IRIS CLOTHINGS Q2 FY27 CONCALL: REVENUE SURGES 40.3% YOY, MANAGEMENT TARGETS ₹500 CR REVENUE IN TWO YEARS, E-COMMERCE EXPANSION ACCELERATES & INFANTWEAR EMERGES AS KEY GROWTH DRIVER

• MANAGEMENT TARGETS APPROXIMATELY ₹500 CR REVENUE OVER THE NEXT TWO YEARS, SUPPORTED BY MANUFACTURING CAPACITY EXPANSION, STRONGER DOREME BRAND PENETRATION, DIGITAL CHANNEL GROWTH & WIDER DISTRIBUTION • MANAGEMENT EXPECTS STRONGER E-COMMERCE GROWTH OVER THE NEXT 12–18 MONTHS, SUPPORTED BY EXPANSION ACROSS FIRSTCRY, AMAZON, MYNTRA, BIGBASKET & ITS OWN DOREME.IN PLATFORM • MANAGEMENT TARGETS INFANTWEAR REVENUE CONTRIBUTION OF APPROXIMATELY 20% VS CURRENT 12–13%, SUPPORTED BY NEWBORN GIFT SETS, DEDICATED MANUFACTURING CAPACITY & PRODUCT INNOVATION • MANAGEMENT EXPECTS WOVEN APPAREL CONTRIBUTION TO REACH APPROXIMATELY 10% OF REVENUE BY THE END OF NEXT YEAR, DRIVEN BY NEW NIGHTSUITS, PANTS & EXPANSION BEYOND EXISTING KNITTED PRODUCTS • MANAGEMENT PLANS TO INCREASE ADVERTISING EXPENDITURE FROM APPROXIMATELY 2% OF REVENUE TO 3.5% BY FY27-END, SUPPORTING BRAND VISIBILITY, CUSTOMER ACQUISITION & ONLINE SALES GROWTH • MANAGEMENT EXPECTS IMPROVED OPERATING LEVERAGE OVER THE NEXT TWO QUARTERS AS RECENTLY COMMISSIONED MANUFACTURING UNITS ACHIEVE HIGHER UTILISATION & EMPLOYEE PRODUCTIVITY • Q2 TOTAL INCOME SURGED 40.3% YOY TO ₹62.22 CR, WHILE EBITDA STOOD AT ₹9.47 CR WITH AN EBITDA MARGIN OF 15.2% • Q2 NET PROFIT GREW 23.3% YOY TO ₹5.08 CR, WITH PAT MARGIN AT 8.2%, DESPITE HIGHER RAW MATERIAL COSTS, EMPLOYEE EXPENSES & OPERATING INVESTMENTS • H1 REVENUE GREW 33.9% YOY, WHILE EBITDA REACHED ₹17.57 CR WITH MARGIN IMPROVING TO 16% VS 15.1% LAST YEAR • H1 NET PROFIT INCREASED 34.7% YOY TO ₹9.09 CR, WITH PAT MARGIN AT 8.3%, REFLECTING HEALTHY REVENUE GROWTH & IMPROVED HALF-YEAR PROFITABILITY • DIGITAL CHANNELS CURRENTLY CONTRIBUTE APPROXIMATELY 10% OF REVENUE, WITH AMAZON OPERATIONS RECENTLY STARTED, MYNTRA LAUNCH EXPECTED SHORTLY & QUICK-COMMERCE OPERATIONS INITIATED IN BENGALURU & HYDERABAD • MANAGEMENT EXPECTS BETTER MARGINS FROM DIRECT-TO-CONSUMER SALES THROUGH DOREME.IN COMPARED WITH THIRD-PARTY MARKETPLACES, ALTHOUGH DIGITAL ADVERTISING COSTS REMAIN SIGNIFICANT • NEW DEDICATED INFANTWEAR MANUFACTURING FACILITY HAS CAPACITY OF APPROXIMATELY 2,500 PIECES PER DAY, WITH EXPECTED ADDITIONAL ANNUAL REVENUE OF ₹3–4 CR • COMPANY INTRODUCED FOUR-PIECE & SIX-PIECE NEWBORN GIFT SETS, WHILE A NEW IN-HOUSE EMBROIDERY UNIT USING JAPANESE MACHINERY SUPPORTS PRODUCT DIFFERENTIATION & VALUE ADDITION • APPROXIMATELY 15% OF TOTAL REVENUE COMES FROM OUTSOURCED PRODUCTS, WHICH CARRY SLIGHTLY LOWER GROSS MARGINS COMPARED WITH IN-HOUSE MANUFACTURING • MANAGEMENT HAS A LONG-TERM AMBITION TO EXPAND ITS DISTRIBUTION NETWORK TO APPROXIMATELY 300 DISTRIBUTORS & 20,000 RETAIL TOUCHPOINTS, SUPPORTING DEEPER PENETRATION ACROSS INDIA • AVERAGE REVENUE PER DISTRIBUTOR STANDS AT APPROXIMATELY ₹80 LAKH, WHILE HEALTHY RETAIL STORE PRODUCTIVITY IS ESTIMATED AT ₹1,000/SQ. FT./MONTH WITH STORE-LEVEL EBITDA MARGINS OF 15–20% • MANAGEMENT IS EVALUATING EXCLUSIVE BRAND OUTLET & FRANCHISE EXPANSION, WITH ESTIMATED STORE SETUP CAPEX OF ₹2,500–3,000/SQ. FT., ALTHOUGH NO FIRM STORE-OPENING TARGET HAS BEEN ANNOUNCED • COMPANY IS EXPLORING INTERNATIONAL DISTRIBUTION OPPORTUNITIES IN THE MIDDLE EAST & AFRICA FOLLOWING PARTICIPATION IN THE SAUDI FASHION & TEXT EXPO, BUT NO FORMAL EXPORT REVENUE GUIDANCE HAS BEEN PROVIDED • MANAGEMENT IS EVALUATING A NEW GREENFIELD MANUFACTURING PROJECT TO SUPPORT MEDIUM-TERM GROWTH, WITH FINAL CAPEX & FUNDING DECISIONS PENDING; INTERNAL ACCRUALS & DEBT REMAIN POTENTIAL FUNDING SOURCES • MANAGEMENT REPORTED NO LONG-TERM DEBT AT THE TIME OF THE CALL, WHILE WORKING CAPITAL, INVENTORY BUILDUP & SHORT-TERM BORROWINGS REMAIN IMPORTANT MONITORABLES • MANAGEMENT ATTRIBUTED H1 OPERATING CASH FLOW PRESENTATION CONCERNS TO AN INCOMPLETE INFINIA TRANSACTION & EXPECTS RELATED RECLASSIFICATION TO INVESTING CASH FLOW AFTER COMPLETION, SUBJECT TO FINAL RECONCILIATION • MANAGEMENT REMAINS POSITIVE ON REVENUE GROWTH, DIGITAL EXPANSION, INFANTWEAR, NEW PRODUCT CATEGORIES & DISTRIBUTION SCALE-UP, BUT RAW MATERIAL INFLATION, HIGHER ADVERTISING COSTS, WORKING CAPITAL PRESSURE & EXECUTION OF THE ₹500 CR REVENUE AMBITION REMAIN KEY RISKS

IRIS CLOTHINGS LIMITED

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