New Product Or Brand Launch
Expected: CurrentHIGH confidence
What: Revenue contribution: Decent contributor
“the travel coord-sets that we currently launched, that became a decent contributor to the overall revenue.”
Iris Clothings Ltd: Why Is It Outperforming Nifty 500?
ActiveRS +11.5%Weak4w Streak
In , Iris Clothings Ltd (Textiles - Readymade Apparel) is outperforming Nifty 500 with +11.5% relative strength. Fundamentals: Weak. On a 4-week streak.
Iris Clothings Ltd Key Facts
- PE Ratio
- 48.2x
- Market Cap
- ₹687 Cr
- PAT Growth YoY
- +27%
- Revenue Growth YoY
- +46%
- OPM
- 12.4%
- RS vs Nifty 500
- +11.5%
PE: Mid ContractionEmerging Opportunity
What's Happening
⏳Steady earner with flat PE — waiting for re-rate catalyst
💪Debt reduced 46% YoY — balance sheet strengthening
👔Promoter stake down 9.8% this quarter
💰Trading 55% above estimated fair value — significant premium
Earnings Acceleration Triggers
1. New Product Or Brand Launch
CurrentHIGH
2. Operating Leverage Inflection
Q4 FY26MEDIUM
3. Geographical Expansion
FY2027MEDIUM
Key Risks
1. Raw material price changes impacted margins in Q2 and Q3
MEDIUM2. Need to accumulate and train teams for new regional EBO expansions
LOWSector-Specific Signals
Total EBO Count7 stores
Total Distributors208
Production Capacity Utilisation70%
Infant Wear Revenue Contribution12%
Key Numbers
PAT Growth YoY
+27%
Stable
Revenue YoY
+46%
Inflection Up
Operating Margin
12.4%
-570 bps YoY
PE Ratio
48.2
Current Price
₹36
Fundamental Score
37/100
Weak
3Y PAT CAGR
+9%
Market Cap
711 Cr
Valuation
Significantly Overvalued12-Week Performance
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
12 weeks agoThis week
Why Are Iris Clothings Ltd's Earnings Accelerating?
Based on Q3 FY26 earnings • Updated Apr 19, 2026
Operating Leverage Inflection
Expected: Q4 FY26MEDIUM confidence
What: Capacity: 40,000 pieces/day
“we plan to expand our production capacity to 40,000 pieces per day and are very excited to introduce a whole new product range.”
Geographical Expansion
Expected: FY2027MEDIUM confidence
What: EBO count: 15-20 EBOs
“We are targeting cities like Hyderabad, Bangalore, Chennai. These are three cities which we are primarily targeting to open stores.”
Revenue growth of 46% YoY
MEDIUM confidence
What: Revenue growth of 46% YoY
“During the quarter, we reported a revenue growth of 46% year-on-year driven by product and distribution enhancements.”
What Are the Key Risks for Iris Clothings Ltd?
Earnings deceleration risks from management commentary
Raw material price changes impacted margins in Q2 and Q3
MEDIUMTrigger: Fluctuations in input costs for fabrics.
Management view: Focusing on manufacturing efficiency and raw material purchasing strategies.
Monitor: commodity
Need to accumulate and train teams for new regional EBO expansions
LOWTrigger: Expansion into new geographies requires local management and sales staff.
Management view: Delaying EBO expansion by a quarter to ensure proper team building.
Monitor: labor
What Is Iris Clothings Ltd's Management Saying?
Key quotes from recent conference calls
“But going forward, in the next couple of quarters, we look at margins being stabilized somewhere around 18% to 19%. [Previous EBITDA Margin guidance]”
“we guided earlier that we would be opening five to six new EBOs in FY’26 [Previous EBO Additions guidance]”
“from the overall online channel, including marketplace and our website, we expect around 10% contribution in the next month. [Initiative: D2C Website Enhancement]”
“embroidery is a very interesting value add... we are a fully integrated garment manufacturing unit with all capabilities possible. [Initiative: Embroidery Unit Integration]”
What Did Iris Clothings Ltd Report This Quarter?
Headline numbers from the latest earnings call
Revenue
₹487 million
YoY +46%QoQ +9.9%
Why: Growth was driven by a stronger winter season due to favorable weather and an interesting new product range.
Revenue growth significantly accelerated compared to the 7% YoY growth seen in Q2.
EBITDA
₹60.5 million
Margin 12.4%
Why: Margins were impacted by outsourcing new product lines like woven corsets and night suits, alongside costs for a large dealer conference.
EBITDA margin of 12.4% is a sharp decline from the 15.9% reported in Q2 FY26.
PAT
₹30.1 million
YoY +26.8%QoQ -26.6%
Why: Profit growth was sustained by improved scale of operations despite the moderation in operating margins.
While YoY growth remains positive, PAT declined sequentially from ₹41 million in Q2.
Other Highlights
• Expanded distributor network to 208 partners.
• Set up a state-of-the-art embroidery unit for in-house value addition.
• Expanded office space to strengthen the team for future growth.
What Sector Metrics Matter for Iris Clothings Ltd?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Total EBO Count
7 stores
QoQ 0
Why: Expansion delayed to focus on regional team building.
Total Distributors
208
QoQ +6
Why: Added eight new distributors during the quarter to expand market presence.
Production Capacity Utilisation
70%
Why: Utilized 28,000 pieces per day out of 40,000 capacity.
Infant Wear Revenue Contribution
12%
Why: Targeting to increase this to 20% over the next couple of years.
CAPEX per EBO
₹25 lakhs
Why: Based on ₹2,500 per sq ft for a 1,000 sq ft store.
EBITDA Margin
12.4%
QoQ -350 bps
Why: Impacted by outsourcing costs and dealer conference expenses.
Export Revenue Contribution
4-5%
Why: Export market remains stable.
Realization from MRP
50%
Why: Standard margin structure for distributors.
What Is Iris Clothings Ltd's Management Guidance?
Forward-looking targets from management for FY2027
Revenue Growth Target
42.5%
OPM Guidance
18–19%
Revenue Outlook
40-45%
Margin Outlook
Expected to return to 18% to 19% in Q4 FY26.
Capex Plan
₹25 lakhs per store
EBO expansion
Volume
Targeting 32,000 to 34,000 pieces per day in Q4.
Management Tone: BULLISH
Guidance Changes
LOWERED
EBO Additions FY26: 5 to 6 stores → Delayed by one quarter
How Fast Is Iris Clothings Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +46% | +9% | Inflection Up |
| PAT (Net Profit) | +27% | +9% | Stable |
| OPM | 12.4% | -570 bps | Volatile |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 19, 2026.
Other Top Textiles - Readymade Apparel Stocks Beating Nifty 500
Frequently Asked Questions: Iris Clothings Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What were Iris Clothings Ltd's latest quarterly results?
Iris Clothings Ltd's latest quarterly results (Dec 2025) show
- PAT Growth YoY: +27.0% (stable)
- Revenue Growth YoY: +45.8%
- Operating Margin: 12.4% (volatile)
Is Iris Clothings Ltd's profit growing or declining?
Iris Clothings Ltd's profit is growing with an stable trend.
- PAT Growth YoY: +27.0% (latest quarter)
- PAT Growth QoQ: -26.9% (sequential)
- 3-Year PAT CAGR: +9.1%
- Trend: Stable — consistent growth pattern
What is Iris Clothings Ltd's revenue growth trend?
Iris Clothings Ltd's revenue growth trend is turning around (inflection up).
- Revenue Growth YoY: +45.8%
- Revenue Growth QoQ: +9.8% (sequential)
- 3-Year Revenue CAGR: +9.4%
How is Iris Clothings Ltd's operating margin trending?
Iris Clothings Ltd's operating margin is volatile.
- Current OPM: 12.4%
- OPM Change YoY: -5.7% basis points
- OPM Change QoQ: -3.5% basis points
What is Iris Clothings Ltd's 3-year profit and revenue CAGR?
Iris Clothings Ltd's long-term compounding rates
- 3-Year Profit CAGR: +9.1%
- 3-Year Revenue CAGR: +9.4%
Is Iris Clothings Ltd's growth accelerating or decelerating?
Iris Clothings Ltd's earnings growth is stable with mixed signals on a sequential basis.
- YoY Acceleration: +19.7% bps
- Sequential Acceleration: -76.9% bps
- Margin Warning: Operating margins are under pressure
What is Iris Clothings Ltd's trailing twelve month (TTM) performance?
Iris Clothings Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹14 Cr
- TTM PAT Growth: +17.5% YoY
- TTM Revenue: ₹171 Cr
- TTM Revenue Growth: +15.1% YoY
- TTM Operating Margin: 15.5%
Is Iris Clothings Ltd overvalued or undervalued?
Iris Clothings Ltd appears significantly overvalued based on our fair value analysis.
- Valuation Signal: Significantly Overvalued
- Current PE: 48.2x
- Price-to-Book: 5.2x
What is Iris Clothings Ltd's current PE ratio?
Iris Clothings Ltd's current PE ratio is 48.2x.
- Current PE: 48.2x
- Market Cap: 687 Cr
How does Iris Clothings Ltd's valuation compare to its history?
Iris Clothings Ltd's current PE is 48.2x.
- Current PE: 48.2x
- Valuation Assessment: Significantly Overvalued
What is Iris Clothings Ltd's price-to-book ratio?
Iris Clothings Ltd's price-to-book ratio is 5.2x.
- Price-to-Book (P/B): 5.2x
- Book Value per Share: ₹7
- Current Price: ₹36
Is Iris Clothings Ltd a fundamentally strong company?
Iris Clothings Ltd is rated Weak with a fundamental score of 36.81/100. This score is calculated from objective financial metrics
- Revenue Growth YoY: +45.8% (10% weight)
- PAT Growth YoY: +27.0% (10% weight)
- PAT Growth QoQ: -26.9% (10% weight)
- Margins stable (10% weight)
Is Iris Clothings Ltd debt free?
Iris Clothings Ltd has a debt-to-equity ratio of N/A.
- Total Debt: ₹27 Cr
What is Iris Clothings Ltd's return on equity (ROE) and ROCE?
Iris Clothings Ltd's return ratios over recent years
- FY2023: ROCE 16.0%
- FY2024: ROCE 20.0%
- FY2025: ROCE 18.0%
Is Iris Clothings Ltd's cash flow positive?
Iris Clothings Ltd's operating cash flow is positive (FY2025).
- Cash from Operations (CFO): ₹3 Cr
- CFO/PAT Ratio: 23% (weak cash conversion)
What is Iris Clothings Ltd's dividend yield?
Iris Clothings Ltd currently does not pay a significant dividend (yield 0.00%).
- Dividend Yield: 0.00%
- Current Price: ₹36
Who holds Iris Clothings Ltd shares — promoters, FII, DII?
Iris Clothings Ltd's shareholding pattern (Mar 2026)
- Promoters: 61.2%
- FII (Foreign): 0.0%
- DII (Domestic): 0.8%
- Public: 38.0%
Is promoter holding increasing or decreasing in Iris Clothings Ltd?
Iris Clothings Ltd's promoter holding has remained stable recently.
- Current Promoter Holding: 61.2% (Mar 2026)
- Previous Quarter: 61.2% (Dec 2025)
- Change: 0.00% (stable)
How long has Iris Clothings Ltd been outperforming Nifty 500?
Iris Clothings Ltd has been outperforming Nifty 500 for 4 consecutive weeks, indicating building momentum.
Is Iris Clothings Ltd a new momentum entry or an established outperformer?
Iris Clothings Ltd is an established outperformer with 4 weeks of consecutive Nifty 500 outperformance.
What are the growth catalysts for Iris Clothings Ltd?
Iris Clothings Ltd has 4 key growth catalysts identified from recent earnings analysis
- New Product Or Brand Launch — New travel coord-sets and winter wear have driven significant top-line growth.
- Operating Leverage Inflection — Expansion of production capacity to 40,000 pieces will support higher volumes.
- Geographical Expansion — Targeting new cities like Hyderabad, Bangalore, and Chennai for store openings.
- Revenue growth of 46% YoY — Stronger winter demand and a successful new product range for the season.
What are the key risks in Iris Clothings Ltd?
Iris Clothings Ltd has 2 key risks worth monitoring
- [MEDIUM] Raw material price changes impacted margins in Q2 and Q3 — Fluctuations in input costs for fabrics.
- [LOW] Need to accumulate and train teams for new regional EBO expansions — Expansion into new geographies requires local management and sales staff.
What did Iris Clothings Ltd's management say in the latest earnings call?
In Q3 FY26, Iris Clothings Ltd's management highlighted
- "But going forward, in the next couple of quarters, we look at margins being stabilized somewhere around 18% to 19%. [Previous EBITDA Margin guidance]"
- "we guided earlier that we would be opening five to six new EBOs in FY’26 [Previous EBO Additions guidance]"
- "from the overall online channel, including marketplace and our website, we expect around 10% contribution in the next month. [Initiative: D2C Website..."
What is Iris Clothings Ltd's management guidance for growth?
Iris Clothings Ltd's management has provided the following forward guidance for FY2027
- Revenue growth target: 42.5%
- OPM guidance: 18–19%
- Capex plan: ₹25 lakhs per store for EBO expansion
- Management tone: bullish
- Milestone: [LOWERED] EBO Additions FY26: 5 to 6 stores → Delayed by one quarter
What sector-specific metrics matter most for Iris Clothings Ltd?
Iris Clothings Ltd's most important sub-sector-specific KPIs from the latest concall
- Total EBO Count: 7 stores (QoQ 0) — Expansion delayed to focus on regional team building.
- Total Distributors: 208 (QoQ +6) — Added eight new distributors during the quarter to expand market presence.
- Production Capacity Utilisation: 70% — Utilized 28,000 pieces per day out of 40,000 capacity.
- Infant Wear Revenue Contribution: 12% — Targeting to increase this to 20% over the next couple of years.
- CAPEX per EBO: ₹25 lakhs — Based on ₹2,500 per sq ft for a 1,000 sq ft store.
- EBITDA Margin: 12.4% (QoQ -350 bps) — Impacted by outsourcing costs and dealer conference expenses.
Is Iris Clothings Ltd worth studying for long term investment?
Based on quantitative research signals, here is why Iris Clothings Ltd may be worth studying
- Earnings growing at +27.0% YoY
- Cash flow is positive — CFO ₹3 Cr
What is the investment thesis for Iris Clothings Ltd?
Iris Clothings Ltd investment thesis summary:
Research Signals (Bull Case)
- Revenue growing at +45.8% YoY
- Growth catalyst: New Product Or Brand Launch
Risk Factors (Bear Case)
- Margins under pressure
- Appears significantly overvalued
- Key risk: Raw material price changes impacted margins in Q2 and Q3
What is the future outlook for Iris Clothings Ltd?
Iris Clothings Ltd's forward outlook based on current data signals
- Earnings Trend: stable
- Revenue Trend: turning around (inflection up)
- Margin Trend: volatile
- Valuation: Significantly Overvalued
- Key Catalyst: New Product Or Brand Launch
- Key Risk: Raw material price changes impacted margins in Q2 and Q3
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.