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Iris Clothings Ltd

| Statement of Audited Financial Results for the Quarter and Year Ended 31st March, 2026

Report Source

⬤11th May 26

Summary : Company shows strong growth, significant capex, and equity infusion, but operating cash flow is negative.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Total Expenses: 16,906.67 Lakhs (FY26) vs 12,876.38 Lakhs (FY25).
  2. Significant increases in cost of materials, purchases, employee benefits, and other expenses.
  3. Revenue from Operations: 19,086.94 Lakhs (FY26) vs 14,627.33 Lakhs (FY25).
  4. Total Income: 19,117.68 Lakhs (FY26) vs 14,657.93 Lakhs (FY25).
  5. Net Cash from Operating Activities: (670.42) Lakhs (FY26) vs 253.48 Lakhs (FY25).
  6. Net Cash from Investing Activities: (1,675.58) Lakhs (FY26) vs 3.65 Lakhs (FY25).
  7. Net Cash from Financing Activities: 2,356.14 Lakhs (FY26) vs (253.72) Lakhs (FY25).
  8. Proceeds from Rights Issue: 4,758.29 Lakhs (FY26).
  9. Total Assets: 20,372.29 Lakhs (FY26) vs 15,676.56 Lakhs (FY25).
  10. Equity Share Capital increased to 3,806.63 Lakhs (FY26) from 1,631.41 Lakhs (FY25).
  11. Property, Plant & Equipment increased to 2,133.73 Lakhs (FY26).
  12. Capital work-in-progress: 699.02 Lakhs (FY26).
  13. Current Borrowings decreased to 2,006.14 Lakhs (FY26) from 3,751.60 Lakhs (FY25).
  14. Standalone financial statements as company has no subsidiaries, associates, or joint ventures.

Corporate Overview

  1. Manufacturing and trading of garments.
  2. Garments manufacturing and trading.
  3. Significant capital expenditure on property, plant, and equipment.
  4. Capital work-in-progress of 699.02 Lakhs.

Risk Factors

  1. Operating cash flow turned negative.
  2. Increased trade receivables and inventories.
  3. Auditor mentioned 'net loss' in opinion.
  4. Future impact of new labor codes.

Key Drivers

  1. Revenue and profit showed strong growth.
  2. Successful rights issue boosted capital.
  3. Significant capital expenditure for expansion.
  4. Reduced short-term borrowings.

Auditor’s Report

  1. Unmodified opinion.

Board Commentary

  1. Implementation of New Labour Codes from November 2025.
  2. Assessed 'NIL' financial impact from New Labour Codes.
  3. Raised Rs. 4758.28 Lakhs through rights issue.
  4. Allotted Bonus Equity Share in 1:1 ratio.

Corporate Governance

  1. Company adheres to Code of Ethics issued by ICAI.
  2. Auditor confirmed compliance with ethical requirements regarding independence.

Management Discussion & Analysis

Performance Drivers

  1. Increased revenue from operations.
  2. Higher profit for the year.

Risk Control Measures

  1. Successful rights issue provided significant capital infusion.
  2. Reduction in short-term borrowings.

Critical Risks

  1. Negative cash flow from operating activities.
  2. Increased trade receivables and inventories.
  3. Auditor's opinion mentioned 'net loss' for the period.
Iris Clothings Ltd (IRISDOREME) Quarterly Report Analysis & Insights | Dhanarthi