Iris Clothings Ltd. (IRISDOREME) AI Stock Analysis

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Iris Clothings Ltd.

(NSE:IRISDOREME)

Select Model

Rating:57Neutral

Price Target:INR 56.00▲(3.28% Upside)

Action:reiterated

Date:09/06/26

The score is driven primarily by mixed financial performance: strong growth and improved leverage are outweighed by negative operating cash flow/deeply negative free cash flow and margin volatility. Technicals remain trend-positive but are overbought, while valuation is the key additional headwind due to the very high P/E and no dividend support.

Positive Factors

Accelerating Revenue GrowthRevenue growth has accelerated across the latest reported periods, indicating expanding demand for the company’s apparel products. Sustained top-line momentum can improve operating scale, support reinvestment, and strengthen Iris Clothings’ ability to build a larger market position over the next several quarters.

Negative Factors

Negative Operating Cash FlowNegative operating cash flow and substantial free-cash-flow burn weaken the quality of reported earnings and reduce internally generated funding. If this pattern persists, the company may have less flexibility to finance expansion, manage working-capital needs, or absorb operational setbacks without external funding.

Iris Clothings Ltd. (IRISDOREME) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 9.92B
Dividend Yield: ―
Average Volume (3M): 956.71K
Price to Earnings (P/E): 55.9
Beta (1Y): 1.00
Revenue Growth: 40.72%
EPS Growth: -27.27%
Country: India
Employees: 1,760
Sector: General
Sector Strength: 55
Industry: Apparel - Manufacturers

Iris Clothings Ltd. Business Overview & Revenue Model

Company Description

Iris Clothings Limited is an Indian firm, based in Howrah, that focuses on the creation, production, and distribution of ready-to-wear garments. The company's extensive collection includes tops, t-shirts, shorts, trousers, loungewear/nightwear sets,...

How the Company Makes Money

Iris Clothings Ltd. primarily makes money by selling manufactured apparel/clothing products to customers (typically through business-to-business supply arrangements). Revenue is generated when the company fulfills orders and invoices buyers for finis...

Iris Clothings Ltd. Financial Statement Overview

Summary

Strong, accelerating revenue growth and rising net income support the score, and leverage improved sharply in 2026 (lower debt-to-equity). However, financial quality is held back by materially weakened cash generation in 2026 (negative operating cash flow and deeply negative free cash flow) and a notable 2026 gross margin step-down, indicating higher earnings/cash-flow risk despite growth.

Income Statement

72Positive

Balance Sheet

78Positive

Cash Flow

34Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	2.01B	1.91B	1.46B	1.22B	1.13B	1.10B
Gross Profit	494.90M	469.40M	696.43M	278.43M	512.59M	477.47M
EBITDA	321.93M	294.39M	280.09M	264.27M	195.06M	215.59M
Net Income	175.75M	161.92M	131.22M	122.12M	82.59M	101.47M
Balance Sheet
Total Assets	0	2.04B	1.57B	1.33B	1.09B	937.89M
Cash, Cash Equivalents and Short-Term Investments	10.73M	10.73M	9.20M	15.78M	14.72M	14.21M
Total Debt	0	343.13M	504.30M	441.95M	350.99M	327.66M
Total Liabilities	-1.42B	619.64M	744.82M	640.76M	523.59M	450.99M
Stockholders Equity	1.42B	1.42B	822.84M	691.62M	569.50M	486.91M
Cash Flow
Free Cash Flow	-164.05M	-260.76M	16.90M	-10.19M	-7.16M	-37.04M
Operating Cash Flow	-135.74M	-93.03M	25.35M	17.12M	12.83M	9.62M
Investing Cash Flow	-28.15M	-168.25M	365.00K	-27.16M	-19.82M	-45.02M
Financing Cash Flow	163.91M	262.29M	-25.37M	10.28M	6.76M	35.22M

Iris Clothings Ltd. Technical Analysis

Technical Analysis SentimentNeutral

Last Price54.22

Price Trends

50DMA60.07Negative

100DMA53.14Positive

200DMA43.35Positive

Market Momentum

MACD-1.35Positive

RSI38.50Neutral

STOCH28.66Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:IRISDOREME, the sentiment is Neutral. The current price of 54.22 is below the 20-day moving average (MA) of 58.63, below the 50-day MA of 60.07, and above the 200-day MA of 43.35, indicating a neutral trend. The MACD of -1.35 indicates Positive momentum. The RSI at 38.50 is Neutral, neither overbought nor oversold. The STOCH value of 28.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:IRISDOREME.

Iris Clothings Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:IRISDOREME against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:CHEVIOT	81Outperform	INR 6.24B	9.20	―	2.35%	28.81%	13.91%
IN:RSWM	68Neutral	INR 8.43B	13.31	―	―	-5.08%	―
IN:RUBYMILLS	62Neutral	INR 15.86B	36.67	―	0.53%	43.42%	-5.19%
IN:IRISDOREME	57Neutral	INR 10.32B	55.90	―	―	40.72%	-27.27%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:PRECOT	52Neutral	INR 7.23B	14.13	―	0.66%	-1.31%	47.06%
IN:SUTLEJTEX	50Neutral	INR 5.57B	-9.99	―	―	1.71%	36.44%

* General Sector Average

Performance Comparison

IN:IRISDOREME and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:IRISDOREME	Iris Clothings Ltd.	54.22	21.20	64.20%
IN:CHEVIOT	Cheviot Co. Ltd.	1068.05	-47.85	-4.29%
IN:PRECOT	Precot Ltd.	602.20	110.47	22.47%
IN:RSWM	RSWM Ltd	178.95	25.60	16.69%
IN:RUBYMILLS	Ruby Mills Limited	474.35	244.11	106.02%
IN:SUTLEJTEX	Sutlej Textiles & Industries Ltd.	34.00	-1.30	-3.68%

Iris Clothings Ltd. Corporate Events

Iris Clothings Posts Strong Q2 FY27 Results as Expansion Strategy Gains Momentum

Oct 27, 2026

Iris Clothings reported a strong second quarter for FY27, with total income rising 40.3% year-on-year to Rs 6,222 lakh and H1 FY27 income up 33.9% to Rs 10,951 lakh, alongside a 42.3% jump in H1 EBITDA to Rs 1,757 lakh and a 34.7% increase in H1 PAT...

Iris Clothings Boosts Doreme’s Reach with Amazon E-Commerce Tie-Up

Sep 21, 2026

Iris Clothings has entered into a partnership with Amazon to sell its Doreme kids wear products on the e-commerce giant’s platform, advancing the company’s digital expansion strategy. The deal is aimed at boosting Doreme’s online vi...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Sep 06, 2026

Iris Clothings Ltd. AI Stock Analysis

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