Signoria Creation Limited has outlined a strategy to achieve a group turnover of Rs 120 crore by FY28, supported by capacity expansion and entry into international markets. The company reported a consolidated net sales turnover of Rs 49.3 crore for FY26, with standalone revenue of Rs 40.45 crore and the balance contributed by its subsidiary, Herbal Prints Pvt. Ltd. The management targets a total turnover of Rs 80 crore for FY27, comprising Rs 50 crore from the parent entity and Rs 30 crore from the subsidiary.

Financial Performance and Margins

The company addressed margin pressures during the earnings conference call, noting that PAT margins had declined to approximately 10% in FY26 due to rising raw material costs and gas prices. Vasudev Agarwal, Chairman and Managing Director, stated that the company aims to restore PAT margins to 12% in FY27. He indicated that with the target turnover of Rs 120 crore in FY28, profit after tax is expected to reach around Rs 15 crore. The current EBITDA margin stands at 17.13%, with plans to increase it to over 20% in the coming years.

Operational Expansion and Capacity

Signoria Creation is currently operating at 75% capacity utilization, up from 50% previously, following the addition of 200 machines. The company plans to install another 200 machines this year to support its growth trajectory. The management noted that the current setup can support the Rs 80 crore revenue target for FY27. To further enhance production capabilities and design development, the subsidiary Herbal Prints Pvt. Ltd. will install modern digital printing machines over the next two years. This investment is expected to reduce inventory levels significantly by allowing on-demand production.

Future Strategy and Market Outlook

The company intends to enter the international market within the next 2-3 years, targeting regions such as the Middle East, Australia, and the US. Currently, exports account for a minimal portion of sales, with some goods reaching Nepal via agents. On the domestic front, Signoria Creation plans to strengthen its B2C presence, which currently contributes about 15% to its business, focusing primarily on online channels. The management also expressed confidence in moving to the main board of the stock exchange, potentially by September or October 2027, subject to meeting eligibility criteria.

Signoria Creation Limited reported a 45.13% rise in consolidated net profit to ₹438.07 lakh for the financial year ended March 31, 2026, compared to ₹301.84 lakh in the previous year. Revenue from operations increased 81.33% to ₹4,930.39 lakh from ₹2,718.98 lakh in FY25, driven by robust business activity and strong execution. The company’s Board approved the audited standalone and consolidated financial results at a meeting held on May 27, 2026.

Financial Performance

The growth in profitability was supported by improved operational efficiency and a broad-based increase in income. Total income for the year stood at ₹4,930.96 lakh, up from ₹2,722.02 lakh in the prior year. EBITDA increased by approximately 59.57% to ₹844.66 lakh. Earnings per share (EPS) for the full year improved to ₹8.80 from ₹6.34 in the previous year. For the half-year ended March 31, 2026, the company recorded a profit of ₹236.22 lakh.

Operational Metrics

Expenses for the year totaled ₹4,334.49 lakh, an increase from ₹2,316.00 lakh in FY25, primarily due to higher material costs and operational expansion. The company maintained a strong balance sheet with total assets of ₹6,830.39 lakh as of March 31, 2026, compared to ₹4,294.68 lakh a year earlier. Cash and cash equivalents improved to ₹25.37 lakh from ₹7.27 lakh.

Strategic Developments

A key milestone during the year was the strategic acquisition of Herbal Prints Pvt. Ltd., strengthening backward integration and the manufacturing ecosystem. The company expanded its production capacity through the installation of 200 additional machines, achieving sales growth of approximately 82.87% compared to the previous financial year. Signoria was also recognized among the “Top 50 Manufacturers” at the Jaipur Garment Club Association Exhibition 2026.

Auditor and Governance Appointments

M/s Vinod Singhal & Co. LLP, Statutory Auditors, issued an unmodified opinion on the audited standalone and consolidated financial results. In governance decisions, the Board re-appointed M/s S.K. Joshi & Associates as Secretarial Auditor and M/s AJMK & Associates as Internal Auditor for the financial year 2026-27. The trading window for designated persons, which closed on April 1, 2026, will remain closed until 48 hours after the announcement of the financial results.

Consolidated Financial Results for FY26