Iris Clothings grows revenue, but faster costs cut operating margin
Standalone net profit rose 26.68% QoQ as the tax rate fell, while management outlined COCO-store expansion and future FOCO franchising.
Filed 27 Oct 2026, 12:55 IST · Iris Clothings Ltd (IRISDOREME)
Key takeaways
- Standalone revenue rose 31.58% QoQ to Rs 62.16 cr, but expenses grew 34.60%, narrowing operating margin by 1.90 percentage points.
- Net profit increased 26.68% QoQ to Rs 5.08 cr, helped by a 1.80-percentage-point fall in the tax rate to 23.66%.
- Iris Clothings' 15.14% operating margin was 2.52 percentage points above the 12.62% median for 52 Consumer Discretionary peers.
Price around the results
Revenue momentum came with a lower operating margin
Standalone revenue increased 31.58% QoQ to Rs 62.16 cr, and operating profit grew 16.89% to Rs 9.41 cr. Expenses rose faster than revenue at 34.60%, reducing operating margin from 17.04% to 15.14%, a decline of 1.90 percentage points. Interest expense also increased 9.09%, adding pressure below operating profit.
Lower tax rate supported profit growth
Profit before tax rose 23.61% QoQ, while net profit grew faster at 26.68% to Rs 5.08 cr as the tax rate fell 1.80 percentage points to 23.66%. Other income contributed only 0.90% of pre-tax profit, so the quarter's earnings were not materially dependent on that line. The 15.14% operating margin remained 2.52 percentage points above the 12.62% median among 52 reported Consumer Discretionary peers.
Management outlines a COCO-led store plan
Management said it plans to continue with only company-owned, company-operated stores for a couple of years and approximately 80 stores. It also said franchise stores are planned after FY26 under the franchise-owned, company-operated model. Management said the textile and apparel market was affected by macro-headwinds but is expected to pick up, and that FAMA approval for Disney products opens export and manufacturing-collaboration opportunities.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹62 cr | ₹47 cr | +31.58% |
| Other income | ₹0 cr | ₹0 cr | +20.00% |
| Expenses | ₹53 cr | ₹39 cr | +34.60% |
| Operating profit | ₹9 cr | ₹8 cr | +16.89% |
| Operating margin (%) | 15.14% | 17.04% | — |
| Interest | ₹1 cr | ₹1 cr | +9.09% |
| Depreciation | ₹2 cr | ₹2 cr | +1.09% |
| Profit before tax | ₹7 cr | ₹5 cr | +23.61% |
| Tax | ₹2 cr | ₹1 cr | +14.60% |
| Net profit | ₹5 cr | ₹4 cr | +26.68% |
| EPS (₹) | ₹0.27 | ₹0.21 | +28.57% |
Operating margin of 15.14% compares with a Consumer Discretionary sector median of 12.62% across 52 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- The textile and apparel market is expected to pick up after being affected by macro-headwinds.
Expansion
- The company plans to continue with only COCO stores for a couple of years and approximately 80 stores.
- The company plans to launch franchise stores after FY26 using the FOCO model.
New initiatives
- The company received FAMA approval to manufacture Disney products, enabling export opportunities and manufacturing collaborations.
Problems & risks
- The textile and apparel market was affected by macro-headwinds.
What to watch
- Whether operating margin holds above 15.14% after expenses grew 34.60% QoQ.
- Whether the tax rate remains near 23.66% after falling 1.80 percentage points QoQ.
- Progress on the approximately 80-store COCO plan and the stated post-FY26 FOCO rollout.