Active Clothing Co signs Pan-India distribution deal with Apparel Group

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Reviewed by
Riya DScanX News Team
Key Highlights
  • Active Clothing Co signed a Pan-India distribution deal with Apparel Group on August 24, 2026
  • The agreement covers Levi's, Nike, Jordan Kids, and Ben Sherman Men's via shop-in-shop formats
  • The expansion aims to generate approximately ₹100 crore in additional revenue over 3-4 years
  • This marks a shift from regional operations in Upper North India to a national retail platform
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Active Clothing Co has entered into a Pan-India distribution agreement with Apparel Group to retail four global brands through shop-in-shop formats. The partnership, announced on August 24, 2026, targets ₹100 crore in additional revenue over the next 3-4 years.

Distribution partnership details

The company signed the arrangement with Apparel Group, which holds the authorized licensing rights for the Indian market for these brands. This move marks a strategic shift for Active Clothing Co, expanding its operations from a regional platform in Upper North India to a national distribution network.

Parameter Details
Brands to be distributed Levi's, Nike, Jordan Kids, Ben Sherman
Distribution partner Apparel Group
Distribution format Shop-in-shop stores at multi-brand retailers
Geography Pan-India
Expected additional revenue Around ₹100 crore
Revenue timeline Next 3-4 years
Announcement date August 24, 2026

Brands and segments covered

The four brands span distinct consumer segments:

  • Levi's — denim and casual apparel
  • Nike — sportswear and athletic footwear
  • Jordan Kids — children's sportswear under the Jordan brand
  • Ben Sherman — lifestyle and fashion apparel (Men's)

The shop-in-shop format allows Active Clothing Co to host dedicated brand sections within larger retail environments, enabling focused brand presentation across multiple labels simultaneously.

Strategic expansion

The company stated that this development represents an important milestone in its evolution. By leveraging its existing market capabilities and execution platform, Active Clothing Co aims to expand its presence across cities, stores, and consumer markets throughout India. The projected revenue is subject to market conditions, store expansion, and execution.

Historical Stock Returns for Active Clothing Co

1 Day5 Days1 Month6 Months1 Year5 Years
+7.06%+10.57%+1.90%+14.25%-19.59%+402.12%

How will the shift from a regional to a Pan-India distribution model impact Active Clothing Co's operational costs and supply chain logistics?

What specific strategies will the company employ to mitigate execution risks and ensure the ₹100 crore revenue target is met within the 3-4 year timeline?

How might this partnership with Apparel Group affect Active Clothing Co's relationships with existing regional distributors in Upper North India?

Active Clothing Co Q1FY27 net profit up 5% to ₹223.93 lakhs

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Reviewed by
Riya DScanX News Team
Key Highlights

Active Clothing Co posted a 5% YoY increase in Q1FY27 net profit to ₹223.93 lakhs, supported by revenue growth to ₹6,755.39 lakhs. The Board approved the results on August 14, 2026, with statutory auditors Kapoor Rajesh & Associates providing a limited review. The company confirmed full utilization of share warrant proceeds and stated that the new Labour Code had no material financial impact.

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Active Clothing Co reported a net profit of ₹223.93 lakhs for the quarter ended June 30, 2026, reflecting a 5% rise compared to ₹213.34 lakhs in the corresponding quarter of the previous year. Revenue from operations grew to ₹6,755.39 lakhs from ₹6,445.63 lakhs in Q1FY26, while total income for the quarter came in at ₹6,778.78 lakhs versus ₹6,446.45 lakhs a year ago. The unaudited standalone financial results were approved by the Board of Directors at its meeting held on August 14, 2026, and have been subjected to a limited review by statutory auditors Kapoor Rajesh & Associates, Chartered Accountants.

Quarterly financial performance

The table below presents the key financial metrics for Q1FY27 alongside the immediately preceding quarter (Q4FY26) and the year-ago quarter (Q1FY26), as well as the full year ended March 31, 2026.

Metric: Q1FY27 (Jun 30, 2026) Q4FY26 (Mar 31, 2026) Q1FY26 (Jun 30, 2025) FY26 (Mar 31, 2026)
Revenue from operations: ₹6,755.39 lakhs ₹7,271.85 lakhs ₹6,445.63 lakhs ₹31,643.63 lakhs
Other income: ₹23.39 lakhs ₹57.30 lakhs ₹0.82 lakhs ₹187.47 lakhs
Total income: ₹6,778.78 lakhs ₹7,329.15 lakhs ₹6,446.45 lakhs ₹31,831.10 lakhs
Total expenses: ₹6,507.98 lakhs ₹7,099.41 lakhs ₹6,195.46 lakhs ₹30,625.56 lakhs
Profit before tax: ₹270.80 lakhs ₹229.74 lakhs ₹250.99 lakhs ₹1,205.54 lakhs
Current tax: ₹46.87 lakhs ₹67.31 lakhs ₹37.65 lakhs ₹200.90 lakhs
Net profit: ₹223.93 lakhs ₹162.43 lakhs ₹213.34 lakhs ₹1,004.64 lakhs
Basic EPS (₹): ₹1.44 ₹1.05 ₹1.37 ₹6.48
Diluted EPS (₹): ₹1.44 ₹1.05 ₹1.37 ₹6.48

Expense breakdown

Total expenses for Q1FY27 stood at ₹6,507.98 lakhs, compared to ₹6,195.46 lakhs in Q1FY26 and ₹7,099.41 lakhs in Q4FY26. The cost of materials consumed rose sharply to ₹3,384.36 lakhs from ₹2,476.17 lakhs in Q1FY26, while purchases of stock-in-trade edged up to ₹840.70 lakhs from ₹789.35 lakhs. Employee benefits expense was broadly stable at ₹1,232.35 lakhs versus ₹1,238.47 lakhs a year ago.

Expense item: Q1FY27 Q4FY26 Q1FY26 FY26
Cost of materials consumed: ₹3,384.36 lakhs ₹2,191.37 lakhs ₹2,476.17 lakhs ₹7,990.41 lakhs
Purchases of stock-in-trade: ₹840.70 lakhs ₹5,425.86 lakhs ₹789.35 lakhs ₹14,287.32 lakhs
Changes in inventories: ₹272.21 lakhs ₹(2,758.76) lakhs ₹967.71 lakhs ₹(142.49) lakhs
Employee benefits expense: ₹1,232.35 lakhs ₹1,465.51 lakhs ₹1,238.47 lakhs ₹5,498.85 lakhs
Finance costs: ₹286.24 lakhs ₹182.60 lakhs ₹284.63 lakhs ₹1,028.25 lakhs
Depreciation and amortisation: ₹170.41 lakhs ₹187.22 lakhs ₹160.72 lakhs ₹705.47 lakhs
Freights and cartages: ₹92.50 lakhs ₹171.75 lakhs ₹110.17 lakhs ₹549.53 lakhs
Others: ₹229.21 lakhs ₹204.59 lakhs ₹135.84 lakhs ₹646.55 lakhs

Capital structure and share warrants

Paid-up equity share capital remained unchanged at ₹1,551.22 lakhs (face value of ₹10 per share) across all reported periods. Other equity as at March 31, 2026 stood at ₹7,734.12 lakhs. The company disclosed that it has fully utilised the upfront consideration of ₹5,75,00,000 received towards the allotment of share warrants dated February 26, 2026, for the objects and purposes for which the funds were raised.

Operating segment and regulatory notes

Active Clothing Co operates in a single reportable business segment, namely manufacturing and trading of garments, and is primarily operating in India, which is treated as a single geographical segment under Ind AS 108. The financial results have been prepared in accordance with Indian Accounting Standard 34 and comply with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company noted that the Government of India implemented the new Labour Code effective November 21, 2025, and that the implementation did not have a material impact on the standalone financial results for the quarter ended June 30, 2026.

Historical Stock Returns for Active Clothing Co

1 Day5 Days1 Month6 Months1 Year5 Years
+7.06%+10.57%+1.90%+14.25%-19.59%+402.12%

How will the sharp 36% increase in cost of materials consumed impact Active Clothing Co's gross margins in Q2FY27, and does the company have hedging strategies to mitigate raw material volatility?

Given the utilization of share warrant proceeds, what specific expansion projects or capital expenditures are planned for the remainder of FY27, and when are they expected to yield ROI?

With revenue declining sequentially from Q4FY26 to Q1FY27, what seasonal or operational factors contributed to this dip, and is management expecting a rebound in the upcoming quarters?

More News on Active Clothing Co

1 Year Returns:-19.59%