Celebrity Fashions FY26 Results: Net loss narrows 14% to ₹15.72 crore
- Net loss narrowed 14% YoY to ₹15.72 crore from ₹18.26 crore in FY25
- Revenue rose 4% to ₹172.06 crore, with exports contributing ₹160.27 crore
- Company absorbed ₹18.70 crore in US tariff-related discounts to retain customers
- Capacity rationalisation incurred ₹6.25 crore in one-time closure costs
- Fully redeemed Cumulative Redeemable Preference Shares in March 2026
*this image is generated using AI for illustrative purposes only.
Celebrity Fashions reported a net loss of ₹15.72 crore for the financial year ended March 31, 2026, an improvement from the ₹18.26 crore loss recorded in FY25. The company’s revenue from operations grew 4% year-on-year to ₹172.06 crore, driven by higher export volumes despite significant headwinds from US tariff policies.
Financial Performance
Revenue from operations stood at ₹172.06 crore in FY26, up from ₹165.26 crore in the previous year. Exports contributed ₹160.27 crore to this total, while domestic sales accounted for ₹7.09 crore. Other operating revenues, including export incentives and job contract manufacturing activities, added ₹4.70 crore.
The company reported an EBITDA loss of ₹5.50 crore for FY26, compared to an EBITDA loss of ₹6.63 crore in FY25. Total expenses amounted to ₹188.20 crore, rising from ₹183.93 crore in the prior year. Cost of materials remained relatively stable at ₹74.08 crore, while employee benefit expenses were ₹60.75 crore.
| Metric | FY26 | FY25 | Change |
|---|---|---|---|
| Revenue from Operations | ₹172.06 crore | ₹165.26 crore | +4.1% |
| EBITDA Loss | (₹5.50 crore) | (₹6.63 crore) | Improved |
| Net Loss | (₹15.72 crore) | (₹18.26 crore) | -14% |
| EPS (Basic) | (₹2.63) | (₹3.22) | Improved |
Tariff Impact and Capacity Rationalisation
A significant portion of the company’s rebuilt customer base was exposed to the US market. Additional tariffs imposed on supplies from India led customers to seek substantial price reductions. To preserve these strategic relationships, Celebrity Fashions absorbed approximately ₹18.70 crore in tariff-related discounts and price reductions during FY26.
Simultaneously, the company continued its capacity rationalisation programme. The closure of the additional manufacturing facility at Avadi, initiated in February 2025 and completed in August 2025, involved one-time costs of approximately ₹6.25 crore. This move aimed to align manufacturing capacity with commercially sustainable business levels following the exit of VF Corporation from its supply base.
Balance Sheet and Capital Structure
The company completed the repayment of its Cumulative Redeemable Preference Shares (CRPS) in March 2026, marking the full redemption of this instrument. Paid-up equity share capital increased to ₹64.55 crore from ₹59.68 crore, following a preferential allotment of 48,69,933 equity shares at ₹10.31 per share.
Total assets decreased to ₹111.60 crore from ₹147.03 crore in the previous year. Current assets fell significantly to ₹84.22 crore from ₹114.43 crore, driven by a sharp reduction in trade receivables to ₹24.25 crore from ₹53.11 crore and inventories to ₹27.19 crore from ₹47.54 crore. Net debt improved to (₹51.38 crore) from (₹58.38 crore).
What the Numbers Show
The divergence between revenue growth and margin expansion highlights the severity of the tariff impact. While revenue increased by ₹6.80 crore, the company absorbed ₹18.70 crore in tariff-related discounts. This suggests that without these concessions, the operational performance would have been materially stronger. The narrowing net loss is therefore driven more by cost rationalisation and working capital efficiency than by top-line pricing power.
Corporate Governance and AGM
The company scheduled its 37th Annual General Meeting for September 30, 2026, to be held via Video Conferencing. Key agenda items include the adoption of audited financial statements for FY26 and the re-appointment of Mr. Venkatesh Rajagopal as a director. No dividend was recommended for the year due to accumulated losses.
Historical Stock Returns for Celebrity Fashions
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.30% | +1.81% | -3.58% | -17.20% | -45.07% | -23.41% |
How will Celebrity Fashions mitigate the risk of further margin erosion if US tariff policies intensify or expand to other product categories in FY27?
What specific strategies is the company employing to diversify its export destinations beyond the US to reduce dependency on a single, tariff-vulnerable market?
Will the recent capacity rationalisation and closure of the Avadi facility be sufficient to achieve consistent EBITDA profitability, or are further structural cost-cutting measures anticipated?
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