💰 Financial Performance

Revenue Growth by Segment

Total revenue from operations for H1 FY26 was INR 25.36 Cr, representing a 1.76% decline compared to INR 25.81 Cr in H1 FY25. Segment-specific growth is not disclosed.

Geographic Revenue Split

The company operates through 4 branches and a network of 180 distributors and 3,000 dealers across 21 cities, including presence in Large Format Stores like Shoppers Stop and Lifestyle.

Profitability Margins

Operating Profit Margin declined from 9.33% in FY24 to -7.72% in FY25 due to lower sales and exceptional items. Net Profit Margin fell from 6.72% to 4.23% over the same period.

EBITDA Margin

Historical PBILDT margins were 8.60% in FY17, a significant decline from 16.83% in FY16, primarily due to outdated stock sales and higher raw material costs.

Credit Rating & Borrowing

The company maintains a comfortable capital structure with low gearing (0.049x in FY25). Finance costs for H1 FY26 were INR 19.46 Lacs compared to INR 18.42 Lacs in H1 FY25.

⚙️ Operational Drivers

Raw Materials

Specific raw material names are not disclosed, but the company reported margin pressure due to rising raw material costs and loss on sale of outdated stock.

Import Sources

The CIF value of imports was INR 4.59 Lacs in FY25, up 62.7% from INR 2.82 Lacs in FY24. Specific source countries are not disclosed.

Raw Material Costs

Raw material costs increased in recent periods, contributing to a decline in PBILDT margins from 16.83% to 8.60% historically.

Logistics & Distribution

Selling and distribution expenses for H1 FY26 were INR 5.99 Cr, compared to INR 11.48 Cr for the full year FY25.

📈 Strategic Growth

Growth Strategy

The company focuses on its extensive distribution network of 180 distributors and 3,000 dealers serving 11,000 multi-brand outlets and direct marketing through 4 branches in 21 cities.

Products & Services

Women's innerwear, specifically lingerie, brassieres, and panties.

Brand Portfolio

Lovable.

Market Expansion

Presence in 21 cities via Large Format Stores like Shoppers Stop and Lifestyle.

🌍 External Factors

Industry Trends

The lingerie industry is facing stiff competition from both large organized players and the unorganized segment, leading to pricing pressure.

Competitive Landscape

Faces intense competition from large organized and unorganized segments, leading to a decline in debtors turnover from 3.13 to 1.94.

Competitive Moat

The company's moat is its established brand name 'Lovable' and a deep distribution network of 11,000 multi-brand outlets, though this is challenged by high inventory requirements.

Consumer Behavior

Slower demand and changes in product mix have led to a decrease in inventory turnover from 1.10 to 0.80.

⚖️ Regulatory & Governance

Industry Regulations

Compliant with SEBI (LODR) and Companies Act 2013 requirements.

Taxation Policy Impact

Average net profit for CSR purposes is INR 4.05 Cr, with a 2% requirement of INR 8.11 Lacs.

⚠️ Risk Analysis

Key Uncertainties

Elongated operating cycle and high inventory holding (4-6 months) pose liquidity risks if sales velocity continues to decline.

Geographic Concentration Risk

Operations are concentrated in 21 major cities through 4 branches.

Third Party Dependencies

High dependency on a network of 180 distributors to reach 11,000 multi-brand outlets.

Technology Obsolescence Risk

Risk of fashion obsolescence, evidenced by historical losses on the sale of outdated stock.

Credit & Counterparty Risk

Receivables quality is a concern as debtors turnover fell from 3.13 to 1.94, with customers taking more time to settle payments.