Iris Clothings Ltd (IRISDOREME) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Your passcode has been confirmed. Please wait while you are joined to the conference. The conference is now being recorded.
Moderator: Ladies and gentlemen, good day, and welcome to Iris Clothings Limited Q2 and H1 FY27 earnings conference call. Please note that some of the statements made in today's discussion may be forward looking in nature and may involve risks and uncertainties. Documents relating to company's financial performance is available to the stock exchange. Trust you have been able to go through them. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing "*" then "0" on your touch-tone phone.
Moderator: Note that this conference is being recorded. I now hand over the conference over to Mr. Harshwardhan Sarda. Thank you and over to you, sir.
Harshwardhan Sarda (Iris Clothings Ltd): Good morning everyone. Thank you for joining us today for our Q2 and H1 FY '27 earnings call. Over the past years we have continued to build on our business fundamentals while focusing on expanding our market presence and strengthening our capabilities. Our aim has been to create a stronger foundation for sustainable growth by investing in our brand, distribution network and operational infrastructure. We have seen encouraging business momentum during the quarter with total income growing 40.3% year-on-year and net profit increasing 23.3% in Q2 FY '27. Alongside this performance, we have continued to make progress on several initiatives that we believe will support the next phase of growth for Iris Clothings and the DOREME brand. Our key priorities are to expand our distribution reach, strengthen our manufacturing capabilities and explore new growth opportunities across domestic and international markets. On the digital front, we see e-commerce as an important channel for reaching a wider consumer base and enhancing DOREME's visibility in the children's apparel segment. In line with this, we have entered into an agreement to sell DOREME products on Amazon and have also partnered with Myntra. These partnerships will strengthen our presence across leading online marketplaces and complement our existing distribution network. We have also entered the quick commerce segment, initially offering our products in Bengaluru and Hyderabad. In In addition, we have launched newborn gift sets in four piece, six piece formats across multiple sales channels, expanding our offerings in the newborn category. Together, these initiatives will help us broaden our product reach, diversify our sales channels and make DOREME products more accessible to our customers. Alongside expanding our distribution, we are also investing in manufacturing capabilities to support our growing product portfolio, particularly for the infant wear segment. We are setting up a dedicated manufacturing facility for infant wear, which is expected to enhance production capacity and provide greater operational flexibility. This will help us cater more effectively to our evolving demand and support future product expansion. We have also commenced operations at a new in-house embroidery unit equipped with machines imported from Japan. This capability will enable us to develop premium embroidered collections, adding further depth to our product offerings and strengthening our manufacturing capabilities. Beyond the domestic market, we are also exploring opportunities to expand DOREME's presence internationally. Our participation in the Saudi Fashion & Tex Expo provided a platform to showcase our products and engage with potential large-format retailers, wholesalers and distribution partners. These interactions have helped us explore market requirements and assess opportunities across the Middle East and Africa. Our approach will remain measured with a focus on identifying suitable partners and establishing sustainable distribution channels. Taken together, these initiatives reflect our focus on building a stronger brand, expanding our product offerings and creating multiple avenues for growth. As we move ahead, our priority will be to execute these plans effectively while maintaining operational efficiency and a strong emphasis on profitable growth. We believe these efforts will strengthen Iris Clothings' position in the children's apparel segment and provide a solid foundation for its next phase of growth. Thank you. I will now hand over the call to Niraj Agarwal, our Chief Financial Officer, who will take you through the financial performance for Q2 and H1 FY '27.
Niraj Agarwal (Iris Clothings Ltd): Thank you, Harsh. Good morning everyone and thank you for joining us today. I will take you through our financial performance of for Q2 and H1 FY '27. We delivered strong revenue growth during the quarter with total income increasing 40.3% year-on-year to ₹62.22 crores compared with ₹44.35 crores in Q2 FY '26. For H1 FY '27 total income grew 33.9% year-on-year to ₹109.51
Niraj Agarwal (Iris Clothings Ltd): reflecting continued business momentum. Our EBITDA stood at Rs. 9.47 crores for Q2 FY27 with an EBITDA margin of 15.2%. For H1 FY27, EBITDA reached Rs. 17.57 crores with margins improving to 16% compared with 15.1% in the corresponding period last year. This reflects an improvement in our operating profitability over the first half. Moving to the bottom line profit after tax grew 23.3% year-on-year to Rs. 5.08 crores in Q2 FY27. For H1 FY27, PAT increased 34.7% to Rs. 9.09 crores. PAT margin stood at 8.2% for the quarter and 8.3% for the first half. Overall, our financial performance reflects healthy revenue growth alongside improved first half profitability. Going forward, we will continue to focus on strengthening our operating efficiency, expanding our market presence and pursuing sustainable, profitable growth. With this, we can now open the floor for questions. Thank you.
Moderator: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touch tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Vidhi Shah, an individual investor. Please go ahead.
Vidhi Shah: Hi, thank you for the opportunity and congratulations on the good good quarter. So I had a question with the company expanding its presence across the e-commerce platforms such as Amazon and it's recently entered into quick commerce in Bengaluru and Hyderabad. Could you elaborate on the overall strategy for growing the DOREME brand online?
Harshwardhan Sarda (Iris Clothings Ltd): Hi Vidhi, thank you so much for your question. So see, the idea is to build the brand. So we have been in the e-commerce segment for the last three, four years in partnership with FirstCry where we have established a decent presence on online. Now we are, you know, expanding that presence across categories. So we are growing our own segment, our own website doreme.in. Along with that we are partnering with we have just partnered with Amazon. We are closing a deal with Myntra and along with that we have quick commerce presence as well. So we have started our partnership with BigBasket and we are looking to expand our product categories to multiple e-com quick commerce platforms as well. That is the overall strategy of how we want to create the brand DOREME online and take it across multiple marketplaces and channels.
Vidhi Shah: Okay, so how has been the response across these channels so far?
Harshwardhan Sarda (Iris Clothings Ltd): The response has been incredible and we see some very encouraging numbers which we think will grow over the next one, one and a half years.
Vidhi Shah: Okay and do we have any plans to expand into additional cities and platforms?
88 more turns of this transcript: log in to Stocksigma to read the full call.