Iris Clothings reported its financial results for the quarter and year ended 31st March, 2026, during a Group Earnings Conference Call held on May 12, 2026. The company delivered robust revenue growth and significant improvement in operational profitability for the period. Management highlighted the expansion of the distributor network and the launch of a dedicated direct-to-consumer platform as key growth drivers during the year.

Financial Performance

The company's total income for Q4 FY26 stood at INR60.4 crores, compared to INR40.2 crores in Q4 FY25. Consolidated income for FY26 witnessed a growth of 30.5% year-on-year, reaching INR190.8 crores against INR146.2 crores reported in FY25. Profit after tax for the quarter witnessed robust growth of 43.5% year-on-year from INR4.48 crores to INR6.4 crores. For the full year, net profit was INR16.1 crores compared to INR13.1 crores in FY25, a growth of 23.4%.

Operational Highlights

EBITDA during the quarter grew by 34.1% year-on-year to INR11 crores with an EBITDA margin of 18.2%. For FY26, EBITDA was INR29.4 crores with a margin of 15.4%. Management noted that while EBITDA margins declined from 19.3% in FY25 to 15.4% in FY26, the decline was attributed to the addition of new value product categories and significant spending on branding for the D2C platform launch. The company expects EBITDA margins to improve to 20%-22% as the digital business scales over the next two years.

Strategic Outlook

Iris Clothings is focusing on expanding its distribution network, particularly in the southern states of Telangana, Andhra Pradesh, and Karnataka, as well as Uttar Pradesh. The company is targeting a revenue growth of 30% to 35% for the coming year. It plans to add 8 to 10 Exclusive Brand Outlets (EBOs) and expects digital platforms to contribute 20% to 25% of overall revenue in the next year. The transcript of the conference call is available on the company's official website.

Iris Clothings Limited filed its audited financial results for the quarter and year ended March 31, 2026, with the National Stock Exchange of India Limited. The disclosure, signed by Managing Director Santosh Ladha, was submitted pursuant to Regulation 30 and Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The financial results, approved by the Board of Directors at their meeting held on May 11, 2026, were subsequently published on May 12, 2026 in Business Standard (English) and Aajkal (Bengali), and audited by the Statutory Auditors as required under SEBI LODR Regulations.

Q4 FY26 and Full-Year Financial Performance

Iris Clothings reported strong revenue and profit growth for both Q4 FY26 and the full year FY26. Total Income for Q4 FY26 stood at ₹605 Mn, up 50.40% year-on-year from ₹402 Mn, while full-year Total Income reached ₹1,909 Mn compared to ₹1,463 Mn in FY25, a growth of 30.50% year-on-year. Profit after tax (PAT) for Q4 FY26 came in at ₹64 Mn, rising 43.50% from ₹45 Mn in Q4 FY25, while full-year PAT grew 23.40% to ₹162 Mn from ₹131 Mn. The following table presents the consolidated financial highlights:

While revenue and absolute profit figures registered significant improvement, both EBITDA and PAT margins contracted year-on-year, reflecting higher operating costs relative to revenue growth.

Audited Financial Results (Statement of Accounts)

The audited financial results statement, published in compliance with Regulation 47, provides a detailed breakdown of the company's quarterly and annual performance in Rupees in Lakhs. The statement also includes a sequential comparison with the quarter ended December 31, 2025. The following table presents the audited figures:

The company operates in a single segment — manufacturing and trading of garments — as envisaged under Ind AS 108. As of March 31, 2026, Iris Clothings has no subsidiary, associate, or joint venture, and is therefore not required to prepare consolidated financial statements. The financial results have been prepared in accordance with Indian Accounting Standards (Ind AS) notified by the Ministry of Corporate Affairs under the Companies (Indian Accounting Standard) Rules, 2015.

Corporate Actions: Rights Issue and Bonus Shares

During the period, Iris Clothings undertook two significant corporate actions that impacted its equity capital structure. The company raised Rs. 4,756.28 Lakhs through a rights issue by issuing 1,35,95,105 equity shares at Rs. 35/- per share, including an equity share premium of Rs. 33/-, with allotment completed on April 24, 2025. Subsequently, based on Board approval and member approval, the company allotted bonus equity shares in the ratio of 1:1 on July 7, 2025. As a result, the Earnings Per Share (Basic and Diluted) for comparative prior periods have been revised and recalculated accordingly. The paid-up equity share capital as of March 31, 2026 stood at Rs. 3,806.63 Lakhs (face value Rs. 2/- per share).

Management Commentary

Commenting on the company's performance, Mr. Santosh Ladha, Managing Director, said:

"We are pleased to report a robust and strong overall performance during the year. This growth reflects the increasing strength of our brand, expanding customer franchise, and the resilience of our business model, supported by a well-entrenched distribution network that has enabled deeper market penetration and sustained momentum across key regions.

Over the years, we have steadily transformed from a garment manufacturing company into a rapidly emerging branded kidswear player, driven by a strong focus on product innovation, consumer centricity, and market expansion. Our scalable distribution-led platform and growing brand acceptance continue to reinforce our positioning and strengthen our long-term growth trajectory.

As we enter the next phase of our growth journey, the launch of our dedicated Direct-to-Consumer (D2C) platform marks a significant strategic milestone in building a future-ready omnichannel ecosystem. This digital integration is expected to deepen customer engagement, expand our digital reach, unlock valuable consumer insights, and accelerate data-driven innovation, thereby creating a powerful foundation for scalable and sustainable long-term value creation."

Key Financial Ratios

The investor presentation highlighted key financial ratios for FY26, reflecting the company's balance sheet strength and profitability trends. Notably, the debt-to-equity ratio improved sharply to 0.14x in FY26 from 0.50x in FY25, indicating significant deleveraging. Networth expanded to Rs. 1,417.59 Mn in FY26 from Rs. 822.8 Mn in FY25. The following table summarises the ratio analysis:

Revenue from operations has grown at a CAGR of 19% from FY14 to FY26, while PAT has expanded at a CAGR of 30% over the same period, underscoring the company's consistent long-term growth trajectory.

Business Overview and Brand Presence

Iris Clothings operates under its flagship brand DOREME, a well-established kidswear label with a PAN India presence. As of the presentation date, the company operates 13 units (10 manufacturing, 2 dispatch, 1 corporate office) with a total installed capacity of 36,000 pieces per day across 1,45,000 sq. ft. The distribution network spans 216 distributors across 26 states, with exports to 9 countries including Portugal, Nepal, Mozambique, Saudi Arabia, UAE, Philippines, and Sri Lanka. The company also operates 7 Exclusive Brand Outlets (EBOs) in East India and employs 1,760 people.

The DOREME product portfolio covers apparel for infants, toddlers, and junior boys and girls (ages 0–16 years), spanning T-shirts, dresses, loungewear, winterwear, sportswear, innerwear, and infant accessories, with price points ranging from Rs. 90 to Rs. 2,500. The company holds a licensing agreement with Disney, enabling it to design and sell apparel featuring Disney and Marvel characters, with FAMA approval received for manufacturing Disney products, opening additional export opportunities.

Vision 2030 and Strategic Roadmap

Iris Clothings has outlined an ambitious Vision 2030 strategy targeting 300 distributors, 300+ Established Brand Outlets, 20,000+ retail touchpoints in India, and 3 million+ direct consumers. The company plans to expand its manufacturing capacity through brownfield debottlenecking, greenfield construction of a 200,000 sq. ft. facility at an estimated capital outlay of Rs. 50 crores in West Bengal, and outsourced manufacturing (OEMs) for select product categories. The current capacity utilisation stands at 75%, with plans to increase it by approximately 10%.

On the retail front, the company is pursuing a Direct-to-Consumer (D2C) strategy through a cluster-based EBO model, initially in eastern regions, followed by expansion into western markets. EBOs will operate under the Company Owned Company Operated (COCO) model for the near term, with plans to introduce a Franchise Owned Company Operated (FOCO) model after FY26. The online D2C strategy focuses on building a brand-owned website with data-driven personalisation, influencer-led marketing, and marketplace optimisation.

Earnings Conference Call

Prior to the investor presentation filing, Iris Clothings had intimated stock exchanges of an Earnings Conference Call scheduled for May 12, 2026 (Tuesday) at 11:00 AM IST, covering financial results for the quarter and year ended March 31, 2026. Senior management representatives on the call included Mr. Santosh Ladha (Managing Director), Mr. Harshvardhan Sarda (Business Head), and Mr. Niraj Agarwal (Chief Financial Officer). The following dial-in details were provided:

The press release was signed by Santosh Ladha, Managing Director (DIN: 03585561), on behalf of Iris Clothings Limited, headquartered at 103/24/1, Foreshore Road, Howrah 711 102, India.

Source: None/Company/INE01GN01025/bffc788c9c934ea1.pdf