Active Clothing Co FY26 Results and AGM Update

Net profit grew 18.9% to Rs 10.05 crore in FY26, with net sales reaching Rs 316.44 crore.

Reader Takeaway: Steady profit growth and successful product diversification are offset by the lack of a dividend recommendation.

What just happened

Active Clothing Co. Limited has issued its notice for the 24th Annual General Meeting (AGM) scheduled for September 25, 2026. The filing includes the company's full-year performance for FY26, highlighting growth across key financial metrics despite a challenging apparel market environment. No dividend was recommended for the period.

Why this matters

The company saw a 6.85% rise in net sales to Rs 316.44 crore. Profitability improved at a faster rate, with Profit After Tax climbing nearly 19% to Rs 10.05 crore. This suggests better margin management or operational efficiency during the fiscal year. Shareholders will vote on the re-appointment of director Renu Mehra at the upcoming AGM.

Business and Operational Performance

Active Clothing continues its shift toward a broader integrated design-to-manufacturing model. Management has successfully expanded its catalog beyond traditional sweaters and jackets into athleisure, knitted accessories, and toys. To manage energy costs, the firm has commissioned a 500 KW solar rooftop project that now fulfills 50% of its annual power needs.

Corporate Action

The company is aggressively positioning for growth through a preferential issue of 20 lakh convertible warrants at Rs 115 per share. With 25% of the capital already collected, the infusion is earmarked for working capital and operational expansion.

Risks to watch

While the company maintains a stable CRISIL BBB rating, the absence of a dividend payout might disappoint income-focused retail investors. Future growth remains heavily dependent on the successful deployment of the funds raised via the warrant issue and the ability to scale new product categories like athleisure in a competitive market.