{"id":173563,"date":"2026-01-22T10:11:02","date_gmt":"2026-01-22T15:11:02","guid":{"rendered":"https:\/\/alphastreet.com\/india\/iris-clothings-ltd-irisdoreme-q3-2025-earnings-call-transcript\/"},"modified":"2026-01-22T10:11:02","modified_gmt":"2026-01-22T15:11:02","slug":"iris-clothings-ltd-irisdoreme-q3-2025-earnings-call-transcript","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/iris-clothings-ltd-irisdoreme-q3-2025-earnings-call-transcript\/","title":{"rendered":"Iris Clothings Ltd (IRISDOREME) Q3 2025 Earnings Call Transcript"},"content":{"rendered":"

Iris Clothings Ltd (NSE: IRISDOREME) Q3 2025 Earnings Call dated Feb. 04, 2025<\/span><\/strong><\/p>\n

Corporate Participants:<\/h2>\n

Abhishek Bhatt<\/strong> \u2014 Investor Relations<\/em><\/p>\n

Harshvardhan Sarda<\/strong> \u2014 Business Head<\/em><\/p>\n

Niraj Agarwal<\/strong> \u2014 Chief Financial Officer<\/em><\/p>\n

Analysts:<\/h2>\n

Midhat Samit<\/strong> \u2014 Analyst<\/em><\/p>\n

Bharat Sharma<\/strong> \u2014 Analyst<\/em><\/p>\n

Navin Kumar<\/strong> \u2014 Analyst<\/em><\/p>\n

Unidentified Participant<\/strong><\/p>\n

Resha Mehta<\/strong> \u2014 Analyst<\/em><\/p>\n

Avinash<\/strong> \u2014 Analyst<\/em><\/p>\n

Akansha Parag<\/strong> \u2014 Analyst<\/em><\/p>\n

Manoj Agarwal<\/strong> \u2014 Analyst<\/em><\/p>\n

Presentation:<\/h2>\n

Operator<\/strong><\/p>\n

Ladies and gentlemen, good day and welcome to Iris Clothings Limited Q3 and Nine Months FY ’25 Earnings Conference Call.<\/p>\n

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 the conference call, please signal an operator by pressing the star then zero on a touchstone phone.<\/p>\n

I now hand the conference over to Mr Abhishek Bhat from ENY, Investor Relations. Thank you, and over to you.<\/p>\n

Abhishek Bhatt<\/strong> \u2014 Investor Relations<\/em><\/p>\n

Thank you. Good morning, everyone. On behalf of Iris Clothing Limited, I welcome you all to the company’s quarter three and Nine-Month FY ’25 earnings conference call. The results and investor presentation are available in our filings with the exchange.<\/p>\n

To discuss the business performance during the quarter and outlook. We have with us today Mr Santosh Ladda, Managing Director; Mr Sarda, Business Head; and Mr Niraj Agarwal, Chief Financial Officer of Iris Clothings Limited.<\/p>\n

Before we proceed with the call, a disclaimer. Please do note that anything said on this call during the course of the interaction and in our collaterals, which reflects the outlook towards the future or which should be interpreted as a certain forward-looking statement must be viewed in conjunction with the risks the company faces and may not be updated from time-to-time. More details are provided at the end-of-the investor presentation and other filings that can be found on our website, www.irisclothings.in. should you have any queries or need any further information at the end of this call, you can reach-out to us at our email addresses mentioned in the company collaterals.<\/p>\n

With that, I would like to hand over the call to Mr Harsh. Thank you. And over to you, sir.<\/p>\n

Harshvardhan Sarda<\/strong> \u2014 Business Head<\/em><\/p>\n

Thank, Abhishek. Good morning, and thank you all for joining us on today’s call to discuss our performance for Q3 FY ’25. I’m grateful for the opportunity to share with you our performance over the past quarter and share our plans for the coming years.<\/p>\n

On the operational performance, during Q3 FY ’25, the company experienced a strong performance relative to the same-period in the previous year. Our B2B segment, which is a major contributor to the overall business has been growing at a good pace. We successfully added four new distributors in Q3 FY ’25, aggregating to a total addition of 13 new distributors during nine months FY ’25. This has expanded our network to over 177 distributors. Our strategic focus has been on deepening our relationships with distributors rather than merely expanding our network in breadth alone.<\/p>\n

On the broader portfolio end, we have continued to increase our focus on the infantwear category and expanded our product range to include infant sets, squad sets, nightwear and fresh designs in the Disney apparel line as well. These new offerings have been carefully crafted to meet our customers’ changing needs and have been positively received in the markets. With these updates to the category, we aim to raise its share from the current 10%.<\/p>\n

After years of dedicated effort to build our brand and create a strong brand recall, we are now advancing towards significant growth by focusing on and expanding our direct-to-consumer segment. In our pursuit to strengthen our D2C presence, we have already made progress by opening five new exclusive brand outlets during the first-nine months of FY ’25, taking our total count of stores to seven. This approach is in-line with our grasp of market trends and our dedication to our strategic expansion plan.<\/p>\n

Looking ahead, Clothings is starting a clear path for expansion in the D2C segment along with the distributor segment. We plan to open around 100 stores in the next few years and are making significant investments in assembling a robust team for our retail division. This will play a crucial role in elevating our brand me to new heights.<\/p>\n

In addition to expanding our retail footprint, we are also continuously updating and diversifying our product portfolio to enhance our merchandise offerings to our consumers. With a solid foundation and a strong brand reputation, we are enthusiastic about the opportunities that live for us. We are confident in our ability to meet and exceed our aspirational targets. We believe that our efforts will continue to be a fruit as we move forward.<\/p>\n

I will now hand over the call to Niraj Agarwal, our Chief Financial Officer, who will walk us through the Q3 and the Nine-Month FY ’25 financial numbers. Thank you and over to you, Niraj.<\/p>\n

Niraj Agarwal<\/strong> \u2014 Chief Financial Officer<\/em><\/p>\n

Thank you, Virj. Thank you all for joining us today. I am pleased to share that we have delivered robust performance in Q3 and nine months FY ’25. Talking about the key financial highlights for Q3 FY ’25, our total income witnessed a remarkable increase of 42.1% year-on-year, reaching INR33.4 crores, up from INR23.5 crores in Q3 FY ’24.<\/p>\n

Consolidated income during nine months FY ’25 stood at INR106.2 crores, a significant growth of 33% year-on-year against INR79.8 crores reported in nine months FY ’24. While our EBITDA for the quarter was INR6.1 crores as against INR5.4 crores in Q3 FY ’24 with an EBITDA margin of 18.1%. EBITDA for nine months FY ’25 stood at INR20.1 crores as compared to INR19.3 crores in nine months FY ’24 with an EBITDA margin of 18.9%. Additionally, profit-after-tax for the quarter was INR2.4 crores as against INR2 crores in Q3 FY ’24, a substantial growth of 20% year-on-year. During nine months FY ’25, net profit was INR8.6 crores compared to INR8.7 crores in nine months FY ’24 with a PAT margin of 8.1%.<\/p>\n

To summarize our financial performance, we remained focused in driving operational excellence and capitalize on growth opportunities. With this, we can now open the floor for questions. Thank you.<\/p>\n

Questions and Answers:<\/h2>\n

Operator<\/strong><\/p>\n

Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on your touchstone telephone. If you wish to remove yourself from the question queue, you may press star N2. Participants are requested to use handset 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 Sumit from Sumit Financials. Please go-ahead.<\/p>\n

Midhat Samit<\/strong><\/p>\n

Hi, very good morning to the management team and congratulations on a great set of results. I have a few queries. So first is regarding — see Q3 we see is a seasonally sort of a weak quarter for us. So is there some strategy to launch any festive products or a special dedicated live because Q3 usually for other retailers or consumer footprint is dominated by festival team. So is there any thought on that man?<\/p>\n

Harshvardhan Sarda<\/strong><\/p>\n

Hi, Sumit. Thank you for the question. So I understand what you mean that we should launch the festive wealth collection. But so I’ll — one of the major reasons for Q3 being slightly weaker is because of the seasonal change. So all the winterwear products, which usually sells at a retailer’s set during the months of November, December, January, say, our since our major sales are to distributors, our distributors buy it from us by September because that is when they forward it to retailers. So as we move towards D2C a little more, our Q3 will start becoming stronger for us in the longer-term.<\/p>\n

Midhat Samit<\/strong><\/p>\n

Okay. So as you are mentioning, we are moving focusing overall linked to see. So is there any number or you know part which has changing any down to strategic target or a three-year five-year reason to reach a certain number of revenue or profitability in the D2C segment?<\/p>\n

Harshvardhan Sarda<\/strong><\/p>\n

Absolutely. We are very, very focused with a very specific plan to grow the entire this as a whole. For D2C specifically, we have set certain targets, which you can find in our investor presentation. We are opening to target roughly around 100 stores over the next few years. Initially and with a larger ambitious plan of over 400 stores in the next five to six years.<\/p>\n

Midhat Samit<\/strong><\/p>\n

Yes, sir. I’ve been through the presentative sir, I’d like to appreciate the presentation and very in-depth on that going-forward. Just one more query I would understand — since we are in a consumer-facing business, especially with kids who have a very-high level of growth compared to or clothing. We must be having a very wide range of SKUs also. I don’t know if you watch the broad of SKU we have.<\/p>\n

Harshvardhan Sarda<\/strong><\/p>\n

So we have the entire range of SKUs for cater basically to cater to kids from the age of zero to 16 with multiple categories inside. So if I have to give a rough number on the number of SKUs, we would be somewhere around 1,000 SKUs for the whole year.<\/p>\n

Midhat Samit<\/strong><\/p>\n

Okay. And roughly what is the inventory days we maintain on that one?<\/p>\n

Harshvardhan Sarda<\/strong><\/p>\n

So overall working capital days that we will be maintaining by the end of this year would be around 190 days.<\/p>\n

Midhat Samit<\/strong><\/p>\n

Okay, great. This is very informational and insightful. Thank you so much. If there’s any other queries, I will come back-in the queue.<\/p>\n

Harshvardhan Sarda<\/strong><\/p>\n

Thank you. Pleasure.<\/p>\n

Operator<\/strong><\/p>\n

The next question is from the line of Bharat Sharma from Equirus Capital. Please go-ahead.<\/p>\n

Bharat Sharma<\/strong><\/p>\n

Hello, good morning, everyone. So my question is on the brand outlets. The company is planning to open new brand outlets in-quarter four. So have we secured any location for these new outlets? And where will be the company’s a focus on opening on these, whether in the Eastern region or are we looking to expand in Mumbai?<\/p>\n

Harshvardhan Sarda<\/strong><\/p>\n

Also, the next set of outlets that we are planning is primarily in four cities of the South. So primarily Bangalore, Chennai, Hyderabad and Bombay along with Calcutta. These are the five cities that we want to open or the first few set of outlets for our company.<\/p>\n

Bharat Sharma<\/strong><\/p>\n

Yeah, okay. So thank you. I will come back with the next question for the follow-up questions. Thank you.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. Before taking the next question, we would like to remind participants that you may press star and 1 to ask a question. The next question is from the line of Navin Kumar, an Individual Investor. Please go-ahead.<\/p>\n

Navin Kumar<\/strong><\/p>\n

Yeah, thank you for the opportunity. So my first question is, are there any plans for direct online sales for the customers to align with other players in the retail industry.<\/p>\n

Harshvardhan Sarda<\/strong><\/p>\n

So if we talk about it, we are already present on marketplace like First Cry. We have a very strong presence on first cry already and we have our own D2C channel, which we launched a year-ago. We are not really expanding the D2C channel right now by spending aggressively on advertising there. But we are figuring out a stronger strategy to launch the D2C very, very strongly. So I think over the next few years — few quarters, you will find some results on that segment. But we have a very strong presence already online on marketplaces like Firstcraft.<\/p>\n

Navin Kumar<\/strong><\/p>\n

Okay. Okay. And my second question is, how has been the growth in the newer categories, which we have launched during H1 FY ’25?<\/p>\n

Harshvardhan Sarda<\/strong><\/p>\n

I think we have seen decent growth in the infantwear category, specifically the zero to two-year segment. Since we are adding a few new product categories in that segment every quarter, that is every season actually, that is what is driving a good percentage of growth for us also. I think new product categories overall are being accepted quite well into the market.<\/p>\n

Navin Kumar<\/strong><\/p>\n

Okay. Thank you for the answers. I will join the queue.<\/p>\n

Operator<\/strong><\/p>\n

Participants who wish to ask a question may press star and one. The next question is from the line of Jia Mehta from Asando Capital Markets. Please go-ahead.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Yeah, hi. Hi, team. Thanks for the opportunity. So I have a couple of questions. My first question is how is the demand situation at our EBOs and whether the first two outlets which we opened in Calcura last year. So have they reached back breaking?<\/p>\n

Harshvardhan Sarda<\/strong><\/p>\n

Thank you for your question. Yes, so the first two outlets, we have definitely reached breakeven at an annual level. And we see the demand in the EBO segment growing. But then again, retail is very dependent on season, specifically in the Eastern region because the Durga Puja season is much stronger than the rest of the season. So we are identifying those demand points and trying to play along that. But we are very confident that the demand overall for this segment, especially for our brand will be very strong as we open more stores and have more presence across the places that we are targeting.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Okay. Okay, okay. Thank you so much. My second question is in terms of product development, are we looking to broaden our accessories range or will we continue to concentrate on our core kids we are offerings considering the high pricing nature of XSC.<\/p>\n

Harshvardhan Sarda<\/strong><\/p>\n

We want to continue to focus primarily on the clothing segment because that is where our forte, that is where the brand has been built on. But having said that, we are very, very keen on adding new accessories. So we are adding bags and certain other accessory categories as well because at the EBO level, we lead the entire set for the consumer to have an overall experience at the store with the merchandise. So correctly pointed out, we are definitely adding accessories, but it will not become a major part of our collection. We still want to remain primarily an apparel brand.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Okay. Okay. Thank you so much. Thank you.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. The next question is from the line of Krutika from Assets. Please go-ahead.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Good afternoon. Good morning, sir. Thank you for your question. First question would be on the store addition. So in the previous call, we had indicated that we will be opening 10 videos in the second-half and whereas in this quarter there has been more addition. So what has changed materially in this quarter? So why this change in-store addition that is what I?<\/p>\n

Harshvardhan Sarda<\/strong><\/p>\n

So Q3, thank you for your question. Q3 specifically was a conscious call from our end to not open stores because it is always a change in-season in the regions that we are targeting in. So what we are doing is we will be launching a few stores this quarter or maybe not the 10 number, but then again, we’ll be somewhere around close to that number.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

So around 5 10 this quarter in Q4?<\/p>\n

Harshvardhan Sarda<\/strong><\/p>\n

Yes, yes, I’m sure.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Okay. And the remaining — the target that you have mentioned in the PPT for the next few years remains the same. So there is no change in that.<\/p>\n

Harshvardhan Sarda<\/strong><\/p>\n

Yes, yes. That will remain the same.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Okay, okay. And in terms of your capacity utilization for the nine months, what has been the capacity utilization for the nine months of this year.<\/p>\n

Harshvardhan Sarda<\/strong><\/p>\n

So also capacity utilization, currently, we are somewhere around the 84%, 85% number. So we have an installed capacity of around 33,000 per day and currently, we are using around 28,000 pieces per ton.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Okay, okay. And we had targeted to take it to 37,000 by this year end. So is it expected to take place in Q4 or will that now go in FY ’25?<\/p>\n

Harshvardhan Sarda<\/strong><\/p>\n

Q4 will slightly enhance it may be to up till 35,000 pieces per day but yeah, major expansion will come over the next year.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Okay, so by FY ’26, 10, how much is it that we are targeting?<\/p>\n

Harshvardhan Sarda<\/strong><\/p>\n

So with the current apart from a greenfield expansion that we are planning later, we will take this capacity to around 38,000 to 40,000 pieces.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

38 by we can say it by 26 ’26 end.<\/p>\n

Harshvardhan Sarda<\/strong><\/p>\n

Yeah, March ’26 is what I’m talking about.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Yeah, right, right. And the next year for FY ’27, we are further adding I think some capacity, right? So by FY ’27 and what would be our capacity?<\/p>\n

Harshvardhan Sarda<\/strong><\/p>\n

Before FY ’27, we are planning a greenfield expansion at the factory level as well. So I think that will enhance the capacity quite a bit. But then again, that’s something which is still in the works. We’ll let you know as we have more information.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

All right, all right. And just one clarification, which are the five cities that you mentioned for the EBO expansion<\/p>\n

Harshvardhan Sarda<\/strong><\/p>\n

Slso primarily Bangalore, Hyderabad, Chennai and Bombay and Calcutta.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Okay, these are the questions from my side. Thank you.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. Ladies and gentlemen, if you wish to ask a question from the management, you may press star and 1 one. The next question is a follow-up question. It’s from the line of Sumit from Sumit Financial. Please go-ahead.<\/p>\n

Midhat Samit<\/strong><\/p>\n

Yeah, hi. Thanks for the opportunity for this follow-up. The answers on the previous question were also very insightful. I would like to ask a few broad-based questions to the management. So you know, as we are about to roll-out a massive expansion set-in, which involves a lot of storefront, both on the company-owned and franch of model. So what is our major strategy on this front? Because I mentioned you — I heard you mentioned a few cities, but are we keeping in mind you know what are the population growth metrics in those cities and what is the competitive uncertain city in those cities or which brands are already-strong incumbents and what is our right to win in these situations?<\/p>\n

Harshvardhan Sarda<\/strong><\/p>\n

Absolutely. We are very, very focused on that strategy. We have built multiple models on those by doing a competitor analysis in terms of which city. Apart from that, since we have been in the industry for almost 20 years now, we have a lot of insights. We are over — we have presence in over 1,000 retailers in a city like Bombay, in Bangalore, we are presence in over 700 retailers, similarly for Chennai. So since we already have a very strong presence in the retail sectors in these cities, we have insight on what the products are, what the competitors are. So driving all of that, that is how we have come to these five cities. But then again, it is a strategy which will always, you know, it will enhance and it will evolve over-time because it cannot be a fixed strategy. However, being said that, this is what the overall strategy that we have defined from our experiences along with market research that our teams did — that we did ourselves. It is a very well thought-out strategy.<\/p>\n

Midhat Samit<\/strong><\/p>\n

Yes, of course, we have a very rich legacy and a successful track-record. So we are all excited by what comes back. And one more question, if I may. We have recently seen a macro change in the industry given by political circumstance in all of our neighboring countries, a lot of players in the industry have made various commentaries on it and majorly it has been advantages to India. So is there any tailwind from that front?<\/p>\n

Harshvardhan Sarda<\/strong><\/p>\n

So since we are not doing a lot of white-label manufacturing currently, it is not entirely an advantage that we are seeing our company in particular, but we are very, very keen — keenly looking at opportunities as something comes along. We are definitely eager to grab onto those opportunities as well.<\/p>\n

Midhat Samit<\/strong><\/p>\n

Great. Just one last question from my end. Like I understand our margins are usually a mix of product pricing and product mix as well. And our EBITDA margins have been in a broad range of, say, 17% to 23%. If you could just give some guidance or target range as to what is the expectation to — I understand this is all based on some circumstances not in your control. But…<\/p>\n

Harshvardhan Sarda<\/strong><\/p>\n

Absolutely, absolutely point because it’s a varied product mix that we deal with. But then again, having said that, we aspire to be in the range of 19% to 20% for this year specifically for EBITDA.<\/p>\n

Midhat Samit<\/strong><\/p>\n

So could — so could you give us a broader range for…<\/p>\n

Harshvardhan Sarda<\/strong><\/p>\n

Enhances by a couple of basis-points, but not beyond that. I think 22% EBITDA would be a good number — a good aspirational number for us currently.<\/p>\n

Midhat Samit<\/strong><\/p>\n

Okay. So I’m saying over a three-year period, can we envisage a 20% raise that is good.<\/p>\n

Harshvardhan Sarda<\/strong><\/p>\n

Yes, yes, for sure.<\/p>\n

Midhat Samit<\/strong><\/p>\n

This was very helpful. Thanks for your time and all the best.<\/p>\n

Harshvardhan Sarda<\/strong><\/p>\n

Thank you so much.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. The participants who wish to ask a question may press star and one. The next question is from the line of Resha Mehta from Green Edge Wealth. Please go-ahead.<\/p>\n

Resha Mehta<\/strong><\/p>\n

Yeah. Thank you for the opportunity. So firstly, just wanted to understand. So currently, who is our customer segment? Is it the kids like in the zero to five-year age group or beyond? So if you could specify the age group?<\/p>\n

Harshvardhan Sarda<\/strong><\/p>\n

So currently the age group for the kids from two to eight years caters to around 60% of our overall revenue. So which that is the major segment. Infants is around 10% currently, which we are enhancing to around 13% to 15% over the years.<\/p>\n

Resha Mehta<\/strong><\/p>\n

Okay, but I believe we have just launched, right, and that’s already 10% of our revenues?<\/p>\n

Harshvardhan Sarda<\/strong><\/p>\n

Yes, absolutely. That is where the a very good growth. We have launched. It’s been a couple of years since we launched and we have seen significant growth in that.<\/p>\n

Resha Mehta<\/strong><\/p>\n

Sorry, when have we launched infant wears?<\/p>\n

Harshvardhan Sarda<\/strong><\/p>\n

It’s been almost two years, two years back since we launched.<\/p>\n

Resha Mehta<\/strong><\/p>\n

Okay, okay. All right. And would you say that the competition is higher in the infant wear versus the kidswear or would it be the other way around?<\/p>\n

Harshvardhan Sarda<\/strong><\/p>\n

So it is very varied since our competition is very regional currently because the markets that we operate in, there are not a lot of national players who are there across all the geographies that we cater to. So it is slightly different for a city like us Delhi or different for Pombay. So it depends on where I’m competing in. That is where — so a specific competition would not be very advisable from us.<\/p>\n

Resha Mehta<\/strong><\/p>\n

Okay. And I think Samir has mentioned that infant wear has higher margins versus kids wear. So what would be the margin gap between and Kidswear?<\/p>\n

Harshvardhan Sarda<\/strong><\/p>\n

I think it will be around 3% to 4% at the EBITDA level for infant and Kidswear. But then again it depends a lot on the product mix, how the product mix comes up.<\/p>\n

Resha Mehta<\/strong><\/p>\n

Okay, okay. You said at the EBITDA level, right?<\/p>\n

Harshvardhan Sarda<\/strong><\/p>\n

Yes.<\/p>\n

Resha Mehta<\/strong><\/p>\n

And at the gross margin level, what would that difference be similar?<\/p>\n

Harshvardhan Sarda<\/strong><\/p>\n

Yeah, somewhere along the similar level.<\/p>\n

Resha Mehta<\/strong><\/p>\n

Right. And your gross margins have been very volatile. So in the last four quarters, if I just see it’s ranged from anywhere between 41% to 50%. So how do we read this volatility in the gross margins? Are there any elements of seasonality or product mix, etc., which happen quarter-on-quarter?<\/p>\n

Harshvardhan Sarda<\/strong><\/p>\n

There is definitely a seasonality from summers to winters where we have three major seasons that we operate and we have one big summer season. We have one pre-winter season and the main winter season. So I think seasonality is one reason why the gross margins primarily vary because the raw materials change quite a bit for — especially the fabric changes for a winterwear fabric instead of for a winter wear instead of a summer wear. So that is where the majority of raw-material fabric is where majority of the gross margin changes happen.<\/p>\n

Resha Mehta<\/strong><\/p>\n

So typically, ideally, I mean from a full-year basis, what would be your target gross margin?<\/p>\n

Harshvardhan Sarda<\/strong><\/p>\n

So target gross margin would be somewhere around the 45% range.<\/p>\n

Resha Mehta<\/strong><\/p>\n

45%. Okay. Okay. And EBITDA margins like you mentioned to the previous participant would be around 20%, right? Hello.<\/p>\n

Harshvardhan Sarda<\/strong><\/p>\n

Yes, absolutely.<\/p>\n

Resha Mehta<\/strong><\/p>\n

Right. And I think we were planning a preferential of INR100 crores. So is that fundraise complete or…<\/p>\n

Harshvardhan Sarda<\/strong><\/p>\n

It’s in the process. It’s still in conversation.<\/p>\n

Resha Mehta<\/strong><\/p>\n

Right, right. And what would be the operating cash-flow generated for the last nine months?<\/p>\n

Harshvardhan Sarda<\/strong><\/p>\n

I will have to check that number. I’ll get back to you on that.<\/p>\n

Resha Mehta<\/strong><\/p>\n

Sure, sure. Okay. Okay. And do you think that there is scope for this EBITDA margin to go beyond 20% considering that now from a premiumization standpoint, you know we have this business collaboration. Then also the infantwear mix is expected to increase, right, which is higher-margin like you said, it has three, four percentage points higher margins versus your — the rest of your portfolio. So would you say there is a scope for 20% to go up or would you say that you would instead like to reinvest in your business since we are growing at a very rapid scale?<\/p>\n

Harshvardhan Sarda<\/strong><\/p>\n

Exactly, exactly. So I think the 20% number is something that we would want to be at or maybe enhance it by a couple of basis-points, but that’s about it. We don’t want to improve the margins drastically as well because we would rather reinvest in the business we are planning a major expansion going ahead. So I think it would make sense.<\/p>\n

Resha Mehta<\/strong><\/p>\n

So when you say major expansion, this would be basically the capacity expansion that you’re talking about since we are at around 85 utilization levels, right?<\/p>\n

Harshvardhan Sarda<\/strong><\/p>\n

Yes.<\/p>\n

Resha Mehta<\/strong><\/p>\n

And what kind of capacity expansion are we looking at or would that be subject to the fundraise that we are able to kind of pull off?<\/p>\n

Harshvardhan Sarda<\/strong><\/p>\n

We are planning the capacity expansion like irrespective of the fundraise. But then we are planning a greenfield expansion, which would take the capacity to almost double of what the current is and will it over a period of next four years, it will grow up to almost 3 times of the current capacity.<\/p>\n

Resha Mehta<\/strong><\/p>\n

And why would you say that you know, we would want to retain the manufacturing also at our end. So currently all of our products are manufactured in-house or is there an element of outsourcing too?<\/p>\n

Harshvardhan Sarda<\/strong><\/p>\n

Almost all our products are manufactured in-house.<\/p>\n

Resha Mehta<\/strong><\/p>\n

And why would we have this philosophy of doing everything in-house and not kind of outsourcing it? Because if you look at…<\/p>\n

Harshvardhan Sarda<\/strong><\/p>\n

That — so manufacturing is where our USP of the brand has been built on. Our primary USP of the brand has been product, just like product excellence is what has driven our brand for the last 15 years. We work on a very small sales team, major — majority of our sales is through world of mouth marketing from our distributors, from our retailers and all of that is primarily because of the product excellence that we have. So retaining that is where the USP of the company eventually lies. We would want to definitely maintain that at our end.<\/p>\n

Resha Mehta<\/strong><\/p>\n

Understood. Understood. Great. Thanks and best wishes.<\/p>\n

Harshvardhan Sarda<\/strong><\/p>\n

Thank you.<\/p>\n

Operator<\/strong><\/p>\n

The next question is from the line of Avinash from Financial Services. Please go-ahead.<\/p>\n

Avinash<\/strong><\/p>\n

Yeah, gentlemen, am I audible?<\/p>\n

Harshvardhan Sarda<\/strong><\/p>\n

Yes,. Thank you.<\/p>\n

Avinash<\/strong><\/p>\n

Yeah. So first thing is, what we sell is — we sell 100%, you said under our brand Doremi. And do we manufacture out of this 27,000, 28,000 pieces per day for somebody else also?<\/p>\n

Harshvardhan Sarda<\/strong><\/p>\n

No, primarily it is our own brand.<\/p>\n

Avinash<\/strong><\/p>\n

When you say primarily 95% it is yours.<\/p>\n

Harshvardhan Sarda<\/strong><\/p>\n

Yeah, somewhere around those.<\/p>\n

Avinash<\/strong><\/p>\n

Okay. And is it possible to get-in terms of number of pieces, how much we manufactured in the nine months period.<\/p>\n

Harshvardhan Sarda<\/strong><\/p>\n

The overall number we will have to — I don’t have the data readily available for the number of pieces for nine months with me but we can definitely take this conversation outside and do this.<\/p>\n

Avinash<\/strong><\/p>\n

Okay, I’ll take it offline there. Thanks a lot.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. A reminder to all participants that you may press star and one to ask a question. The next question is from the line of Akansha Parab, an Individual Investor. Please go-ahead.<\/p>\n

Akansha Parag<\/strong><\/p>\n

Yeah. Thanks for the opportunity. So I have two questions. May I know our — what is our distributor target for FY 2025 and what is the contribution of top-10 cities?<\/p>\n

Harshvardhan Sarda<\/strong><\/p>\n

So overall distributor target would be somewhere around INR185 for this year. And if I had to say in terms of states, so Gujarat, Maharashtra and Punjab, and Rajasthan contribute around 30% of our overall revenue.<\/p>\n

Akansha Parag<\/strong><\/p>\n

Okay. And do we plan to have an omnichannel presence by FY ’26? I mean direct online sales to our customers to align with other players in the retail industry.<\/p>\n

Harshvardhan Sarda<\/strong><\/p>\n

So as I said, we have already are selling online through first cry. We have a very, very strong presence on. So we are already omnichannel in — per se. Along with that, we also have our own website where we are doing some business, not aggressively advertising that website yet, but we already have a very strong presence. We have almost 8% of our revenue coming in from online from first cry.<\/p>\n

Akansha Parag<\/strong><\/p>\n

Okay. Okay. Yeah, thanks.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. Participants who wish to ask a question may press star and one at this time. The next question is from the line of Manoj Agarwal, an Individual Investor. Please go-ahead.<\/p>\n

Manoj Agarwal<\/strong><\/p>\n

Hi, good morning. I just want to ask a question that what is your business outlook and strategy on the B2B segment you have holding going-forward? Thanks.<\/p>\n

Harshvardhan Sarda<\/strong><\/p>\n

We are very, very confident on growing the B2B distributor segment where we are expanding our presence — deepening our presence in Maharashtra, where we are already-strong at. Along with that, we have targeted UP for the next — for this year and next year, where we want to improve our distributor presence across cities in Uttar Pradesh, and Pradesh, that region, particularly as well. So I think B2B segment is something that we have built the company on and we want to strongly grow it as well going-forward.<\/p>\n

Manoj Agarwal<\/strong><\/p>\n

Okay. Thank you. That was helpful, sir. Thank you so much. All the best.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. Ladies and gentlemen, if you wish to ask a question to the management, you may press star and one at this time. The next question is from the line of Marisha Mehta from Green Edge Wealth. Please go-ahead.<\/p>\n

Resha Mehta<\/strong><\/p>\n

Yeah. Thanks for the follow-up. Just the last one on the exports bit. So are we exporting currently if yes, you know what are the margins in the export market and are all of those white-labeled or are they other our own brands?<\/p>\n

Harshvardhan Sarda<\/strong><\/p>\n

So primarily all our exports are under our own brand. We have around 3% coming in from exports this year as of now. And most of it is in our own plans with margins remaining slight similar to the domestic market margins, right?<\/p>\n

Resha Mehta<\/strong><\/p>\n

And would the working capital kind of be a little bit worse off than our domestic market?<\/p>\n

Harshvardhan Sarda<\/strong><\/p>\n

No, it remains similar. It’s almost similar margin, not a very, very different. So for exports is just a different distributor for us. That’s about it. Like that’s how they operate at.<\/p>\n

Resha Mehta<\/strong><\/p>\n

And we are exporting to how many countries?<\/p>\n

Harshvardhan Sarda<\/strong><\/p>\n

We are exporting to around seven countries as of now.<\/p>\n

Resha Mehta<\/strong><\/p>\n

Got it. So you said working capital and margins are broadly similar to our company averages, right?<\/p>\n

Harshvardhan Sarda<\/strong><\/p>\n

Yes, yes, yes.<\/p>\n

Resha Mehta<\/strong><\/p>\n

All right, okay, thank you.<\/p>\n

Operator<\/strong><\/p>\n

As there are no further questions from the participants. I now hand the conference over to the management for closing comments.<\/p>\n

Harshvardhan Sarda<\/strong><\/p>\n

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 at Ernst Young. Thank you. Thank you, everyone.<\/p>\n

Operator<\/strong><\/p>\n

On behalf of Irisk Clothings, that concludes this conference. Thank you for joining us and you may now disconnect your lines.<\/p>\n","protected":false},"excerpt":{"rendered":"

Iris Clothings Ltd (NSE: IRISDOREME) Q3 2025 Earnings Call dated Feb. 04, 2025 Corporate Participants: Abhishek Bhatt \u2014 Investor Relations Harshvardhan Sarda \u2014 Business Head Niraj Agarwal \u2014 Chief Financial Officer Analysts: Midhat Samit \u2014 Analyst Bharat Sharma \u2014 Analyst Navin Kumar \u2014 Analyst Unidentified Participant Resha Mehta \u2014 Analyst Avinash \u2014 Analyst Akansha Parag […]<\/p>\n","protected":false},"author":2377,"featured_media":147581,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[6349],"tags":[9492,10169,9175,9104,9092,14492,10089],"class_list":["post-173563","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-transcripts","tag-consumer-discretionary","tag-earnings","tag-earnings-call","tag-earnings-conference","tag-earnings-transcripts","tag-financial-results","tag-quarterly-earnings"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/Transcript-thumbnail.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":149659,"url":"https:\/\/alphastreet.com\/india\/iris-clothings-ltd-q1-fy24-76-rise-in-profits\/","url_meta":{"origin":173563,"position":0},"title":"Iris Clothings Ltd Q1 FY24; 76% rise in Profits","author":"Hardik Bhandare","date":"July 24, 2023","format":false,"excerpt":"IRIS Clothings Limited, incorporated in 1956, is engaged in designing, manufacturing, branding and selling garments for kids. Iris Clothings Limited is a fast-growing readymade garment company and is engaged in designing, manufacturing, branding and selling garments for kids wear under the brand name DOREME in India. It produces a broad\u2026","rel":"","context":"In "AlphaGraphs"","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/07\/image-150.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/07\/image-150.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/07\/image-150.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/07\/image-150.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/07\/image-150.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/07\/image-150.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":145285,"url":"https:\/\/alphastreet.com\/india\/iris-clothings-ltd-irisdoreme-q4-fy23-earnings-concall-transcript\/","url_meta":{"origin":173563,"position":1},"title":"Iris Clothings Ltd (IRISDOREME) Q4 FY23 Earnings Concall Transcript","author":"IRS_INDIA","date":"May 8, 2023","format":false,"excerpt":"Iris Clothings Ltd (NSE:IRISDOREME) Q4 FY23 Earnings Concall dated May. 05, 2023. Corporate Participants: Sonia Keswani\u00a0--\u00a0Investor Relations Harshvardhan Sharda\u00a0--\u00a0Business Head Niraj Agarwal\u00a0--\u00a0Chief Financial Officer Analysts: Sahil Shah\u00a0--\u00a0SS Investcorp -- Analyst Harmeet Desai\u00a0--\u00a0-- Analyst Karan\u00a0--\u00a0-- Analyst Presentation: Operator Ladies and gentlemen, good day and welcome to Iris Clothings limited Q4 and\u2026","rel":"","context":"In "Consumer"","block_context":{"text":"Consumer","link":"https:\/\/alphastreet.com\/india\/category\/consumer-stocks\/"},"img":{"alt_text":"Earnings Conference Call Transcript","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/09\/Transcript-thumbnail-e1657213425955.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/09\/Transcript-thumbnail-e1657213425955.jpg?resize=350%2C200&ssl=1 1x, 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\u2014 Business Head Niraj Agarwal \u2014 Chief Financial Officer Analysts: Unidentified Participant Deepali Kumari \u2014 Analyst Nisha \u2014 Analyst Presentation: operator Ladies and gentlemen, good day and welcome to Iris Clothing\u2026","rel":"","context":"In "Earnings Call Transcripts"","block_context":{"text":"Earnings Call Transcripts","link":"https:\/\/alphastreet.com\/india\/category\/transcripts\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/Transcript-thumbnail.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/Transcript-thumbnail.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/Transcript-thumbnail.jpg?resize=525%2C300&ssl=1 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income of \u20b9487 million in Q3 FY26, registering a 46% year-on-year increase from \u20b9334 million in the corresponding quarter last year. For the nine months ended December 31, 2025, total income rose 23% YoY to \u20b91,305 million, compared with \u20b91,063 million in 9MFY25. EBITDA\u2026","rel":"","context":"In "Retail"","block_context":{"text":"Retail","link":"https:\/\/alphastreet.com\/india\/category\/retail-stocks\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]}],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/173563","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/users\/2377"}],"replies":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/comments?post=173563"}],"version-history":[{"count":0,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/173563\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media\/147581"}],"wp:attachment":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media?parent=173563"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/categories?post=173563"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/tags?post=173563"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}