Active Clothing Co , a leading integrated design-to-shelf apparel manufacturing platform, has reported a strong performance for the first half of fiscal year 2026, with significant expansion plans underway.

Financial Highlights

The company announced robust financial results for H1 FY2026:

The company's operating cash flow improved to Rs. 8.16 Crores, driven by disciplined working capital management and continued focus on operational efficiencies.

Strategic Partnership and Expansion

Active Clothing has entered into a long-term partnership with Ningbo Shipping Company Limited, the world's largest manufacturer of computerized flat knitting machines. This collaboration aims to create India's first knit-to-shape smart knitting factory:

• Addition of 600 advanced knitting machines over three years
• Total project cost estimated between Rs. 150-200 Crores
• Machinery supplier to provide financing with a five-year deferred payment plan
• Expected to enhance capability and scale, particularly in the sweater vertical

Operational Updates

• The company currently supplies to 38 countries
• Ongoing Rs. 60 Crores expansion project, expected to be operational in two months
• Exploring new markets, particularly in Europe, to diversify from the American market
• Implementation of 3D designing and virtual sampling processes to shorten turnaround times

Market Challenges and Outlook

Active Clothing faces challenges from disruptions in the American market, which have affected the apparel industry. However, the company remains optimistic about its growth prospects:

• Targeting new clients and increased business with existing customers post-expansion
• In talks with potential new customers like Primark and Marks & Spencer
• Focus on automation, sustainability, and reduced wastage in manufacturing processes

Management Commentary

Rajesh Mehra, Managing Director of Active Clothing Company Limited, stated, "Our investments in technology, efficiency, and product development continue to reinforce our long-term platform for growth. As we move ahead, our focus remains on strengthening design-to-shelf capabilities, scaling smart manufacturing, expanding product categories, and deepening partnerships with leading global brands."

The company's strategic initiatives and robust financial performance position it well for future growth in the dynamic apparel manufacturing sector. Investors and stakeholders will be watching closely as Active Clothing continues to expand its capabilities and market reach.

Active Clothing Co , a leading integrated apparel manufacturer, has reported a strong financial performance for the first half of fiscal year 2026, along with a strategic initiative to enhance its manufacturing capabilities.

Financial Highlights

For H1FY26, Active Clothing reported:

• Total income of ₹147.66 crore, marking a 15.22% year-on-year growth
• Profit After Tax (PAT) of ₹4.93 crore, up 34.10% from the previous year
• PAT margin improvement to 3.34%, up from 2.87% in H1FY25
• Diluted Earnings Per Share (EPS) of ₹3.14, a 32.49% increase year-on-year

Q2FY26 Performance

The company's Q2FY26 results showed:

• Total income of ₹83.19 crore, a 1.93% increase from Q2FY25
• PAT of ₹2.79 crore, up 13.48% year-on-year
• PAT margin of 3.36%, compared to 3.02% in the same quarter last year

Strategic Partnership for Advanced Manufacturing

Active Clothing has announced a partnership to establish India's first 'Knit to Shape' Smart Knitting Factory. This initiative involves:

• Purchase of 600 advanced machines
• Integration of 3D seamless knitting, automation, and zero-waste production
• Enhanced design flexibility, productivity, and sustainability

Management Commentary

Rajesh Mehra, Managing Director of Active Clothing Co, stated, "We delivered a steady performance in Q2 despite a softer demand environment, with year-on-year growth supported by our integrated design-to-shelf model and the continued trust of our global brand partners."

Regarding the new factory initiative, Mehra added, "This investment reflects our approach of building capacity ahead of demand and aligning with evolving industry requirements."

Company Overview

Active Clothing Co specializes in flat-knitted sweaters, jackets, and circular-knitted apparel for global fashion brands. The company serves prominent clients such as Levi's, George, Pepe Jeans, ONLY, Jack & Jones, Vero Moda, Next, Skechers, and Adidas, among others.

Future Outlook

The company remains focused on enhancing efficiency, deepening customer relationships, and driving technology-led improvements across its operations. With its strategic investments and strong market position, Active Clothing Co is poised to capitalize on the growing demand in the apparel manufacturing sector.

Investors and stakeholders are advised to monitor the company's progress as it implements its expansion plans and navigates the evolving market conditions in the apparel industry.