Garment Mantra Lifestyle Ltd. shares surged 6.25% to ₹1.19 today, building on recent momentum and showing a 7.21% increase over the last one week. The stock's positive performance comes after the company announced securing a significant export order, with trading volume reaching 7.01 lakh shares, a 16.37% increase compared to the average volume over the past week. Despite the positive stock movement, the company experienced a sharp decline of 26.09% year-over-year, underperforming the 8.17% loss registered by the NIFTY50 index.
Garment Mantra Lifestyle has secured a significant export order worth ₹103.70 crore (US$10,80,920) from Zaara Overases F.Z.E., marking a positive start to the festive season, according to Managing Director Mr. Prem Aggarwal. This new contract covers polyester printed fabrics and cotton embroidery made-ups, with delivery scheduled by December 31, 2026. The order represents approximately 13.9% of the company's average quarterly revenue of ₹74.75 crore, demonstrating the substantial nature of this new business win.
The company's total disclosed order book now stands at ₹300 million, providing revenue visibility for the remainder of the financial year and highlighting customer confidence in the Tirupur-based apparel manufacturer's capabilities. This updated figure combines the latest ₹103.70 crore order with existing backlog, resulting in a book-to-bill ratio of approximately 0.06x against trailing twelve-month revenue of ₹299.0 crore. The total order book represents only 0.25 quarters of average quarterly revenue, indicating that while the immediate pipeline is thin, the company continues to secure incremental export deals despite maintaining a lean backlog.
The company maintains a strong liquidity position with a current ratio of 2.84x, providing ample buffer for working capital needs. Total Liabilities/Equity stands at a conservative 0.47x, indicating low leverage. Operating cashflow in FY25 was positive at ₹15.00 crore, supporting the view that the business can fund its operations without excessive reliance on external financing. Recent quarterly performance shows volatility in profitability, with Q1FY27 returning to profitability at ₹2.80 crore net profit following a significant net loss in Q4FY26.
The company has demonstrated strong revenue growth, with annual revenue expanding from ₹132.80 crore in FY25 to ₹262.02 crore in FY26, representing a YoY growth of +97.3%. This sharp revenue expansion contrasts with the modest order book visibility, suggesting high turnover or project-based execution cycles rather than long-term multi-year contracts. The latest order inflow velocity has accelerated, with the single ₹103.70 crore order from Zaara Overases F.Z.E. exceeding the total inflow recorded in Q1FY27, indicating the company's ability to win significant export contracts despite a lean backlog.
