Celebrity Fashions Q2 FY26 results: net loss narrows to ₹3.95 crore, revenue up 8.1%

How did Celebrity Fashions perform in Q2 FY26?

Standalone revenue for the July–September 2025 quarter was ₹42.52 crore, up ₹3.17 crore or 8.1% from ₹39.35 crore in Q2 FY25 and up ₹1.85 crore or 4.5% from ₹40.67 crore in Q1 FY26. EBITDA was negative ₹1.62 crore, compared with negative ₹1.44 crore in Q2 FY25 and negative ₹4.19 crore in Q1 FY26. The EBITDA margin was -3.8%, against -3.7% and -10.3%, respectively.

Celebrity Fashions reported a net loss of ₹3.95 crore in Q2 FY26, compared with a net loss of ₹4.18 crore in Q2 FY25 and ₹6.73 crore in Q1 FY26. Basic EPS was ₹0.66, compared with ₹0.74 and ₹1.13, respectively. The filing presents standalone unaudited results; no consolidated figures were provided.

What changed in Celebrity Fashions' costs and profit?

Total expenses were ₹46.55 crore in Q2 FY26, up ₹3.02 crore or 6.9% from ₹43.53 crore in Q2 FY25. Cost of materials consumed rose ₹6.66 crore or 52.7% to ₹19.29 crore, employee benefit expense increased ₹0.54 crore or 3.5% to ₹16.04 crore, and finance cost rose ₹0.26 crore or 22.4% to ₹1.42 crore. Depreciation and amortisation fell ₹0.59 crore or 37.3% to ₹0.99 crore, while other expenses declined ₹0.22 crore or 2.8% to ₹7.71 crore.

Other income was ₹0.08 crore, compared with no other income in Q2 FY25, while tax expense was unchanged at ₹0 crore. There was no exceptional item in either quarter. The filing does not state reasons for the changes in the cost lines, so the figures show the movement without assigning a cause. Against Q1 FY26, total expenses were lower by ₹0.88 crore, and the net loss narrowed by ₹2.78 crore.

How did the first half of FY26 go?

For H1 FY26, standalone revenue was ₹83.19 crore, up ₹7.60 crore or 10.1% from ₹75.59 crore in H1 FY25. Total income rose ₹7.71 crore or 10.2% to ₹83.30 crore from ₹75.59 crore. The loss before tax and the net loss were both ₹10.68 crore, compared with ₹12.74 crore in H1 FY25, while basic EPS was ₹1.79 compared with ₹2.25.

The filing shows no tax expense and no exceptional item for either half-year period. The results were approved by the board on 10 November 2025 as unaudited financial statements prepared under Indian Accounting Standards, including the limited review report of the auditors.

What do the balance sheet and cash flow show?

At 30 September 2025, total assets were ₹110.48 crore, compared with ₹147.03 crore at 31 March 2025. Total equity was ₹9.87 crore, compared with ₹20.55 crore, while borrowings were ₹47.60 crore, compared with ₹58.38 crore. Cash and cash equivalents were ₹0.38 crore, compared with ₹0.37 crore; inventories fell from ₹47.54 crore to ₹37.94 crore and trade receivables from ₹53.11 crore to ₹19.56 crore.

For H1 FY26, operating cash flow was ₹23.02 crore, compared with ₹19.88 crore in H1 FY25. Investing cash flow was negative ₹8.04 crore, compared with negative ₹4.63 crore, and financing cash flow was negative ₹14.97 crore, compared with negative ₹15.21 crore. Capital expenditure was ₹0.14 crore, against ₹0.15 crore a year earlier.

How has Celebrity Fashions done over the last 8 quarters?

Revenue reached its highest level in the provided series at ₹94.47 crore in Q4 FY24 and its lowest at ₹36.24 crore in Q1 FY25. It then moved to ₹39.35 crore in Q2 FY25, ₹38.16 crore in Q3 FY25 and ₹51.51 crore in Q4 FY25, before reporting ₹40.67 crore in Q1 FY26 and ₹42.52 crore in Q2 FY26. Revenue rose year on year in each of the last two quarters.

The highest EBITDA margin in the series was 6.8% in Q3 FY24, while the lowest was -16.1% in Q1 FY25. The margin was -3.8% in Q2 FY26, compared with -10.3% in Q1 FY26. The net loss improved from ₹6.73 crore in Q1 FY26 to ₹3.95 crore in Q2 FY26, although the net loss bottomed at ₹8.56 crore in Q1 FY25 across the period shown.

What did the auditors point out?

The independent auditor described a “Material Uncertainty Related to Going Concern”, noting accumulated losses of Rs. 49.81 crores as of September 30, 2025. After evaluating the going-concern concept in accordance with SA-570, the auditor reported that sufficient evidence had been obtained to establish the Company’s continuance as a going concern and that the financial statements had been prepared on that basis. The auditor stated: “Our conclusion is not modified in respect of this matter.”

The review report said that nothing came to the auditor’s attention that caused it to believe the accompanying statement had failed to disclose the required information or contained a material misstatement. The auditor noted that a review is substantially less in scope than an audit and does not provide the same assurance, so it did not express an audit opinion.

How did Celebrity Fashions shares react?

After the filing appeared, the stock was unchanged in the first 15 minutes and fell 0.9% after 30 minutes. It closed the reaction day 0.8% below the previous close, was also down 0.8% by the next day’s close, and was down 1.5% by the fifth session’s close, measured cumulatively from the pre-results close. The one-month move was -19.3%.

How did other Garments & Apparels companies do?

Among 34 other Garments & Apparels companies, the median revenue growth was 9.2%. Fifteen peers grew slower than Celebrity Fashions, while 19 grew faster. Nineteen of the 34 peers reported higher profit, based on the period available in the peer comparison as of 5 November 2026.