Active Clothing

- 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.

- 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.

- 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.

- 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.

- 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.