Celebrity Fashions reported a net loss of ₹2.37 crore for the quarter ended June 30, 2026 (Q1FY26), narrowing significantly from the ₹6.73 crore loss recorded in Q1FY25. The improvement came despite a 35% year-on-year decline in revenue from operations, which fell to ₹26.42 crore from ₹40.67 crore in the corresponding prior period.

The Board of Directors approved the unaudited financial results on August 1, 2026, pursuant to Regulation 30 and Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were prepared in accordance with Indian Accounting Standards (Ind AS) and subjected to a limited review by statutory auditors SRSV & Associates.

Financial Performance

Total income for the quarter stood at ₹27.13 crore, comprising ₹26.42 crore from operations and ₹0.71 crore from other income. Total expenses amounted to ₹29.50 crore, leading to a pre-tax loss of ₹2.37 crore. There were no exceptional items or tax expenses reported for the period.

The company’s accumulated losses stood at ₹57.31 crore as of June 30, 2026. However, the auditors confirmed that sufficient evidence was obtained to establish the continuance of the company as a going concern, with financial statements prepared on this basis.

Impact of US Tariffs

Management disclosed that the company extended additional discounts and price reductions aggregating ₹3.55 crore during the quarter to retain existing customer relationships. This measure was taken to mitigate the impact of tariffs imposed by the U.S. Government on imports from India, effective from April 2, 2025, and an additional tariff from August 27, 2025. Although these tariffs and related penalties were subsequently withdrawn by U.S. authorities, major customers did not revoke the negotiated discounts due to prevailing business challenges. Consequently, the company absorbed the impact through adjustments to revenue and expenses.

What the Numbers Show

While revenue contracted sharply by 35% year-on-year, the company achieved a significant reduction in its quarterly loss, which improved by approximately 65% compared to Q1FY25. This divergence suggests that cost-cutting measures or operational efficiencies offset a portion of the top-line decline. Notably, employee benefits expense dropped to ₹10.77 crore from ₹18.65 crore in the prior year quarter, and cost of material consumed fell to ₹9.20 crore from ₹20.21 crore, indicating a substantial reduction in variable costs alongside lower sales volume. The absorption of ₹3.55 crore in tariff-related discounts directly pressured margins, highlighting the sensitivity of the garment export segment to geopolitical trade policies.

Celebrity Fashions Limited has secured trading approval from BSE Limited and the National Stock Exchange of India Limited for 48,69,933 equity shares issued on a preferential basis. The securities, which carry a face value of ₹10 each, were issued at a premium of ₹0.31 per share. These shares are now listed and admitted to dealings on both exchanges effective from May 21, 2026.

Issue Details

The preferential allotment consists of equity shares ranking pari-passu with the existing equity shares of the company. The shares bear distinctive numbers ranging from 59678414 to 64548346. The issue price for the allotment was ₹10.31 per share.

Lock-in Schedule

A portion of the newly issued shares is subject to a lock-in period as per regulatory requirements. The lock-in details vary based on the specific distinctive number ranges of the shares allotted.

The company informed the exchanges regarding the listing status in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligation and Disclosure Requirements) Regulations, 2015. The shares were allotted on March 21, 2026, and the trading approval marks the final step for these securities to be available for public trading.