Active Clothing Co profit rises 19% to ₹100.5 crore in FY26

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Reviewed by
Suketu GScanX News Team
Key Highlights
  • Net profit rose 18.9% to ₹100.5 crore in FY26, driven by lower interest costs
  • Revenue grew 6.9% to ₹3,164.4 crore, while EBITDA margin dipped to 9.2%
  • Company issued ₹23 crore in convertible warrants on a preferential basis
  • No dividend recommended; AGM scheduled for September 25, 2026
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Active Clothing Co Ltd reported a 18.9% year-on-year rise in net profit to ₹100.5 crore for FY26. Revenue from operations grew 6.9% to ₹3,164.4 crore, while EBITDA expanded marginally by 3.2% to ₹293.9 crore.

The Board of Directors approved the financial results on August 31, 2026. The company scheduled its 24th Annual General Meeting (AGM) for September 25, 2026, at its registered office in Mohali.

Financial Performance

The company’s total income rose to ₹3,183.1 crore from ₹2,971.2 crore in FY25. While top-line growth was steady, operating profitability faced pressure. EBITDA margin contracted to 9.2% from 9.6% in the previous year, reflecting cost and pricing pressures in the apparel sector.

However, the company improved its bottom-line conversion through better financial efficiency. Interest costs declined from ₹113.6 crore to ₹102.8 crore, and depreciation remained stable at ₹70.5 crore. Consequently, profit before tax surged 20.1% to ₹120.6 crore.

Metric FY26 FY25 Change
Revenue ₹3,164.4 crore ₹2,961.5 crore +6.9%
EBITDA ₹293.9 crore ₹284.9 crore +3.2%
Net Profit ₹100.5 crore ₹84.5 crore +18.9%
EPS ₹6.48 ₹5.45 +18.9%

What the Numbers Show

The divergence between EBITDA growth (3.2%) and net profit growth (18.9%) highlights the impact of interest savings. With interest expenses falling by over ₹10 crore, the benefit flowed directly to the bottom line, offsetting the slight compression in operating margins. This suggests that while core operational efficiency faced headwinds, financial management helped preserve overall profitability.

Capital Raise and Dividends

During FY26, the company issued up to 20 lakh convertible warrants at a premium of ₹105 each, aggregating up to ₹23 crore. Shareholders approved this preferential issue at an Extraordinary General Meeting held on February 26, 2026. The company received upfront consideration of 25% of the issue proceeds.

The board did not recommend any dividend for FY26, citing continuous expansion activities. Profits were transferred to reserves during the financial year.

AGM Details

The 24th AGM will be held on September 25, 2026, at 3:00 pm at E-225, Phase VIII B, Industrial Area, Mohali. Key agenda items include:

  • Adoption of audited standalone financial statements for FY26.
  • Re-appointment of Mrs. Renu Mehra as a director, who retires by rotation.

The book closure period is set from September 19, 2026, to September 25, 2026. Mrs. Poonam Sethi has been appointed as the scrutinizer for the voting process.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE380Z01015/2d1f4e32-d001-4599-a513-ae6e9995e81c.pdf

Historical Stock Returns for Active Clothing Co

1 Day5 Days1 Month6 Months1 Year5 Years
-0.83%-6.16%-4.63%+1.73%-19.02%0.0%

How will Active Clothing Co plan to address the EBITDA margin compression amidst ongoing cost and pricing pressures in the apparel sector?

What specific expansion projects are driving the decision to retain profits rather than declare a dividend for FY26?

Will the issuance of convertible warrants lead to significant equity dilution, and how might this impact long-term shareholder value?

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
-0.83%-6.16%-4.63%+1.73%-19.02%0.0%

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?

More News on Active Clothing Co

1 Year Returns:-19.02%