Active Clothing Co Ltd Q2 FY26 Results & Concall Highlights: Revenue, Margins & Order Book

Q2 FY26 earnings call: what management guided on revenue, margins and order book.

Published 5 Aug 2026 | Textiles & Apparels | Market Cap: ₹180 Cr

The rollout of 652 new smart knitting machines over the next 3 years is expected to significantly enhance production capacity. - Once the rollout is complete, peak revenue is projected to reach approximately Rs. The company expects steady growth supported by ongoing capacity expansion, particularly with the rollout of 652 smart knitting machines over the next 3+ years. - Peak revenue post-completion of these machines is projected around Rs.

From Active Clothing Co Ltd's Q2 FY26 earnings-call transcript · updated 23 Aug 2026.

📊 Revenue & Sales Performance

Rank 3

→The rollout of 652 new smart knitting machines over the next 3 years is expected to significantly enhance production capacity.
→Once the rollout is complete, peak revenue is projected to reach approximately Rs. 700 Crores.
→Incremental capacity expansions are planned every six months, with Rs. 60 Crores capex in FY2026-27 focusing on knitting machines.
→The company aims to target new clients alongside growing business with existing customers.
→Growth is supported by automation, technology adoption, and expanding export markets, especially in Europe.
→Expansion into tier 2 and tier 3 cities for touchpoints is planned, though the current model remains stable with around 200 dealers.
→Despite current challenges in the American market, long-term growth outlook remains optimistic with improving sales volumes and operational efficiencies.
→Real-time sales tracking and digital workflows are expected to improve sales and reduce returns further.

📈 Profitability & Margins

Rank 2

→The company expects steady growth supported by ongoing capacity expansion, particularly with the rollout of 652 smart knitting machines over the next 3+ years.
→Peak revenue post-completion of these machines is projected around Rs. 700 Crores.
→EBITDA and margins are expected to improve gradually with newer automated knitting technology.
→Needing around Rs. 150-200 Crores capex primarily on machinery, spread over three years, with a key Rs. 60 Crores phase in FY 2026-27.
→Positive impact anticipated from real-time sales tracking and efficiency improvements.
→Growth is temporarily affected by the American market disruptions but diversification into European markets is underway.
→Cash flows from operations have turned positive in H1 FY 2026, and this trend is expected to sustain with higher volumes and operational efficiency.
→No immediate capital raising planned; machinery suppliers offer deferred payments easing financial pressure.
→With the expanded capacity, new clients will be targeted alongside increasing business with existing clients.

See what Active Clothing Co Ltd said on profitability & margins — free account, 30 seconds.

🏗️ Capital Expenditure Plans

Yes

→The company is undertaking a significant capex related to the rollout of 600+ advanced computerized flat knitting machines under a long-term partnership with Ningbo Shipping Company Limited.
→This "smart knitting" project will cost between Rs. 150 Crores to Rs. 200 Crores, with major investment coming from the machinery supplier side, spread over three years.
→Rs. 60 Crores of capex is planned for FY2026-27 as part of this initiative, mostly for machinery, expected to be live by winter 2026.
→The machinery supplier is providing 5-year deferred payment terms, so no immediate capital raise is planned.
→Apart from the knitting machine expansion, no major additions to printing, dyeing, or finishing lines are planned.
→The capex will support incremental capacity growth, manufacturing automation, technology adoption, and product category expansion especially in the sweater vertical.

💰 Fundraising & Capital Structure

→Currently, the company is not planning any capital raise through debt or equity.
→The additional knitting machines project (600 machines) will be funded by the machinery supplier with a five-year deferred payment facility, eliminating the need for the company to raise capital.
→Rs. 60 Crores capex planned for FY2026-27 related to knitting machines is already in process and expected to be operational in winter 2026, funded internally.
→No mention was made of any plans for new equity or debt fundraising during the call.

See what Active Clothing Co Ltd said on fundraising & capital structure — free account, 30 seconds.

📋 Order Book & Pipeline

→The rollout of 652 knitting machines is underway, expected to be completed over a period of 3 years or a little more.
→Once this rollout is complete, the company anticipates achieving peak total revenue around Rs. 700 Crores.
→Orders are processed on an "against order" basis, meaning the company does not manufacture garments without confirmed orders.
→Sampling for upcoming orders, such as summer 2026, is in progress.
→The Rs. 60 Crores capex related to knitting machines is expected to be operational in the 2026-2027 financial year, contributing to increased capacity.
→Talks and audits are ongoing with new customers, expected to expand the order book post-expansion.
→The company currently supplies to 38 countries and aims to add new clients as capacity increases.

Key Metrics

1 of 5 growth signals positive in the Q2 FY26 call.

Revenue

Rank 3

Margin

Rank 2

Capex

Yes

Fundraise

Order Book

How does Active Clothing Co Ltd rank vs peers in Textiles & Apparels?

Pro feature

1Active Clothing Co Ltd

Rev 3Mar 2

See full Textiles & Apparels sector rankings

Price

₹110

Market Cap

₹180 Cr

P/E Ratio

17.9

Active Clothing Co Ltd — Quarterly revenue & net profit

Revenue Net Profit

Dec 2024

Mar 2025

Jun 2025

Sep 2025

Dec 2025

Mar 2026

Reported quarterly figures (₹ Cr). Latest: revenue ₹73 Cr, net profit ₹2 Cr.

Full financials →

What ACTIVE's management said in earlier quarters

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Frequently Asked Questions

What were Active Clothing Co Ltd Q2 FY26 results?

What is Active Clothing Co Ltd share price analysis?

Active Clothing Co Ltd currently shows a below-average growth signal. The stock trades at a P/E of 17.9 with a market cap of ₹180 Cr. Investors should review the full earnings analysis for detailed insights.

Is Active Clothing Co Ltd planning capital expenditure?

The company is undertaking a significant capex related to the rollout of 600+ advanced computerized flat knitting machines under a long-term partnership with Ningbo Shipping Company Limited. - This "smart knitting" project will cost between Rs.

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This analysis is AI-generated based on publicly available earnings data and concall transcripts. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.