Q2 2026 Iris Clothings Ltd Earnings Call Transcript
Key Points
- Iris Clothings Ltd (NSE:IRISDOREME) reported a healthy top-line growth in Q2 FY26, reflecting successful strategic initiatives.
- The company expanded its distributor network by adding eight new distributors, increasing the total to 202, enhancing market footprint.
- A new collection of travel Co-Ord sets for kids received an overwhelming market response, strengthening the product portfolio.
- Transitioned ERP system from Tally to SAP Business One, expected to enhance operational efficiency and support growth ambitions.
- Plans to expand production capacity to 38,000 pieces per day and introduce new product lines, indicating a commitment to innovation and quality.
- EBITDA margin decreased to 15.9% in Q2 FY26 from 19.5% in the previous year, primarily due to investments in growth initiatives.
- Profit margins were affected by changes in raw material prices and product mix, leading to a moderation in expected margins.
- The company revised its revenue growth guidance for FY26, indicating a potential slowdown due to unstable market conditions.
- No new Exclusive Brand Outlets (EBOs) were opened in H1 FY26 despite earlier guidance, indicating delays in expansion plans.
- The export market contribution remains low, with only 4% to 5% of total revenue expected from cloth exports this year.
Ladies and gentlemen, good day, and welcome to the Q2 and H1 FY26 earnings conference call for Iris Clothings Limited. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Harshvardhan Sarda, Business Head. Thank you, and over to you, sir.
Thank you, everyone. Good afternoon, and thank you for joining our earnings call for the second quarter and first half of fiscal year 2025-'26. We appreciate your presence as we review the company's performance for this period.
I'm pleased to report that during Q2, Iris Clothings has delivered healthy top line growth. This performance reflects the success of our strategic initiatives, thoughtfully planned and effectively executed by our dedicated team. We anticipate that the upcoming winter season will serve as an additional growth catalyst, positioning us to achieve strong results in the next quarter of FY26. We remain confident in our ability to sustain growth while preserving
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