💰 Financial Performance

Revenue Growth by Segment

Total Net Sales grew 55.17% YoY from INR 45.11 Cr in FY24 to INR 70.00 Cr in FY25. Segment contribution is led by Composite Sets (48% of sales), followed by Top Wear (23%), Bottom Wear (16%), and Sarees (10%).

Geographic Revenue Split

The company operates 16+ retail stores across Rajasthan, Delhi NCR, Bangalore, Punjab, and Lucknow. While specific regional % splits are not disclosed, the offline presence is concentrated in North and South India, with a fully integrated dispatch facility in Jaipur, Rajasthan.

Profitability Margins

Net Profit Margin improved significantly from 1.12% in FY24 to 5.14% in FY25. Gross realization was bolstered by an 87% increase in Average Selling Price (ASP) from INR 855 to INR 1,600 due to brand premiumization.

EBITDA Margin

Operating EBITDA margin increased from 10.0% in FY24 to 13.10% in FY25. Absolute EBITDA rose 109.3% from INR 4.3 Cr to INR 9.00 Cr, driven by higher sales realization and better absorption of fixed costs.

Capital Expenditure

Historical depreciation of INR 2.00 Cr in FY25 (up from INR 1.95 Cr in FY24) indicates steady maintenance of its Jaipur manufacturing and dispatch infrastructure. Planned expansion includes 3 additional stores currently in 'fit-out' stage.

Credit Rating & Borrowing

Interest costs rose 18.5% to INR 3.00 Cr in FY25 from INR 2.53 Cr in FY24. The Debt-Equity ratio improved from 0.57 to 0.38, indicating a strengthening balance sheet and reduced leverage risk.

⚙️ Operational Drivers

Raw Materials

Textile fabrics (cotton, silk, synthetics) and dyes represent the primary raw material costs, though specific % breakdowns per material are not disclosed.

Import Sources

Sourced primarily from domestic textile hubs in India, with a focus on Jaipur, Rajasthan for manufacturing and vendor relationships.

Key Suppliers

The company maintains a wide base of long-term fabric suppliers and manufacturing vendors to de-risk geographical and dependency factors.

Capacity Expansion

Current operations sold 8.14 lakh pieces in FY25 (up 22.5% from 6.64 lakh in FY24). Expansion is focused on the retail footprint, adding 12+ Reliance Centro stores and moving toward a FOFO (Franchise Owned Franchise Operated) model starting with Jalandhar.

Raw Material Costs

Raw material procurement is managed through long-term relationships; the company is shifting to Machine Learning (ML) led replenishment to optimize inventory cycles and reduce stock-outs.

Manufacturing Efficiency

Inventory Turnover Ratio improved from 1.05 times in FY24 to 1.28 times in FY25, reflecting better movement of stock and higher demand for the 'Jaipur Kurti' brand.

Logistics & Distribution

Distribution is omnichannel, with 62.78% of sales coming from online platforms and 38.8% from own-channel sales (INR 27 Cr), reducing reliance on third-party logistics costs over time.

📈 Strategic Growth

Expected Growth Rate

15%

Growth Strategy

Growth will be driven by an omnichannel strategy: expanding the offline footprint through 12+ Reliance Centro stores, scaling the D2C website (jaipurkurti.com), and increasing ASP through premiumization. The company is also leveraging a brand ambassador (Madhuri Dixit) to increase recall.

Products & Services

Women's Indian wear including Kurtis, Suit sets, Fusion wear, Lounge wear, Bottom wear (pants, palazzos), and Sarees.

Brand Portfolio

Jaipur Kurti, Amaiva-By Jaipur Kurti, and Desi Fusion.

New Products/Services

Expansion into high-end ethnic wear via the 'Amaiva' brand and B2B fashion destinations through 'Desi Fusion'.

Market Expansion

Targeting Tier I, II, and III cities through a mix of COCO (8 stores) and FOFO models, alongside 80+ Shop-in-Shop (SIS) counters.

Market Share & Ranking

Positioned as a leading 'Online First' Indian women's wear brand with a 12+ year track record.

Strategic Alliances

Partnerships with Reliance Centro, Reliance Trends (53+ stores), Shoppers Stop (6+ stores), and Avantara/Kalanikethan (35+ stores).

🌍 External Factors

Industry Trends

The Indian women's apparel market (US$ 44bn in 2023) is shifting from unorganized to organized branded segments. Online penetration is expected to reach 14% by 2028, favoring 'online-first' players like Jaipur Kurti.

Competitive Landscape

Competes with organized players like Biba and Reliance-owned brands, as well as a large unorganized sector in the ethnic wear space.

Competitive Moat

Moat is built on a 12-year 'online-first' legacy, a strong D2C proprietary platform (38.8% of sales), and a fully integrated manufacturing-to-retail supply chain in Jaipur.

Macro Economic Sensitivity

Highly sensitive to Indian consumer discretionary spending and the growth of the e-commerce sector, which is projected to reach US$ 345 billion by FY30.

Consumer Behavior

Increasing number of working women and a shift toward 'fusion wear' and branded ethnic wear are driving demand.

Geopolitical Risks

Minimal direct impact as manufacturing and sales are largely domestic, though global cotton price fluctuations can affect raw material costs.

⚖️ Regulatory & Governance

Industry Regulations

Subject to textile manufacturing standards and GST regulations. Benefits from government schemes like MITRA and SITP for the textile sector.

Taxation Policy Impact

Effective tax rate was approximately 20% in FY25 (INR 1.00 Cr tax on INR 5.00 Cr PBT).

Legal Contingencies

The Scrutinizer's Report for the 13th AGM confirms all resolutions were passed with requisite majority; no major pending litigation values were disclosed.

⚠️ Risk Analysis

Key Uncertainties

Fashion trend volatility and the ability to maintain the 87% ASP jump without losing volume (8.14 lakh pieces sold).

Geographic Concentration Risk

Manufacturing is 100% concentrated in Jaipur, Rajasthan, posing a localized operational risk.

Third Party Dependencies

61.2% of sales depend on third-party marketplaces (Myntra, Ajio, etc.), making the company vulnerable to their algorithm and commission changes.

Technology Obsolescence Risk

The company is mitigating this by investing in a proprietary mobile app (Android/iOS) and ML-led replenishment systems.

Credit & Counterparty Risk

Trade Receivables Turnover Ratio was 1.96 times in FY25, slightly down from 2.10 in FY24, indicating a need for tighter credit control with MBO/LFRS partners.