Celebrity Fashions reported a standalone net loss of ₹1.62 crore for the quarter ended March 2026, representing a 25% improvement from the net loss of ₹2.15 crore recorded in the corresponding quarter of the previous year. According to reports from Business Standard, the company's sales declined 15.57% to ₹43.49 crore during the March 2026 quarter compared to ₹51.51 crore in the March 2025 quarter. The company's operating profit margin (OPM) improved to 1.49% from 2.02% in the previous year, while PBDT (Profit Before Depreciation and Tax) turned positive at ₹0.64 crore compared to a loss of ₹0.63 crore in March 2025. However, the latest results reveal sequential revenue decline of 4.16% from ₹45.38 crore in Q3 FY26, indicating weakening demand conditions and intensifying competitive pressures in the garments export market.
For the full financial year ended March 2026, Celebrity Fashions reported a net loss of ₹15.72 crore, which was 14% lower than the net loss of ₹18.26 crore recorded in the previous financial year. As reported by Business Standard, the company's annual sales grew 4.11% to ₹172.06 crore in FY2026 compared to ₹165.26 crore in FY2025. The company's PBDT for the full year improved significantly to ₹11.60 crore from a loss of ₹11.99 crore in the previous year, indicating better operational performance despite the annual net loss.
The company's operational metrics show mixed results with cost management efforts failing to translate into profitability improvements. According to the latest financial data, employee costs declined to ₹11.75 crore in Q4 FY26 from ₹15.36 crore in the year-ago quarter**, reflecting potential workforce rationalisation or reduced production activity. However, this cost reduction was offset by interest costs of ₹1.54 crore and depreciation of ₹0.98 crore, which continued to weigh heavily on the bottom line. The profit after tax margin of -3.72% in Q4 FY26, while improved from -7.54% in Q3 FY26, remains deeply negative, indicating the company is burning cash at the operational level. The absence of any tax expense across all quarters reflects the company's loss-making status, which prevents it from generating any tax liabilities.
The stock has plummeted 38.27% over the past year, closing at ₹7.79 on May 15, 2026, significantly underperforming both the Sensex and its sector peers. The micro-cap company, with a market capitalisation of just ₹53.00 crore, faces mounting operational pressures as evidenced by consecutive quarterly losses throughout FY26. The company's debt-to-EBITDA ratio averaged 6.20 times, significantly above healthy benchmarks and indicating that the company would require over six years of current EBITDA generation to repay its debt obligations. With negative EBITDA in recent quarters, this metric becomes even more concerning, suggesting potential debt servicing challenges ahead. The garments and apparels sector has faced considerable headwinds with changing global demand patterns, rising input costs, and intensifying competition from regional manufacturers impacting Indian exporters.
