Iris Clothings Q2 FY27 results: net profit up 23.3% to ₹5.08 crore, revenue up 40.3%

How did Iris Clothings perform in Q2 FY27?

Iris Clothings reported standalone revenue of ₹62.16 crore for Q2 FY27, the July–September 2026 quarter, against ₹44.32 crore in Q2 FY26 and ₹47.24 crore in Q1 FY27. Total income was ₹62.22 crore, up ₹17.88 crore from the year-ago quarter and ₹14.94 crore from the previous quarter. EBITDA was ₹9.41 crore, with an EBITDA margin of 15.1%, compared with ₹7.03 crore and 15.9% a year ago and ₹8.05 crore and 17.0% in Q1 FY27.

Profit before tax was ₹6.65 crore, up ₹1.20 crore from ₹5.45 crore in Q2 FY26 and ₹1.27 crore from ₹5.38 crore in the previous quarter. After tax of ₹1.57 crore, net profit was ₹5.08 crore, against ₹4.12 crore a year ago and ₹4.01 crore in Q1 FY27. Basic EPS was ₹0.27, compared with ₹0.44 in Q2 FY26 and ₹0.21 in the previous quarter. The results are on a standalone basis.

What changed in Iris Clothings' costs and profit?

Total expenses rose ₹16.68 crore from ₹38.89 crore in Q2 FY26 to ₹55.57 crore in Q2 FY27. Cost of materials consumed was ₹24.80 crore, up ₹7.28 crore from ₹17.52 crore, and employee cost was ₹9.05 crore, up ₹3.20 crore from ₹5.85 crore. Other expenses were ₹6.78 crore, up ₹2.78 crore from ₹4 crore, depreciation ₹1.86 crore against ₹1.10 crore, and finance costs ₹0.96 crore against ₹0.49 crore.

Other income was ₹0.06 crore against ₹0.02 crore a year ago, a rise of ₹0.04 crore. There was no exceptional item in the quarter. Tax was ₹1.57 crore, up ₹0.23 crore from ₹1.34 crore. As a result, the EBITDA margin narrowed 0.8 percentage points to 15.1% and the profit margin narrowed 1.1 percentage points to 8.2%. On the earnings call, management said Q2 growth was primarily from volume because of expansion in product categories and production capacities.

How did the first half of FY27 go?

For the first half of FY27, revenue was ₹109.4 crore, up 33.9% from ₹81.72 crore in H1 FY26, and total income was ₹109.51 crore against ₹81.77 crore. Profit before tax rose to ₹12.03 crore from ₹9.09 crore, and net profit rose to ₹9.09 crore from ₹6.75 crore, an increase of 34.7%. EPS for the half year was ₹0.48, against ₹0.72 in H1 FY26.

What do the balance sheet and cash flow show?

Total assets rose to ₹270.46 crore at 30 September 2026 from ₹203.72 crore at 31 March 2026, and total equity was ₹183.07 crore against ₹141.76 crore. Borrowings were ₹42.12 crore, up from ₹20.06 crore, while cash was ₹0.28 crore against ₹0.18 crore. Inventories were ₹94.96 crore against ₹76.01 crore, trade receivables ₹61.11 crore against ₹72.29 crore, and trade payables ₹26.87 crore against ₹24.68 crore.

In the first half, net cash used in operating activities was ₹16.13 crore, compared with ₹13.57 crore in H1 FY26. Investing outflow was ₹2.92 crore against ₹2.82 crore, and financing inflow was ₹19.15 crore against ₹16.39 crore. Capital expenditure was ₹2.93 crore against ₹2.83 crore. On the earnings call, management said the operating cash flow reflected the Infinia transaction, which was not complete and would eventually move to investing cash flow.

How has Iris Clothings done over the last 8 quarters?

Revenue rose in each of the last six quarters on a year-on-year basis and profit rose year-on-year in each of the last eight quarters. Q2 FY27 revenue of ₹62.16 crore was the highest in the eight-quarter series shown, ahead of ₹60.48 crore in Q4 FY26, while net profit of ₹5.08 crore was below the ₹6.43 crore reported in Q4 FY26. The EBITDA margin was 15.1%, above the 12.4% low of Q3 FY26 but below the 20.2% peak of Q4 FY25.

After revenue of ₹48.67 crore and a profit of ₹3.01 crore in Q3 FY26, revenue rose to ₹60.48 crore in Q4 FY26 and then eased to ₹47.24 crore in Q1 FY27 before rising to ₹62.16 crore in Q2 FY27. The margin moved from 12.4% in Q3 FY26 to 17.9% in Q4 FY26, 17.0% in Q1 FY27 and 15.1% in Q2 FY27.

What else did the company announce?

The board met on 27 October 2026 and approved the unaudited financial results for the quarter and half year ended 30 September 2026, along with the limited review report. The meeting began at 11:00 a.m. and concluded at 12:40 noon. AMK & Associates reviewed the results under SRE 2410 and said nothing had come to its attention that caused it to believe the information was not disclosed as required.

On the same day, the company filed a presentation titled 'IRIS presents Vision 2030 retail expansion after strong first-half FY27 growth'. It set out plans to go direct to consumers, including a brand-owned website, marketplace listings, and exclusive brand outlets, with a plan to expand to 300 distributors and 300+ established brand outlets. The presentation also described a planned greenfield facility of 200,000 sq. ft. in West Bengal at an estimated capital outlay of Rs. 50 crores.

What did Iris Clothings' management say?

Management said on the earnings call that revenue of around INR500 crores is targeted over the next two years. Harsh Vardhan Sarda said infant wear currently represents 12-13% of sales and is targeted to expand to around 20% within the next couple of quarters, with a dedicated infant plant targeting 2,500 pieces a day and INR3-4 crores of added annual revenue. Woven apparel is targeted at around 10% of revenue by end-FY28.

Management said digital sales currently contribute about INR10 crores, or 10% of overall revenue, and are expected to grow over the next 1-1.5 years. Advertising spend was planned to rise from about 2% to around 3.5% of overall revenue by FY27-end. For FY27, management said some basis-point margin improvement is expected for the full year despite higher raw-material prices, which it said are constraining margin growth.

On priorities, management said the company is expanding distribution reach, strengthening manufacturing capabilities and exploring domestic and international markets, with an agreement to sell DOREME products on Amazon, a partnership with Myntra, and quick commerce presence in Bengaluru and Hyderabad through Big Basket. On risks, management said the expansion pace and operating model for EBO stores have not been finalised, and greenfield capex, working-capital needs and funding details were deferred to the next quarter.

How did Iris Clothings shares react?

The filing appeared during market hours. From the price when the filing appeared, the stock was unchanged after 5 minutes, then fell 2.6% after 15 minutes and 2.9% after 30 minutes. It closed the reaction day 0.1% below its previous close of ₹57.06, and by the next day's close it was down 1.8% from that pre-results close. By the fifth session it was down 1.7% from the same close.

The Garments & Apparels industry rose 0.8% on the reaction day and 0.9% by the next day's close, so Iris Clothings lagged the sector median by 0.9 percentage points on the day and 2.7 percentage points by the next day, and by 4.4 percentage points over five sessions. Earlier results-day moves were mixed, including 2.1% on 27 July 2026, 3.1% on 2 February 2026 and 1.9% on 13 May 2024.

How did other Garments & Apparels companies do?

Ten Garments & Apparels companies that have filed this quarter were compared with Iris Clothings. Their median revenue growth was 14.3%, against Iris Clothings' 40.3% revenue growth in Q2 FY27. Of the peers compared, six grew slower than the company and four grew faster. Of the eight peers for which profit was compared, six reported higher profit.