IRIS CLOTHING
- Introduction
Introduction of the company
From small beginnings in India, IRIS Clothing Limited crafts clothes for children and infants. T-shirts show up beside dresses and rompers, all stitched under one name. That label DOREME - seen everywhere from cities to villages. Each piece travels through local markets, carried by quiet demand. Not loud ads, just steady reach.
Industry overview
A large share of India’s economic activity ties back to garment production, a sector thriving on steady demand. Because global shoppers favor comfortable, recognizable labels, expansion continues here. This industry thrives not just through volume but by meeting tastes that value softness and familiarity.
Purpose of the Analysis
The purpose of this analysis is to evaluate the financial performance, growth trends, and overall financial health of the company.
.Company Overview
Background and History
Starting out in India, IRIS Clothing Limited began making clothes just for kids. As time passed, it grew stronger in children's fashion without rushing things. Its name started showing up more across local clothing stores. People now recognise the label when they shop for young ones. Growth came slowly, yet steadily through focused effort.
Business Model
Starting with sketches on paper, clothes take shape inside workshops run by the brand. From there, stitched pieces travel out through third-party sellers spread nationwide. Some go to physical stores others land on digital marketplaces for buyers to find. Each step connects without overlap, keeping creation separate from delivery.
Key Products/Services
The company mainly produces kidswear and babywear, including t-shirts, dresses, rompers, leggings, and other clothing items under its brand DOREME.
Market Position
Starting strong in India’s children's clothing scene, IRIS Clothing Limited stands out among homegrown rivals through careful attention to fabric standards, creative styles, then balanced cost choices across its lineup.
- Promoter /Founder Introduction
Kunal Bhandari
Name of promoter/founder
The company is promoted and led by Kunal Bhandari,
Role: Managing the company’s operations and strategy.
Professional background
Kunal Bhandari has experience in the textile and garment industry, with knowledge of apparel manufacturing, brand development, and business management.
Role in company growth
From the start, he helped IRIS Clothing Limited grow by pushing the kidswear line forward while giving extra attention to building up DOREME.
- Financial Statement Analysis
Income Statement
Year | Revenue (₹ Crore) | Net Profit (₹ Crore) |
|---|---|---|
FY2023 | 113 | 8.26 |
FY2024 | 121.9 | 12.21 |
FY2025 | 146 | — |
Starting at ₹113 Cr, revenue moved up to ₹121.9 Cr by FY2024. Growth held firm through the year, step by step.
Fresh gains showed up in net earnings, climbing from ₹8.26 Cr to ₹12.21 Cr - proof of stronger margins.
Revenue Chart
Balance Sheet Analysis (₹ Crore)
Particulars | FY2025 | FY2024 | FY2023 |
|---|---|---|---|
Equity Capital | 16.31 | 16.31 | 16.31 |
Reserves & Surplus | 65.97 | 52.85 | 40.64 |
Total Equity / Net Worth | 82.28 | 69.16 | 56.95 |
Observation :
- Assets increased from ₹109 Cr (FY23) → ₹156 Cr (FY25).
- Equity also increased due to retained earnings.
- Debt has increased slightly to support expansion.
Cash Flow Statement (₹ Crore)
Particulars | FY2025 | FY2024 | FY2023 |
|---|---|---|---|
Operating Cash Flow | 2.53 | 1.71 | 2.07 |
Investing Cash Flow | 0.04 | -2.72 | -2.07 |
Financing Cash Flow | -2.54 | 1.03 | -0.02 |
Net Cash Flow | 0.03 | 0.02 | -0.02 |
Closing Cash Balance | 0.08 | 0.04 | 0.02 |
Analysis:
- Fresh money keeps coming in from daily work. That means the core activities bring real dollars through the door.
- Funds moving out often means buying equipment or growing operations. Sometimes growth needs spending first.
- Funding movements shift when loans come in or go out. Sometimes money flows because of debt taken on; other times it changes as debts are settled.
Key Financial Ratios
Ratio | Interpretation |
|---|---|
Net Profit Margin | ~10% in FY2024, showing improved profitability |
Operating Margin | Around 17–21%, indicating efficient operations |
Debt–Equity Ratio | Moderate leverage |
Current Ratio | Healthy liquidity position |
Year-on-Year Comparison (3 Years)
Year | Revenue Growth |
|---|---|
FY2023 | 1.3% |
FY2024 | 7.9% |
FY2025 | 19.9% |
- Key Insights & Interpretation
Strengths
- Fresh numbers point to consistent income gains, suggesting more people want what they sell.
- Fresh energy flows into children's clothing across India, where demand keeps climbing. A shift happens quietly as families spend more on young ones' wardrobes. This corner of fashion grows without loud announcements, just steady steps forward.
- Strong brand presence through DOREME it.
Weaknesses
- Smaller than major clothing labels, the business runs a more modest operation.
- When materials get pricier, profits often shrink. Costs of making goods rise, which presses down earnings. If factory expenses climb, money left over tends to drop. Higher spending on supplies means less stays in the till. Production going up in price usually leads to thinner returns..
Risk Factors
- Competition from other domestic and international clothing brands.
- Changes in fashion trends and consumer preferences.
- Fluctuations in cotton and textile raw material prices.
Future outlook
With more parents buying name-brand children's clothes across India, the business could grow well. Because of wider availability and a broader selection, earnings might climb along with its presence in stores.
- Conclusion
A close look at IRIS Clothing Limited reveals income rising year after year, profits climbing alongside. Despite shifts in the market, its balance sheet holds firm - more resources now than before, activity spreading further each quarter.
A step up in value might happen if the brand keeps pace with rising interest in children's clothing. Still, staying ahead means handling rivals, expenses, and what shoppers want - without falling behind.
- Data Sources