Faze Three Limited Reports Q3FY26 Results with 29% Revenue Growth Despite Margin Pressures
Faze Three Limited's Q3FY26 results show strong revenue growth of 28.7% to ₹229.3 crores, driven by robust export demand despite US tariff headwinds. However, profitability faced pressure with PAT declining 28.1% to ₹6.4 crores and margins compressing due to tariff impacts. The company's nine-month revenue of ₹652.4 crores represents 35% growth, surpassing initial guidance.

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Faze Three Limited has released its unaudited financial results for the third quarter ended December 31, 2025, showcasing strong revenue growth despite challenging market conditions and margin pressures.
Financial Performance Highlights
The company's consolidated financial results demonstrate robust growth momentum in revenue while facing profitability challenges:
| Metric | Q3 FY26 | Q3 FY25 | Change (%) |
|---|---|---|---|
| Total Income | ₹229.3 crores | ₹178.2 crores | +28.7% |
| EBITDA | ₹20.99 crores | ₹21.92 crores | -4.2% |
| EBITDA Margin | 9.15% | 12.30% | -315 bps |
| PAT | ₹6.4 crores | ₹8.9 crores | -28.1% |
| PAT Margin | 2.8% | 5.0% | -220 bps |
For the nine months ended December 31, 2025, consolidated revenue reached ₹652.4 crores compared to ₹483.5 crores in the corresponding period of FY25, representing a significant 35% growth that exceeded the company's initial guidance of 22-25%.
Business Performance and Market Position
Faze Three Limited, established in 1985 and listed in 1995, operates as a manufacturer of technical and home textiles with over 90% revenue from exports. The company serves major retailers in the USA (65% of revenue), UK, and European markets through eight factory locations across Silvassa, Vapi, Panipat, and Aurangabad.
| Business Parameter | Details |
|---|---|
| Export Revenue Share | Over 90% |
| USA Market Share | 65% of total revenue |
| Factory Locations | 8 facilities across 4 states |
| Product Categories | Technical & Home Textiles, Floor Coverings |
| Customer Base | Top 12 customers contribute ~80% revenue |
Tariff Impact and Future Outlook
The company faced margin pressures during the current fiscal due to punitive tariffs imposed on India by the USA, with current tariffs standing at 18% for India versus 35-44% for China. Management highlighted that despite these challenges, the strong revenue growth demonstrates the strength of long-term customer relationships.
Expansion and Investment Updates
Faze Three has invested over ₹300 crores from internal accruals since FY2019 across various expansion initiatives:
| Investment Area | Capacity/Details |
|---|---|
| Silvassa Factory Expansion | Revenue capacity up to ₹500 crores (60% utilization) |
| Top of Bed & Blankets | Revenue capacity over ₹450 crores (50% utilization) |
| Panipat Expansion | Revenue capacity over ₹550 crores (50% utilization) |
| Mats and More Subsidiary | Revenue capacity ₹150 crores (30% utilization) |
| Green Energy Initiatives | ₹25 crores for 3.5 MW solar and clean energy |
Credit Rating and Recognition
CARE Ratings reaffirmed the company's credit rating at A (stable)/A1 in September 2025. Additionally, Faze Three Limited received the Dun & Bradstreet "Business Enterprises of Tomorrow 2025" award in the Best Global Business (Mid-Corporate) category.
The company expects continued high growth momentum in FY27, supported by favorable trade policies and free trade agreements with the USA, EU, and UK that are expected to provide incremental benefits over the next 1-2 years.
Historical Stock Returns for Faze Three
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.08% | -2.07% | -19.13% | -12.93% | +24.48% | +46.82% |































