FORCAS - Forcas

📊 NSE: FORCAS 🏢 Textiles - Products 📅 Last Updated: 12/13/2025 22:08

💰 Financial Performance

Revenue Growth by Segment

The company achieved a 251.39% YoY growth in standalone revenue, rising from INR 40.48 Cr in FY24 to INR 142.24 Cr in FY25. Growth was driven by the Textile division (higher volumes in fabric and garmenting) and the Garmenting segment, which maintained strong momentum through operational improvements.

Geographic Revenue Split

While specific regional percentages are not disclosed, the company is expanding its footprint in 'Bharat' (Tier 2/3 cities), specifically targeting the UP market via a new warehouse in Varanasi and reporting strong sales for kurtas in Hyderabad, Lucknow, and Southern India.

Profitability Margins

Net Profit Margin improved from 5.28% in FY24 to 6.07% in FY25. The company targets higher margins by shifting the product mix toward Women's wear (20-30% higher EBITDA margin than Men's) and Kids' wear (10-15% higher than Men's).

EBITDA Margin

EBITDA grew by 282.02% from INR 3.64 Cr in FY24 to INR 13.89 Cr in FY25. The company expects EBITDA margins to improve as the Average Selling Price (ASP) increases from the current INR 350-370 range toward INR 450.

Capital Expenditure

Property, Plant, and Equipment increased from INR 1.70 Cr in FY25 to INR 2.29 Cr in H1 FY26. The company maintains an asset-light model by outsourcing manufacturing, focusing capex on warehousing and distribution infrastructure.

Credit Rating & Borrowing

The company has not availed any credit rating. However, it significantly deleveraged its balance sheet, with the debt-equity ratio improving from 3.29 in FY24 to 0.42 in FY25. Debt Service Coverage Ratio (DSCR) improved from 2.07 to 6.32.

⚙️ Operational Drivers

Raw Materials

Fabric and yarn are the primary raw materials, though specific percentage of total cost is not disclosed. The company is exposed to price fluctuations in these commodities which directly impact the COGS for its garmenting division.

Import Sources

Not specifically disclosed; however, the company monitors global and Indian demand-supply conditions for procurement.

Capacity Expansion

The company operates on an outsourced manufacturing model. Expansion is focused on distribution; it recently added a warehouse in Varanasi and is scaling inventory to INR 61 Cr to support a 50-70% top-line growth target.

Raw Material Costs

Raw material costs are managed through forward booking and proactive vendor development. The company's strategy involves maintaining a robust marketing network to mitigate the impact of price risks on finished goods.

Manufacturing Efficiency

Efficiency is driven by an asset-light, 100% outsourced manufacturing strategy, allowing the company to focus on design, branding, and distribution rather than factory utilization.

Logistics & Distribution

Online commissions (including logistics/platform fees) average 30-33%, ranging from 22% to 40% depending on the platform (Zepto, Myntra FWD, etc.).

📈 Strategic Growth

Expected Growth Rate

30-40%

Growth Strategy

Growth will be achieved by expanding into Quick Commerce (targeting 5-10% of total revenue), increasing the ASP from INR 350 to INR 450, and diversifying the product mix into higher-margin Women's and Kids' categories. The company is also issuing warrants to promoters to fund this expansion.

Products & Services

Fashionable apparel including shirts, denims, kurtas, and specialty workwear priced between INR 299 and INR 599.

Brand Portfolio

Forcas Studio.

New Products/Services

Expansion into Women's and Kids' wear segments and new categories like kurtas for specific regional markets (UP, Hyderabad).

Market Expansion

Targeting 'Aspirant Bharat' through both online (B2C, Quick Commerce) and offline channels, with a focus on rapid delivery and regional warehousing.

Strategic Alliances

Partnerships with quick commerce platforms like Zepto and fashion platforms like Myntra (FWD segment).

🌍 External Factors

Industry Trends

The industry is shifting toward 'Quick Commerce' for fashion. Forcas is positioning itself to capture this by ensuring products are 'delivered fastest' to customers who want fashionable items at low price points.

Competitive Landscape

Competes with other value-segment fashion brands; differentiates through price (INR 299-599) and presence across both quick commerce and traditional offline channels.

Competitive Moat

The moat is built on a 15-17 year understanding of the apparel lifecycle and a data-driven inventory system that prevents capital lock-up in dead stock. This is sustainable as long as the company maintains its speed-to-market advantage.

Macro Economic Sensitivity

Highly sensitive to Indian consumer spending patterns in the value fashion segment and fluctuations in the domestic textile industry.

Consumer Behavior

Increasing consumer preference for 'fast fashion' delivered via quick commerce platforms in Tier 2 and Tier 3 cities.

Geopolitical Risks

Global demand-supply conditions for raw materials are cited as a factor that could materially affect operations.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to Indian Government regulations, tax regimes, and textile industry standards. The company complies with IndAS and the Companies Act 2013.

Taxation Policy Impact

Current tax for FY25 was INR 3.03 Cr on a PBT of INR 11.65 Cr, representing an effective tax rate of approximately 26%.

Legal Contingencies

The company notes that litigation and labor negotiations are factors that could affect operations, but no specific pending high-value court cases are detailed in the provided text.

⚠️ Risk Analysis

Key Uncertainties

Inventory risk is the primary uncertainty; while currently managed at <2% write-offs, a failure to accurately predict fashion trends could lead to significant discounting. Online commission costs (30-33%) also represent a high fixed-variable cost burden.