Zodiac Clothing Company Limited has filed its 42nd annual report for the financial year 2025-26 with the National Stock Exchange of India Ltd and BSE Limited. The disclosure was made on September 7, 2026, pursuant to Regulation 34 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The company confirmed that the annual report and other statutory reports are now available on its official website. Kumar Iyer, the Company Secretary, signed the communication to take the exchange on record.

Zodiac Clothing Company Limited ( Zodiac Clothing ) reported a consolidated net loss of ₹893.14 lakh for the first quarter of FY27 (ended June 30, 2026), a slight improvement from the ₹931.99 lakh loss recorded in the corresponding period of FY26. However, the company’s topline contracted significantly, with consolidated revenue from operations falling 14.8% year-on-year to ₹3,330.61 lakh from ₹3,909.89 lakh.

The decline in revenue was broad-based, affecting both geographical segments. Domestic revenue within India dropped 10% to ₹1,618.22 lakh, while overseas revenue fell 19% to ₹1,712.39 lakh. On a standalone basis, the company reported a net loss of ₹749.09 lakh, down from a loss of ₹862.77 lakh in Q1FY26. Standalone revenue stood at ₹3,309.43 lakh, a 15.2% decline from the previous year’s ₹3,902.78 lakh.

Financial Performance Details

Despite the revenue contraction, the company managed to reduce its pre-tax loss slightly on a consolidated basis. The consolidated loss before tax was ₹937.36 lakh, compared to ₹913.15 lakh in Q1FY26. This was primarily due to higher total expenses of ₹4,497.57 lakh against total income of ₹3,560.21 lakh. In contrast, the standalone loss before tax improved to ₹794.01 lakh from ₹844.36 lakh in the prior year quarter.

On a standalone basis, other income declined to ₹203.18 lakh from ₹224.75 lakh in the previous year. Finance costs remained relatively stable at ₹236.98 lakh, while employee benefits expense decreased to ₹997.29 lakh from ₹1,170.24 lakh. Depreciation and amortisation expense rose slightly to ₹572.91 lakh from ₹534.91 lakh.

What the Numbers Show

A key divergence in the financial data is the performance of the international segment versus the domestic segment. While domestic revenue declined by 10%, international revenue suffered a sharper contraction of 19%. This suggests that the headwinds impacting Zodiac Clothing are more pronounced in its export markets, which historically have contributed a larger share to the top line (₹1,712.39 lakh vs ₹1,618.22 lakh in Q1FY27). The ability to control operating expenses, particularly employee benefits which fell by nearly 15% standalone, helped mitigate the impact of the revenue drop on the bottom line, resulting in a narrower net loss despite lower sales.

Corporate Developments

The Board of Directors approved the unaudited consolidated and standalone financial results in a meeting held on August 12, 2026. The statutory auditors, MSKA & Associates LLP, issued an unmodified conclusion on the standalone results. For the consolidated results, the auditors noted that they did not review the interim financial information of six subsidiaries, relying instead on reports from other auditors or management-certified information for these entities, which were deemed not material to the group.

Additionally, the company disclosed that Zela Technologies Inc., a subsidiary, has been voluntarily wound up with effect from July 31, 2026. The management stated that the subsidiary was not carrying on significant business operations and the winding-up is not expected to have a material impact on the group’s financial position.

The 42nd Annual General Meeting of the company is scheduled for September 30, 2026. Regarding funds raised through a preferential issue on January 16, 2026, the company confirmed there is no deviation or variation in the utilization of funds against the stated objects, as reviewed by the Audit Committee.