stores in the upcoming quarters and explore another area of the country rather than just focusing on the east.
Nish Shah
And all the EBOs have done profitable or are still to break in?
Harshvardhan Sarda
Yes, all our EBOs have turned profitable and broken even.
Nish Shah
Okay, so generally what is the timeline we target, we have set for EBO to what is the period we can.
Harshvardhan Sarda
So I think for an EBO to like eventually turn break even would be around. We are targeting 16, 15 to 16 months for an EBO to turn break even for us.
Nish Shah
Okay. And we have been guiding to add five to six EVOs by the March 26. So we’re still on with that number.
Harshvardhan Sarda
Or I think there will be a few changes in that number. It might be delayed by a quarter but so we want to set strong foothold in newer regions and hence accumulating the team for that.
Nish Shah
So which new regions are you Targeting.
Harshvardhan Sarda
Currently we are targeting cities like Hyderabad, Bangalore, Chennai. These are three cities which we are primarily targeting to open stores.
Nish Shah
Okay.
Harshvardhan Sarda
Yeah.
Nish Shah
One more things just on if you can. We have as you mentioned in the press release that you have been entering second of a manufacturing facility before Android. So given I code the scans lies in manufacturing of apparels and everything. So where does embryo is in the entire value chain.
Harshvardhan Sarda
So embroidery comes in the value chain of the apparel. Since we are launching infant wear products and expanding that category, embroidery is a very interesting value add to the kind of products that we do. So that was one piece which was missing from our entire puzzle. And now that that has been completed, we are a fully integrated garment manufacturing unit with all capabilities possible.
Nish Shah
Okay. Thank you sir. I’ll join by the queue.
Harshvardhan Sarda
Thank you.
operator
Thank you. The next question comes from the line of Kunjal Agarwal from Arian Capital. Please go ahead.
Kunjal Agarwal
Thank you so much.
operator
Your voice, we cannot hear you. There is a lot of breakdown.
Kunjal Agarwal
Can you hear?
operator
No, not. It’s not proper. Your voice is getting crap now. Yes, you can proceed and we’ll let you know.
Kunjal Agarwal
Okay. So. Daily capacity increased to 30 from 34 into 40.
operator
Miss Kunjal, we cannot. We cannot understand your question properly because of the network connectivity. Maybe from your end.
Kunjal Agarwal
Just a second.
operator
You can do. You can join back the queue if you want.
Kunjal Agarwal
That’s okay. Yes.
operator
Yes. The next question comes from the line of Disha from Sapphire Capital. Please go ahead.
Disha
Hello?
operator
Yes. Yes, Disha. Please proceed with your quesiton
Disha
you are.
operator
Yeah.
Disha
Okay. So sir, you guided that we’re planning to open five, six stores. But that will be delayed by I think one quarter. Right?
Harshvardhan Sarda
Yes. Yes, absolutely.
Disha
Yeah. So what’s. What’s the capex for store on average.
Harshvardhan Sarda
So on average our Capex per store is around 2,500 rupees per square feet. And since we are targeting around thousand square feet stores it will be around 25 lakhs just for the kit.
Disha
Okay. That’s. That’s the average that we take. Okay. And how long does it take like us, our store to like mature?
Harshvardhan Sarda
So we expect a period of 12 to 15 months for the store to mature. And usually the store breaks even at the 15 to 16 month period.
Disha
Okay. Okay. All right. And how many evos are we planning for? FY27.
Harshvardhan Sarda
FY27. We are planning around about 15 to 20 years.
Disha
And these will all be. If you would just give up the geographical split, that will be really helpful.
Harshvardhan Sarda
We are primarily targeting these three cities as you mentioned. Hyderabad, Bangalore and Japan. And Bombay is something that we are also exploring. Along with that. So these are the four cities that you’re primarily. Whatever we want, we want to open in a very cluster based approach and not have a very scattered approach to.
Disha
EBO and all these geographies. Also we target the similar timeline for break even and for maturing.
Harshvardhan Sarda
Yes.
Disha
Okay. Okay. And I think you mentioned, yeah, I think our margins were around 12% also this quarter. You mentioned that they’ll return to 18 to 19%. So although there was one one off because of the conference that we held. But other than that, what are some of the margin drivers that will help us get back to the 18, 19% levels?
Harshvardhan Sarda
Margin driver will primarily be our production, our manufacturing and the kind of raw materials that we purchase. So eventually that is where the profit margins needs to remain. So we expect it to bounce back to around 18% in this quarter.
Disha
Okay. And for the retail D2C segment, how are we planning to scale that up and how what the margin differential that you could share.
Harshvardhan Sarda
So for retail, along with retail, we are also planning to enhance our D2C own website as well this quarter onwards. And we expect a lot of, you know, we spend decently on ads and get the brand built online as well. So we expect to spend some time on the D2C own website segment along with the Evo retail segment.
Disha
And how do the margins differ?
Harshvardhan Sarda
So margins we expect, of course we expect margins to take a hit, but we would want to see how it progresses over the next couple quarters and then we’ll be able to comment more on the margin front of that.
Disha
And any sort of orders per day we’re targeting from the retail segment.
Harshvardhan Sarda
So from the retail segment, we are targeting around thousand orders per day by the end of the year.
Disha
Next year by FY27. Like by the end of FY20?
Harshvardhan Sarda
Yes.
Disha
Okay. Okay. All right, that’s it. From my side, I’ll join Madbachi. Thank you.
Harshvardhan Sarda
Thank you.
operator
Thank you. A reminder to all the participants that you may press star and one to ask a question. The next question comes from the line of Deepak Karva, an individual investor. Please go ahead.
Deepak Karwa
Hello.
Harshvardhan Sarda
Hi, Deepak.
Deepak Karwa
Hi. Good morning, sir. Congratulations for a good set of numbers. Thank you. I want to know, can you provide some light on how do we see infant wear, swim and inner wear adding to overall revenue mix going forward?
Harshvardhan Sarda
So, Deepak, we expect infant wear to be a big contributor. Currently it is around 12% of our overall revenue. We expect it over the next couple years to become almost 20% of the total revenue for us. And as for swimwear, and innerwear that would be. So since it’s a niche product it’ll be a high margin product but the overall mix would be around about 5%.
Deepak Karwa
Okay, given the current market situation, what revenue growth can we expect for FY27 28 and also if you can give some color on the margins of FY27 28.
Harshvardhan Sarda
So margins we would expect it to remain somewhere around the 18, 19% EBITDA numbers. And in terms of revenue growth we expect high growth around about 40% is something that we are targeting for the next year.
Deepak Karwa
And like some more detail on your digital platform, how will that initiate drive overall growth?
Harshvardhan Sarda
So digital platform is something that we are just re exploring and re enhancing our entire website experience, our social media experience. The idea is to build the brand very, very strongly online because that is one of the strongest assets in this world that we live in to build the brand and which will eventually impact the overall business as well because that reminds that basically gives customer visibility of the brand across platforms. So that is the idea in building the digital presence initially.
Deepak Karwa
Okay, like I got my answer. Thank you so much and all the best for your future. Thank you.
Harshvardhan Sarda
Thank you. Thank you Deepak.
operator
Thank you. The next question comes from the line of Kunjal Agarwal from Aryan Capital. Please go ahead.
Kunjal Agarwal
Hello, is my voice clear now?
Harshvardhan Sarda
Yes.
Kunjal Agarwal
Okay, thank you so much sir. So like can we discuss about what is like your guidance towards FY27 and the coming FY26 like the fourth quarter.
Harshvardhan Sarda
So we expect, as I already said, we expect quarter four to be our strongest quarter for this year. And going forward over the next year we are expecting very good growth. A robust growth of around about 40 to 45% is something that we are expecting over the next year. That is the overall guidance.
Kunjal Agarwal
Okay. And do we expect to reach like EBITDA margin to return to the historical level of 16 to 18% anytime soon?
Harshvardhan Sarda
Yes, absolutely. We expect that to reach in this quarter itself.
Kunjal Agarwal
Okay. And so like Twidware is a very highly competitive segment. So how is Iris differentiating its products like branding, pricing and product innovation to maintain the market share.
Harshvardhan Sarda
So it has always been very, very competitive. And that is where our product quality has always been the biggest driver for us to differentiate ourselves because of our in house manufacturing capabilities. It enhances the product quality overall and helps us to give value to the customer at a very good price. So that overall is our biggest mode to win in a very very competitive market that we are operating.
Kunjal Agarwal
Okay. And so like this 10 crore capex with this 10 crore capex. The daily capacity has increased like from 34,000 to 10,40,000 pieces. So what is the current utilization level in this operating and how quickly can this new capacity be absorbed?
Harshvardhan Sarda
So current utilization, last quarter we did around 28,000 pieces per day. But we expect in this quarter to achieve somewhere in the 32 to 34,000 pieces.
Kunjal Agarwal
Okay. And so from this digital platform, what kind of revenue contribution we are targeting?
Harshvardhan Sarda
Kunjal, I’m sorry, I missed your question.
Kunjal Agarwal
With the digital platform that we have, you know, launched. So what is the revenue contribution that we are targeting? Marketing. From the online channel.
Harshvardhan Sarda
So from the overall online channel including Marketplace and our website, we expect around 10 contribution in the next month.
Kunjal Agarwal
In the next month. And sir, Financial. Okay, okay. So that would be my question. So thank you so much.
Harshvardhan Sarda
Thank you. Thank you.
operator
Thank you. A reminder to all the participants that you may press star N1 to ask a question. Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to Mr. Harshvardan Serda for closing remarks.
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 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 so much.
operator
Thank you. On behalf of Irish Clothing Ltd. That concludes this conference. Thank you for joining us. And you may now disconnect your lines. It.