Analysts/Institutional Investor Meet/Con. Call Updates

Santos Digitally signed by Santosh Ladha h LadhaDate: 2026.07.30 18:26:55 +05'30' “Iris Clothings Limited Q1 FY27 Earnings Conference Call” July 28, 2026 MANAGEMENT: MR. HARSH VARDHAN SARDA – BUSINESS HEAD – IRIS CLOTHINGS LIMITED MR. NIRAJ AGARWAL – CHIEF FINANCIAL OFFICER – IRIS CLOTHINGS LIMITED Page 1 of 10 Iris Clothings Limited July 28, 2026 Moderator: Ladies and gentlemen, good day, and welcome to Iris Clothings Limited Q1 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 the 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 star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Harsh Vardhan Sarda, Business Head. Thank you, and over to you, sir. Harsh Vardhan Sarda: Good morning, everyone. Thank you for joining us today for our Q1 FY27 Earnings Call. We are pleased to report another quarter of strong financial and strategic progress. During the quarter, the company delivered a 53% year-on-year growth in net profit, supported by expanding EBITDA margins, reflecting the strength of our business model, disciplined execution and continued focus on operational excellence. Beyond our financial performance, the quarter marked a significant phase in our growth journey, as we executed multiple strategic initiatives aimed at strengthening our market position, expanding our addressable opportunities and building a future-ready apparel platform. We strengthened our omnichannel strategy with the launch of our direct-to-consumer platform, enabling us to engage directly with consumers while complementing our existing distribution network. Building on this momentum, we expanded into quick commerce, making our products more accessible and enhancing convenience for today's digitally connected consumers. On the manufacturing front, we commissioned our state-of-the-art in-house embroidery facility equipped with advanced Japanese machinery. This investment strengthens our integrated manufacturing capabilities, enhances product differentiation, particularly in premium and infant wear and provides greater flexibility to respond to evolving consumer preferences. We also expanded our product portfolio with the launch of our newborn gift set range, a fast- emerging category that complements our growing omnichannel presence. Available across retail stores, digital platforms and quick commerce, this initiative allows us to tap into a high potential gifting segment while further strengthening our value-added offerings. Another significant strategic milestone during the quarter was the Board's approval of the proposed acquisition of a 51% stake in Infinia, subject to shareholder and regulatory approvals. This strategic acquisition marks our entry into the rapidly growing athleisure segment and represents an important step towards building a diversified multi-category apparel business. We believe the combined strengths of Iris Clothings and Infinia will create a scalable platform for accelerated growth, wider market reach and long-term value creation. Page 2 of 10 Iris Clothings Limited July 28, 2026 Collectively, these initiatives reflect our commitment to investing in innovation, expanding our distribution ecosystem, strengthening manufacturing capabilities and creating multiple growth engines that will drive the company's next phase of growth. Going forward, we remain focused on expanding our distribution network, strengthening our brand equity, scaling our digital and omnichannel capabilities and delivering sustainable profitable growth. I will now hand over the call to Niraj Agarwal, our Chief Financial Officer, who will walk us through the Q1 and FY 2027 financial numbers. Niraj Agarwal: Thank you. Thank you, Harsh. Good morning, everyone. Thank you all for joining us today. I am pleased to share that we have delivered strong performance in Q1 FY27. Talking about the key financial highlights of Q1 FY27. Our total income was INR47.2 crores compared to INR37.4 crores in Q1 FY26. EBITDA during the quarter grew by 53% year-on- year and stood at INR8 crores as against INR5.3 crores in Q1 FY26 with an EBITDA margin of 17.12%. Additionally, profit after tax for the quarter witnessed robust growth of 53% year-on-year from INR2.63 crores in Q1 FY26 to INR4 crores in Q1 FY27. In summary, our focus remains on strengthening operational efficiency and leveraging growth opportunities to create long-term value. 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. The first question is from the line of Divyansh from Trinetra Asset Managers. Divyansh: So, my first question was like as our product portfolio is expanding beyond the kidswear and entering into new categories, so can you share that how these new categories are performing in terms of overall revenue? And apart from it, the growth, which is coming in this category, is it coming from the repeat order or just initial distributor placement has been done? Harsh Vardhan Sarda: So currently, since we have been adding product categories for the last couple of years, I think growth -- these segments that we added, particularly infant wear, has started to perform for us. And that is where a decent part of the growth is coming from. But having said that majority of the growth is still coming from the existing categories that we had, which is the repeat purchases that are happening and expanding distribution of the existing product categories. Divyansh: Okay. And can you give that this innerwear, sportswear and travel wear how this is contributing to total revenue, all new categories? Harsh Vardhan Sarda: Travel wear has done very well for us in the last winters, and we expect that to grow very significantly this year, winters as well. Along with that, sportswear is something which is still developing. We are adding products to it every season. So, sportswear is something which is developing, but majority of the growth is coming from the core casual wear that we currently have -- the core athleisure for kids that we have. Page 3 of 10 Iris Clothings Limited July 28, 2026 Divyansh: Okay. And the last question is like over the years; the average order size has been increased from the distributors and -- or like the growth is primarily driven from the adding new distributors only... Harsh Vardhan Sarda: So, a decent part of the growth has come from increase in distributors' revenue. And of course, we have been adding our footprints to multiple regions by adding distributors. But our distributors who have been with us for the last 7 years, 8 years, 10 years, they have been growing, which is where the majority of the growth is coming from. Divyansh: And last question, sorry, again. Can you help us understand like some particular reason from where the major growth has been come and from where you expect the growth opportunity over the next year in the India across regions? Harsh Vardhan Sarda: So, our markets or very significant market is from the west of India, which is Maharashtra, Gujarat, Rajasthan and Punjab, which contributes to around 40% of the overall revenue. But having said that, the next few growth potential pockets that we are looking at, we're looking at Uttar Pradesh as a very significant growth potential for us in the next year-or-so. We are investing in adding distributors in smaller towns in Uttar Pradesh. And along with that, I think the Northeastern part of India, Assam, Mizoram, that part is also [Showing first 8,000 characters — download PDF for full document]