Small-cap stock Iris Clothings declares a 1:1 bonus share issue along with Q4 results. Details here

Iris Clothings, a readymade garment company, has announced a 1:1 bonus issue to existing shareholders.

The company, in a media release on May 16, announced a bonus issue in the ratio of 1:1 of fully paid-up equity shares of ₹2 each to existing shareholders.

The clothing company announced its Q4FY25 results on May 15, reporting a 28.6 per cent year-on-year (YoY) jump in its profit after tax (PAT) to ₹4.48 crore compared to ₹3.49 crore in the corresponding quarter of the previous financial year. PAT margin improved by 284.3 bps YoY to 11.1 per cent in Q4FY25 from 8.3 per cent in Q4FY24.

EBITDA jumped 15.8 per cent YoY to ₹8.23 crore from ₹7.1 crore, while EBITDA margin improved 354.7 bps YoY to 20.4 per cent in Q4FY25 from 16.9 per cent in Q4FY24.

Total income for the quarter under review, however, declined 4.3 per cent YoY to ₹40.33 crore from ₹42.14 crore.

"Throughout the year, we encountered challenges related to input costs; however, we experienced a revival in Q4FY25, which is evident in our improved operational profitability," said Santosh Ladha, Managing Director (MD) of Iris Clothings.

"The growth was accelerated by our B2B segment, where we have added nine new distributors during the quarter. Recently, we have also successfully raised capital through a rights issue totalling ₹47.5 crore, which will be strategically allocated to support our growth initiatives," said Ladha.

FY26 guidance

The company plans to expand its production capacity and anticipates strong growth led by organic demand and capacity additions.

"Looking ahead to FY26, we plan to expand our production capacity to reach 38,000 pieces per day. We anticipate strong growth driven by organic demand and new capacity additions, while also focusing on enhancing our retail D2C segment to accelerate our growth trajectory and deliver greater value to our stakeholders," Ladha said.

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