Marc Loire Fashions has scheduled a Board of Directors meeting for September 16, 2026, to consider increasing its authorised share capital. The company will also seek approval to convene an Extra-Ordinary General Meeting (EGM) to ratify the move.

The meeting is set to take place at 2:00 pm at the company’s registered office in New Delhi. The agenda includes altering the Memorandum of Association consequent to the capital increase, subject to member and regulatory approvals.

Key Agenda Items

The board intends to transact several matters related to the proposed capital restructuring:

• Approve the increase in authorised share capital.
• Convene an EGM for shareholder ratification.
• Fix book closure, cutoff, and record dates for the EGM.
• Conduct the EGM via video conferencing or audio-video messaging system (VC/OAVM).
• Enable e-voting through NSDL and appoint a scrutinizer for the process.

The company notified BSE Limited of the meeting pursuant to Regulation 29 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The filing was signed by Vasant Kuber Soni, Company Secretary & Compliance Officer.

Marc Loire Fashions reported a 62% year-on-year decline in net profit to ₹17.7 crore for FY26, weighed down by significant one-time expenses related to its initial public offering. The company's revenue from operations also contracted by 16% to ₹353.9 crore during the period ended March 31, 2026.

Despite the drop in bottom-line profitability, the footwear brand maintained positive operating performance, posting an EBITDA of ₹27.0 crore with a margin of 7.57%. The Board attributed the sharp decline in profit after tax primarily to IPO-related costs, which amounted to ₹22.4 crore and were accounted for within other expenses during the financial year.

Financial Performance

The company raised ₹210.0 crore through its IPO in July 2025, listing its equity shares on the BSE SME platform. While the capital infusion strengthened the balance sheet, the associated issuance costs heavily impacted the current fiscal's net margins. Revenue from operations stood at ₹353.9 crore compared to ₹422.6 crore in FY25. Total income for the year was ₹357.0 crore, including other income of ₹3.1 crore.

Total expenses for the year were ₹332.8 crore. This included purchases of stock-in-trade amounting to ₹269.9 crore and employee benefit expenses of ₹11.0 crore. Finance costs decreased to ₹1.0 crore from ₹1.6 crore in the previous year.

Balance Sheet and Cash Flows

Marc Loire Fashions closed FY26 with a debt-free balance sheet. The company's net worth increased to ₹335.2 crore, supported by equity share capital of ₹71.0 crore and reserves and surplus of ₹264.2 crore. Current assets stood at ₹370.9 crore, significantly higher than current liabilities, resulting in a robust current ratio of 7.29 times compared to 1.84 times in FY25.

Cash flow from operating activities turned negative at -₹128.7 crore, largely driven by a substantial increase in inventory levels. Inventories rose by ₹92.7 crore during the year, reflecting stock buildup ahead of retail expansion. Investing activities consumed ₹67.7 crore, while financing activities yielded a marginal inflow of ₹0.4 crore. The closing cash balance was ₹23.7 crore.

Operational Highlights

The company expanded its physical footprint by opening three exclusive brand outlets in Delhi NCR by March 2026. It plans to open five additional stores in Punjab and targets reaching 15 stores nationwide by March 2027. E-commerce continued to be the dominant channel, contributing 53% of total revenue, while wholesale and other channels accounted for 41%. Offline retail contributed 6% as the company scales its omnichannel presence.

What the Numbers Show

The divergence between positive EBITDA and sharply lower net profit highlights the non-recurring nature of the drag on profitability. With operating margins holding steady at 7.57%, the core business remains profitable. The primary pressure point is the ₹22.4 crore in issue expenses, which reduced the net profit margin to 4.96% from 11.08% in the prior year. Excluding these one-time costs, the underlying operational efficiency appears stable despite the top-line contraction.