💰 Financial Performance

Revenue Growth by Segment

The company operates in a single reportable segment (Apparels). Total turnover increased by 15.82% YoY, rising from INR 5,475.92 lakhs in the previous year to INR 6,342.04 lakhs in FY 2024-25.

Geographic Revenue Split

Not disclosed in available documents; however, the company is headquartered in New Delhi with operations in Mumbai.

Profitability Margins

Net profit margin stood at 9.20% in FY 2024-25, a slight contraction from 9.67% in the previous financial year. Net profit grew by 10.19% YoY to INR 583.64 lakhs from INR 529.66 lakhs.

EBITDA Margin

Operating profit before working capital changes for the half-year ended September 30, 2025, was INR 130.26 lakhs, representing a significant 91.59% decrease from INR 1,549.45 lakhs in the same period of the previous year.

Capital Expenditure

The company invested INR 28.95 lakhs in the purchase of fixed assets during the half-year ended September 30, 2025. Total Property, Plant and Equipment (PPE) stood at INR 289.23 lakhs as of March 31, 2025.

Credit Rating & Borrowing

The company has sanctioned working capital limits exceeding INR 500 lakhs (INR 5 crore) from banks, secured against current assets. Interest and finance charges for H1 FY26 were INR 47.34 lakhs, down 28.9% from INR 66.61 lakhs YoY.

⚙️ Operational Drivers

Raw Materials

Materials for apparel manufacturing (fabrics, yarn, and accessories) constitute the primary input, though specific material-wise cost percentages are not detailed.

Capacity Expansion

The company raised INR 2,100 lakhs through a preferential issue of equity shares for specific business objectives. As of March 31, 2025, INR 1,653.72 lakhs had been utilized, with INR 446.28 lakhs temporarily parked in quoted equity shares pending deployment.

Raw Material Costs

Not disclosed as a specific percentage of revenue, but the company noted variances in stock statements submitted to banks (up to 14.19% in June 2024) due to adjustments in customer advances and trade payables.

Manufacturing Efficiency

The company employs 95 staff members, of which 86.3% (82 employees) are unskilled, indicating a high reliance on manual labor for garment production.

📈 Strategic Growth

Expected Growth Rate

15.82%

Growth Strategy

Growth is driven by a preferential issue of INR 2,100 lakhs to fund specific expansion objectives. Management is focusing on maintaining steady revenue despite challenging economic conditions and is relentlessly striving for business betterment through improved operational performance.

Products & Services

Apparels and garments, specifically marketed under the Monteil brand.

Brand Portfolio

Monteil

Market Expansion

The company is targeting growth in the forthcoming year through the deployment of preferential issue proceeds, though specific regional targets are not listed.

🌍 External Factors

Industry Trends

The apparel industry is facing challenging economic conditions; however, LAL is maintaining steady revenue and profit. The industry is evolving toward more structured financial reporting and internal controls as evidenced by the company's adoption of Ind AS.

Competitive Moat

The company's moat is built on its 'Monteil' brand and its ability to raise significant capital (INR 2,100 lakhs) for expansion. Sustainability depends on the effective deployment of these funds into productive assets.

Macro Economic Sensitivity

High sensitivity to inflation and general economic trends which impact consumer discretionary spending on apparel.

Consumer Behavior

Demand is sensitive to economic cycles and inflationary pressures on household budgets.

⚖️ Regulatory & Governance

Industry Regulations

Compliant with the Companies Act, 2013, and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company maintains an ISO 9001:2015 certification for quality management.

Taxation Policy Impact

The company paid/provided for taxes of INR 11.60 lakhs in H1 FY26. It complies with Ind AS 108 for segment reporting.

Legal Contingencies

The company has disclosed the impact of pending litigations in Note 37 of its financial statements, though the specific INR value of these contingencies is not provided in the summary.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the deployment of the remaining INR 446.28 lakhs from the preferential issue and the impact of inflation on consumer demand, which could impact revenue by an estimated 5-10% if trends worsen.

Geographic Concentration Risk

Operations are concentrated in New Delhi (Okhla Industrial Area) and Mumbai.

Third Party Dependencies

Dependency on banks for working capital limits exceeding INR 500 lakhs.

Technology Obsolescence Risk

The company faces risks related to internal financial controls; however, auditors have currently issued an unmodified opinion on their effectiveness.

Credit & Counterparty Risk

Trade receivables stood at a significant level, with a decrease of INR 436.11 lakhs noted in the cash flow statement for H1 FY26, indicating active collection efforts.