Iris Clothings Q2 Revenue Jumps 40.3% YoY

The event was a Q2 and H1 FY '27 Earnings Conference Call held on October 28, 2026.
Management participants included Mr. Harsh Vardhan Sarda, Business Head, and Mr. Niraj Agarwal, Chief Financial Officer.
The purpose was to discuss the company's quarterly results, strategic initiatives, and financial performance.

Q2 FY27 Performance: Total income grew 40.3% YoY to ₹62.22 crores (from ₹44.35 crores in Q2 FY26). Net Profit increased 23.3% YoY to ₹5.08 crores. EBITDA was ₹9.47 crores with a margin of 15.2%.
H1 FY27 Performance: Total income grew 33.9% YoY to ₹1,095.51 crores. PAT increased 34.7% to ₹9.09 crores. EBITDA reached ₹17.57 crores with a margin of 16% (vs. 15.1% in H1 FY26). PAT margins were 8.2% for Q2 and 8.3% for H1.

Digital Expansion: Entered into agreements to sell DOREME products on Amazon and partnered with Myntra. Entered the quick commerce segment in Bengaluru and Hyderabad via Big Basket. Digital revenue currently contributes ~10% of overall revenue.
Product Expansion: Launched newborn gift sets in 4-piece and 6-piece formats. Infant wear segment contributes 12-13% of revenue, targeted to reach 20% in coming quarters. Woven apparel expected to become ~10% of revenue by end of next year.
Manufacturing Initiatives: Setting up a dedicated infant wear manufacturing facility with a capacity of 2,500 pieces per day, expected to generate additional annual revenue of ₹3-4 crores. Commenced operations at a new in-house embroidery unit with machines imported from Japan.
International Exploration: Participated in the Saudi Fashion and Tex Expo to explore opportunities in the Middle East and Africa.
Financial Targets: Aiming to reach revenue of ₹500 crores in the next 2 years. Advertising spend is currently 2% of revenue, intended to increase to 3.5% by year-end.

Growth in Q2 was primarily volume-driven due to expansion in product categories and production capacities.
~15% of revenue is outsourced, with slightly lower gross margins on those products.
For Exclusive Brand Outlets (EBOs), good revenue is ₹1,000 per square foot per month, with store-level EBITDA margins of 15-20% and capex of ₹2,500-3,000 per square foot.
Average revenue per distributor is ~₹80 lakhs.
The company differentiates itself from value retailers through quality, design, and product resilience.
Operating cash flow is expected to turn positive in the current quarter; recent negative flow was due to an incomplete Infinia transaction.