💰 Financial Performance

Revenue Growth by Segment

Revenue from operations declined 14.34% YoY from INR 3,602.29 Lakhs in FY24 to INR 3,085.70 Lakhs in FY25, primarily due to intense competition in the nascent shapewear market and potential shifts in consumer demand across its 40+ distribution channels.

Geographic Revenue Split

The company currently caters primarily to the domestic Indian market through 6,000+ retail outlets and major e-commerce platforms; however, it is initiating export pilots in the Middle East, Southeast Asia, and Europe to diversify its geographic footprint.

Profitability Margins

Net profit margin compressed significantly from 2.05% in FY24 to 0.54% in FY25, as net profit fell 77.33% to INR 16.75 Lakhs, driven by a higher fixed-cost base and a 28% increase in depreciation expenses.

EBITDA Margin

EBITDA margin declined from 9.14% in FY24 to 6.33% in FY25, with absolute EBITDA falling 40.7% to INR 195.25 Lakhs, reflecting reduced operational leverage as revenue contracted while employee benefits rose 5.9% to INR 765.57 Lakhs.

Capital Expenditure

The company invested INR 1.37 Cr (136.73 Lakhs) in FY25 for the purchase of fixed and intangible assets to support its 1 Lakh unit-per-month manufacturing capacity and advanced bonded technology capabilities.

Credit Rating & Borrowing

Total borrowings stood at INR 802.04 Lakhs in FY25 (INR 172.78 Lakhs long-term and INR 629.26 Lakhs short-term), with finance costs of INR 104.98 Lakhs implying an effective borrowing cost of approximately 13%.

⚙️ Operational Drivers

Raw Materials

Key raw materials include specialized fabrics for shapewear, utilizing proprietary cotton-bonding technology and silicone infusion, which represented 36.1% of total revenue (INR 1,114.14 Lakhs) in FY25.

Import Sources

The company emphasizes 'Made in India' production, sourcing materials primarily within the domestic market to maintain cost-competitiveness against international alternatives.

Capacity Expansion

Current manufacturing capacity is 1 Lakh units per month (based on an 8-hour shift), with plans to improve core offerings and strengthen logistics for faster delivery over the next three years.

Raw Material Costs

Cost of materials consumed decreased 19.6% YoY to INR 1,114.14 Lakhs in FY25, aligning with the revenue decline, though procurement strategies focus on optimizing costs for the price-sensitive Indian market.

Manufacturing Efficiency

The company maintains a wide range of 3,000+ SKUs, which requires high manufacturing flexibility but contributes to a complex inventory cycle of approximately 143 days.

Logistics & Distribution

Distribution is managed through 40+ channels and 6,000+ retail outlets, with a strategic focus on improving logistics efficiency and digital capabilities to support its omni-channel presence.

📈 Strategic Growth

Expected Growth Rate

9%

Growth Strategy

Growth will be achieved through international export pilots in the Middle East and Europe, the launch of new product lines like the 'Breezeology' men's range, and the initiation of white-label manufacturing for major brands like Nykaa and Da-mensch.

Products & Services

Shapewear, innerwear, athleisure, and bras for both men and women, including specialized products like high-waist shapewear and glue-bonded trunks.

Brand Portfolio

Dermawear

New Products/Services

Launched the Breezeology Men’s Shapewear range in December 2025, featuring advanced bonded technology (Zenrik series) to address the needs of 26 million Indian men dissatisfied with their body shape.

Market Expansion

Targeting international markets through export pilots and expanding its domestic retail footprint beyond the current 6,000+ outlets over a three-year roadmap.

Market Share & Ranking

Positioned as India's first R&D-driven shapewear brand and a category leader in the organized segment of the nascent Indian shapewear market.

Strategic Alliances

Initiated vendor assessment and factory audits for potential white-labeling engagements with reputed brands Da-mensch and Nykaa to leverage its bonded-technology infrastructure.

🌍 External Factors

Industry Trends

The Indian shapewear market is expected to grow at a 9% CAGR (2023-2028), driven by increasing consumer awareness and a shift from unorganized to organized brands.

Competitive Landscape

Competes with both domestic unorganized players and international innerwear brands, utilizing in-house manufacturing to maintain a cost advantage.

Competitive Moat

The moat is built on 13 years of promoter experience, proprietary fabric technologies (cotton-bonding), and a focus on Indian body types, which are difficult for global 'one-size-fits-all' brands to replicate.

Macro Economic Sensitivity

Highly sensitive to discretionary consumer spending and the growth of the Indian e-commerce industry, which is expected to reach USD 299 Bn by 2029.

Consumer Behavior

Increasing demand for high-quality, comfortable shapewear that is suitable for the Indian climate and traditional attire like sarees.

Geopolitical Risks

Expansion into international markets like the Middle East and Europe exposes the company to trade barriers and varying regulatory standards for textile safety.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to textile manufacturing standards and safety certifications like OEKO-TEX, which are required for white-labeling partnerships with global brands.

Environmental Compliance

Applied for OEKO-TEX certification, an international standard for textile safety, to strengthen product credibility for global export markets.

Taxation Policy Impact

The company recorded a net tax benefit of INR 10.30 Lakhs in FY25 due to deferred tax assets, compared to a tax expense of INR 37.46 Lakhs in FY24.

⚠️ Risk Analysis

Key Uncertainties

Key risks include the ability to manage rapid international growth, potential fluctuations in raw material costs, and the high working capital requirement of its multi-SKU model.

Geographic Concentration Risk

Currently has a high concentration in the Indian domestic market, though it is actively pursuing geographic diversification through exports.

Third Party Dependencies

Significant dependency on e-commerce platforms for sales and potential white-label partners (Nykaa/Da-mensch) for future volume growth.

Technology Obsolescence Risk

Risk of new fabric innovations displacing current bonding technologies; mitigated by a continuous feedback loop and in-house R&D.

Credit & Counterparty Risk

Trade receivables increased 67% YoY to INR 573.68 Lakhs in FY25 despite falling revenue, indicating potential credit risk or extended payment terms to distributors.