Small-cap textile stock hits upper circuit on 1:1 bonus shares record date

Small-cap textile stock Iris Clothings was locked in 5% upper circuit after the company announced that it has fixed Friday, 4 July, 2025 as the record date for the purpose of determining the members, eligible for the issue of bonus equity shares of the company.

The company announced that it will issue bonus equity shares at a ratio of 1:1, meaning that for each fully paid equity share of a face value of ₹2, shareholders will receive 1 bonus equity share of the same face value, pending approval from the shareholders.

Iris Clothings share price opened at an intraday low of ₹31.79 apiece on the NSE, the stock touched an intraday high of ₹35.10 per share. According to Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, Iris Clothings share price underwent a corporate action with a 1:1 bonus issue. Post-adjustment, the price is up by around 5%. Technically, the overall trend remains positive, with the potential for prices to move towards the ₹40 mark. Strong support is seen near ₹32.

Q4 Results

The company reported a total income of ₹403.3 million for Q4FY25, compared to ₹421.4 million in the same quarter last year; for FY25, total income reached ₹1,465.8 million, reflecting a significant year-on-year growth of 20.1% from Rs. 1,220.2 million in FY24.

In Q4FY25, the firm's EBITDA was ₹82.3 million, up from ₹71.0 million in Q4FY24, marking a year-on-year increase of 15.8%, with an EBITDA margin of 20.4% for that quarter; for FY25, EBITDA totaled ₹283.1 million, with a margin of 19.3%.

The profit after tax for Q4FY25 was ₹44.8 million, compared to ₹34.9 million, indicating a strong year-on-year growth of 28.6%; during FY25, the profit after tax was ₹131.2 million, a rise from Rs. 122.1 million in FY24, representing a 7.5% year-on-year growth.

Company Details

Iris Clothings is a rapidly expanding readymade garments business with a presence in 26 states and over 100 distributors. It focuses on designing, manufacturing, branding, and selling kids' apparel in India. The company produces a wide variety of clothing for infants, toddlers, and boys and girls in junior sizes, suitable for both indoor and outdoor activities. As a new and emerging competitor in India’s growing fashion industry, the company aims to reflect the trend of consumers increasingly aligning themselves with fashion and brand preferences.

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