MUMBAI: Zodiac’s stars aren’t exactly aligned this season. Zodiac Clothing Company Limited stitched up higher revenues in Q1 FY26 but couldn’t keep the red off its books, posting a consolidated net loss of Rs 862.77 crore for the quarter ended 30 June 2025. That’s deeper than the Rs 764.20 crore loss in the March quarter, though slightly better than the Rs 942.34 crore loss a year earlier.
Revenue from operations edged up to Rs 3,902.78 crore from Rs 3,769.68 crore in Q1 FY25, boosted by steady sales momentum. Other income, however, more than halved year-on-year to Rs 224.75 crore from Rs 598.27 crore. Total income came in at Rs 4,127.53 crore, down from Rs 4,367.95 crore last year.
Expenses remained the fashion faux pas surging to Rs 4,971.89 crore. Raw material costs alone stood at Rs 1,408.38 crore, with employee benefits at Rs 1,170.24 crore, depreciation at Rs 534.91 crore, and finance costs climbing to Rs 237.89 crore. Other expenses, including marketing and overheads, were a hefty Rs 1,633.45 crore.
Margins told their own style story. Inventory changes shaved off Rs 61.57 crore from costs this quarter compared to a Rs 368.02 crore inventory drawdown last year. Still, the operating runway was too tight to avoid losses.
The company’s tax expense swung to Rs 18.41 crore from a credit of Rs 30.79 crore in March, leaving a bottom line firmly in negative territory. Basic and diluted earnings per share came in at a loss of Rs 3.32, against a Rs 3.63 loss per share last year.
On the balance sheet, equity capital held steady at Rs 2,599.37 crore, with other equity at Rs 15,366.02 crore. Comprehensive losses for the quarter stood at Rs 947.87 crore, factoring in an Rs 85.10 crore hit from other comprehensive income items, including swings in investment valuations and currency movements.
For now, Zodiac may have pulled in sales, but with costs outpacing the catwalk, the label’s financials are still very much in last season’s colours.
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