Active Clothing Co has initiated a capacity expansion programme to enhance its sweater and T-shirt manufacturing capabilities. The company entered into a contract for the supply of 106 fully computerized flat knitting machines from Ningbo Cixing Co. Ltd., China.

The expansion targets both its Flat Knitted Sweaters Division and Circular Knits (T-shirts) Division. Management stated that the addition of these state-of-the-art machines will strengthen production capacity, improve productivity, and enable a wider range of products. The machinery is expected to be installed and commissioned in a phased manner during FY27.

Operational Impact

The combined expansion is designed to meet the requirements of the company's growing customer base. By adopting modern machinery, Active Clothing Co anticipates higher operating efficiencies. These improvements are expected to support top-line growth through increased production and sales volumes while contributing positively to profitability.

Existing Infrastructure

The new acquisition adds to the company's existing setup, which it describes as the largest fully-fashioned knitting setup in a single factory in India. The current machine breakdown includes:

What the Numbers Show

The procurement of 106 new Cixing machines represents a significant addition to the existing Cixing fleet of 164 units. This move increases the total Cixing machine count by approximately 65%, signaling a strategic deepening of reliance on this specific supplier for flat knitting operations alongside its established Shima Seiki and Stoll infrastructure.

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.

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