Financial Performance Highlights

Q4 FY26 Standalone Results:

  • Total Income: ₹871 crores (16.1% YoY growth from ₹750 crores in Q4 FY25)
  • EBITDA: ₹152 crores (21% YoY growth from ₹125 crores in Q4 FY25)
  • EBITDA Margin: 17.4%
  • PAT: ₹95 crores (30.6% YoY growth)
  • PAT Margin: 10.9%

Full Year FY26 Standalone Results:

  • Total Income: ₹2,653 crores (15.5% YoY growth from ₹2,296 crores in FY25)
  • Revenue crossed ₹2,500 crore milestone
  • PBT: ₹300+ crores
  • PAT: ₹228 crores (14.8% YoY growth from ₹199 crores in FY25)
  • PAT Margin: 8.6%
  • EBITDA: ₹413 crores (17.1% YoY growth from ₹353 crores in FY25)
  • EBITDA Margin: 15.6%

Revenue Mix FY26:

  • Fabric: 80%
  • Garments: 15%
  • Others: 5%

Dividend Declaration

Board approved:

  • Special interim dividend: ₹4 per equity share
  • Final dividend: ₹5 per equity share
  • Total dividend for FY26: ₹16 per equity share of face value ₹2 each

Retail Business Update

Current Status:

  • Total stores: 44 (27 ZECODE + 17 DEVO)

Expansion Plans:

  • Target: 70 stores by end of FY27
  • Capex allocation for retail expansion: ₹40 crores
  • Geographic expansion planned for Chennai, Tamil Nadu, Hyderabad, and South Maharashtra

Business Performance:

  • Retail business still in nascent stage
  • Some ZECODE stores already EBITDA positive
  • Focus on operational efficiency before aggressive expansion
  • Advertising spend guidance: 4-5% of revenue

Residential Project Announcement

  • Location: Dombivli
  • Built-up area: 77,000 square feet
  • Construction start: June 2026
  • Estimated completion timeline: 24 months
  • Total estimated expense: ₹60 crores (including land cost)
  • Estimated revenue: ₹80 crores
  • FY27 spend: ₹25 crores
  • Revenue recognition: Project completion basis (within 24 months)
  • One-off project using existing land parcel on balance sheet

Capex Guidance for FY27

  • Maintenance capex: ₹50-60 crores (annual recurring)
  • Retail expansion capex: ₹40 crores
  • Total capex: ₹100-110 crores
  • Real estate project spend: ₹25 crores in FY27 (not part of capex)

Financial Guidance

  • FY27 revenue growth: ~12%
  • EBITDA margin guidance: ~14% (including 150 bps impact from retail business)
  • Export contribution: Stable at ~10% of revenue

Operational Metrics

  • Inventory days: ~135-138 days (similar to previous year)
  • Inventory increase attributed to new store openings (₹60-70 lakhs inventory per store) and made-to-stock model

Other Income Details (FY26)

  • Interest received: ₹27 crores
  • Profit on sale of assets: ₹21 crores
  • Market gain on investments: ₹12.73 crores
  • Capital subsidy received: ₹5.31 crores

Preferential Issue Update

  • NCLT final hearing completed on 16th April 2026
  • Final order expected by first week of June 2026
  • RPS issuance expected 3-4 months after order receipt

Market Context

  • Gradual improvement in consumer demand despite challenging macroeconomic environment
  • Supported by income tax relief measures and wedding/festive season spending
  • Challenges from elevated input costs, logistics costs, inflationary pressures, and geopolitical conditions
  • Fabric business growth: ~10% volume, ~11% value
  • Garment business growth: ~9% volume, ~8% value (excluding retail)

Cash Flow

  • Operating net cash flow: ~₹150 crores
  • Cash flow impacted by inventory build-up and debtors increase due to strong Q4 performance and retail expansion

Management Commentary

  • Focus on disciplined execution and market presence strengthening
  • Diversified product portfolio and distribution network providing resilience
  • Commitment to sustainable growth, operational efficiencies, and healthy margins
  • Confidence in long-term growth prospects despite macroeconomic uncertainties