FAZE3Q - Faze Three
📢 Recent Corporate Announcements
Faze Three Limited has scheduled a virtual meeting with institutional investors and analysts for March 11, 2026. The company will be participating in the 'Arihant Capital Bharat Connect Conference: Rising Stars - 2026'. Management intends to discuss publicly available information and refer to the investor presentation previously filed on February 13, 2026. This interaction is part of the company's routine engagement with the investor community to improve market visibility.
- Scheduled to attend the Arihant Capital Bharat Connect Conference on March 11, 2026
- The meeting will be conducted virtually with an investor group
- Discussions will be based on the investor presentation released on February 13, 2026
- No unpublished price sensitive information (UPSI) is intended to be shared during the session
Faze Three Limited reported a robust 35% YoY revenue growth for 9M FY26, reaching ₹652.4 Cr, which exceeded its initial guidance of 22-25%. However, profitability was significantly impacted by punitive 50% US tariffs and currency volatility, leading to a decline in 9M PAT to ₹14.0 Cr from ₹23.2 Cr in the previous year. The management is optimistic about a margin recovery starting Q4 FY26 following the India-USA trade deal and expects 18-20% revenue growth in FY27. With ₹300 Cr invested in expansion since FY19, the company has significant unutilized capacity (30-60%) to support future growth.
- 9M FY26 revenue grew 35% YoY to ₹652.4 Cr, surpassing management's earlier guidance.
- 9M FY26 PAT fell to ₹14.0 Cr from ₹23.2 Cr due to margin compression from US tariffs and MTM losses on forwards.
- Management guides for 18-20% revenue growth in FY27, supported by trade deals with USA, EU, and UK.
- Significant capacity headroom available with current utilization at 60% for Silvassa and 50% for Panipat units.
- USA business share increased to 65% of total income in 9M FY26 compared to 60% in FY25.
Faze Three reported a strong 27.3% YoY increase in standalone revenue for Q3 FY26, reaching ₹216.56 crore. The company successfully returned to profitability on a sequential basis with a net profit of ₹5.29 crore, recovering from a loss of ₹4.36 crore in Q2 FY26. However, on a year-on-year basis, net profit saw a significant decline from ₹11.79 crore in Q3 FY25. The nine-month performance highlights robust top-line growth of 35% YoY, though bottom-line margins were pressured by a ₹11.50 crore realized loss on derivative contracts.
- Standalone Revenue from operations grew 27.3% YoY to ₹216.56 crore in Q3 FY26.
- Net Profit for Q3 FY26 stood at ₹5.29 crore, a recovery from the previous quarter's loss but down 55% YoY.
- Nine-month revenue reached ₹621.84 crore, up from ₹460.12 crore in the corresponding period last year.
- Profitability was impacted by a ₹11.50 crore realized loss on USD-INR derivative contracts during the nine-month period.
- Total expenses for the quarter rose to ₹212.63 crore, driven by higher raw material costs and other operational expenses.
Faze Three Limited has announced the re-appointment of M/s. N. A. Shah & Associates LLP as its Internal Auditors for the financial year 2025-26. The decision was finalized during the Board of Directors meeting held on February 12, 2026. The appointed firm is a well-established Mumbai-based entity, operating since 1965 with a team of 10 partners and over 100 chartered accountants. This move ensures continuity in the company's internal audit and compliance processes.
- Re-appointment of N. A. Shah & Associates LLP as Internal Auditors for the full 2025-26 financial year.
- The auditing firm has been in operation since 1965 and maintains a team of 10 partners.
- The firm employs over 100 chartered accountants specializing in audit, tax, and business advisory.
- The appointment was made in compliance with Regulation 30 of SEBI (LODR) Regulations, 2015.
Faze Three Limited has approved its unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025. The board meeting, held on February 12, 2026, also confirmed the re-appointment of M/s. N. A. Shah & Associates LLP as the company's internal auditor for the financial year 2025-26. The results have been subjected to a limited review by the statutory auditors, MSKA & Associates LLP. This announcement is a routine regulatory filing following the conclusion of the third quarter of the fiscal year.
- Approved Un-Audited Standalone and Consolidated Financial Results for the quarter ended December 31, 2025
- Re-appointed M/s. N. A. Shah & Associates LLP as Internal Auditor for FY 2025-26
- Statutory Auditors M/s. MSKA & Associates LLP provided the Limited Review Report for the period
- Board meeting commenced at 05:00 PM and concluded at 05:41 PM on February 12, 2026
Faze Three Limited (FAZE3Q) has responded to a clarification request from the National Stock Exchange regarding recent significant movements in its stock price. The company stated that it has consistently disclosed all material information and events as required under SEBI Regulation 30. They confirmed that there is currently no pending material information or event that could impact the stock's performance or operations. This response is a standard regulatory procedure aimed at ensuring market transparency and safeguarding investor interests.
- NSE sought clarification on February 05, 2026, regarding significant price movement in FAZE3Q shares.
- Company submitted a formal response on February 06, 2026, denying any undisclosed material developments.
- Management confirmed full compliance with Regulation 30 of SEBI (LODR) Regulations, 2015.
- The company maintains that all information bearing on operations or performance has been disclosed promptly to the exchange.
Faze Three Limited has notified the stock exchanges that its statutory auditor, MSKA & Associates, has converted from a partnership firm into a Limited Liability Partnership (LLP) effective January 13, 2026. The firm is now officially known as MSKA & Associates LLP with the updated ICAI registration number 105047W/W101187. This is a structural change within the auditing firm and does not result in any change to the existing audit engagement or the personnel handling the company's accounts. The auditors will continue to discharge their obligations for the remainder of their current tenure.
- Statutory Auditor MSKA & Associates converted to MSKA & Associates LLP effective January 13, 2026.
- The ICAI Firm Registration Number has been updated to 105047W/W101187.
- The company confirmed there is no change in the existing audit engagement or tenure.
- The notification was filed with BSE and NSE on January 28, 2026, following the auditor's internal transition.
Faze Three Limited has submitted its quarterly compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018 for the period ended December 31, 2025. The certificate, issued by MUFG Intime India Private Limited, confirms that all dematerialization requests were processed within the mandated timelines. It verifies that physical security certificates were mutilated and cancelled after verification, and the depositories' names were updated in the register of members. This is a standard administrative filing required by SEBI to ensure the integrity of the dematerialization process.
- Compliance certificate submitted for the quarter and nine months ended December 31, 2025.
- Issued by Registrar and Share Transfer Agent, MUFG Intime India Private Limited (formerly Link Intime).
- Confirms dematerialization requests were accepted or rejected within prescribed timelines.
- Verification that security certificates were mutilated and cancelled after due verification by the depository participant.
Faze Three Limited has informed the stock exchanges about a change in the contact information for its Registrar and Transfer Agent (RTA), MUFG Intime India Private Limited. The RTA, formerly known as Link Intime India Private Limited, has updated its official email address and contact number for investor grievances. Shareholders should now use the email Investor.helpdesk@in.mpms.mufg.com and the phone number +91 8108116767 for all registry-related queries. This is a routine administrative update and does not affect the company's financial operations or business strategy.
- RTA MUFG Intime India Private Limited (formerly Link Intime) has updated its contact details.
- New investor helpdesk email address is Investor.helpdesk@in.mpms.mufg.com.
- New contact phone number for the RTA is +91 8108116767.
- The update was officially communicated to BSE and NSE on January 03, 2026.
Faze Three Limited has officially announced the closure of its trading window for all designated persons starting January 1, 2026. This move is in compliance with SEBI (Prohibition of Insider Trading) Regulations, 2015, ahead of the company's Q3 and nine-month financial results for the period ending December 31, 2025. The window will remain closed until 48 hours after the board meeting results are publicly disclosed. The specific date for the board meeting to approve these financial results will be communicated at a later time.
- Trading window closure begins on January 1, 2026, for directors, promoters, and designated persons.
- Closure is related to the consideration of un-audited financial results for the quarter and nine months ended December 31, 2025.
- The window will reopen 48 hours after the conclusion of the upcoming Board of Directors meeting.
- The announcement follows mandatory compliance under SEBI (Prohibition of Insider Trading) Regulations, 2015.
Faze Three Limited reported that GST officials conducted a search and inspection at its corporate offices in Mumbai on December 24, 2025. The inspection, carried out under Section 67(2) of the Maharashtra GST Act, involved the verification and collection of GST records and Books of Accounts. The company stated that the search was completed on the same day and has not disrupted regular business operations. Management currently expects no material financial impact from these proceedings and maintains that the company follows high compliance standards.
- Inspection conducted at two corporate locations in Mumbai on December 24, 2025
- Action initiated under Section 67(2) of the Maharashtra Goods and Services Tax Act, 2017
- GST officials collected GST records, Books of Accounts, and other relevant information
- Company reports no disruption to regular operations and expects no material financial impact
- No official document regarding specific violations has been issued by authorities yet
Financial Performance
Revenue Growth by Segment
The company operates in a single reportable segment: manufacturing of home textiles. Total income grew by 22.6% YoY to INR 701.7 Cr in FY25 compared to INR 572.3 Cr in FY24. For the TTM period ending September 2025, revenue reached INR 819.7 Cr, representing a 16.8% growth over the previous TTM period.
Geographic Revenue Split
The company has a high geographical concentration with exports to the US accounting for over 50% of its total revenue over the last three years. The remaining revenue is derived from other international markets and domestic sales through its subsidiary, Mats and More Private Limited.
Profitability Margins
Net profit margins have seen a downward trend, declining from 8.15% in FY24 to 5.79% in FY25, and further to 5.25% for the TTM ending September 2025. This decline is attributed to rising raw material costs and one-time expenses related to US showroom setup and capacity operationalization.
EBITDA Margin
EBITDA margin moderated to 13.14% in FY25 from 16.47% in FY24, a decrease of 333 bps. Core profitability was impacted by a 300 bps moderation in PBILDT margins due to global supply chain bottlenecks and raw material price volatility. TTM Sep 2025 EBITDA margin stands at 12.47%.
Capital Expenditure
The company has invested in operationalizing new capacity in Panipat and setting up a showroom in the US. While specific total INR Cr for planned CAPEX is not fully disclosed, the company maintains a long-term debt-free capital structure to support these expansions.
Credit Rating & Borrowing
CARE Ratings reaffirmed 'CARE A; Stable / CARE A1' for bank facilities totaling INR 165.00 Cr as of August 2024. The company has no outstanding term debt, and its adjusted overall gearing stood at 0.56x as of March 31, 2025.
Operational Drivers
Raw Materials
Key raw materials include polyester and cotton-based textiles. Polyester prices have recently increased, impacting margins. Raw materials represent a significant portion of the cost structure, though the exact percentage of total cost for each is not disclosed.
Import Sources
Manufacturing is concentrated in India across 8 facilities located in Dadra and Nagar Haveli, Gujarat, Haryana, and Maharashtra. Specific import countries for raw materials are not disclosed, but the company manages a global supply chain.
Capacity Expansion
The company operates 8 state-of-the-art manufacturing facilities. Recent expansions include the operationalization of new capacity in Panipat to handle larger volumes of value-added home and technical textiles. Current MTPA/unit capacity is not specified.
Raw Material Costs
Raw material costs are subject to high volatility. In FY24, volume growth of 5% was offset by declining realizations due to the normalization of raw material prices. Procurement strategies focus on managing gross margin stabilization amidst global supply chain bottlenecks.
Manufacturing Efficiency
The company is focusing on enhancing its ability to deliver larger volumes in core focus areas of value-added home and technical textiles. Capacity utilization is expected to increase with the addition of new customers and product categories.
Strategic Growth
Expected Growth Rate
16.80%
Growth Strategy
Growth will be driven by the 'China Plus One' strategy adopted by international customers, increasing utilization of newly added capacities in Panipat, and the addition of new customers. The company is also expanding its product categories into technical textiles and patio mats through its subsidiary Mats and More Private Limited.
Products & Services
Value-added home textiles, technical textiles, mats, rugs, and patio mats.
Brand Portfolio
Faze Three, Mats and More.
New Products/Services
Expansion into technical textiles and patio mats. The company is leveraging enhanced design and development capabilities to turnaround new products faster based on customer projections.
Market Expansion
Targeting increased market share in the US through a new showroom and leveraging the 'China Plus One' shift to capture more volume from reputed international retailers.
Strategic Alliances
The company operates through subsidiaries including Faze Three US LLC and Mats and More Private Limited to manage international distribution and specific product lines.
External Factors
Industry Trends
The home textile industry is benefiting from a shift in global sourcing away from China. Faze Three is positioning itself by expanding capacity and focusing on value-added technical textiles to capture this growing demand.
Competitive Landscape
Competes with other Indian and global home textile manufacturers. Competitive dynamics are driven by the ability to manufacture large volumes and fast design turnaround.
Competitive Moat
The moat is built on 30+ years of operational experience, long-term relationships with global retailers, and a debt-free capital structure. These advantages are sustainable due to high entry barriers in large-scale retail supply chains.
Macro Economic Sensitivity
Highly sensitive to global economic cycles and consumer spending in the US market. Revenue growth is linked to the 'China Plus One' geopolitical strategy.
Consumer Behavior
Demand is driven by international retail trends in home decor and functional textiles like patio mats.
Geopolitical Risks
Significant risk from US-China trade relations and potential tariff-related uncertainties which could pressure profitability and debt coverage metrics.
Regulatory & Governance
Industry Regulations
Operations are subject to manufacturing standards and export-import regulations. The company emphasizes ethical business practices and compliance with all applicable statutes.
Taxation Policy Impact
The effective tax rate is reflected in the PBT of INR 52.7 Cr vs PAT of INR 40.7 Cr for FY25, implying a tax rate of approximately 22.8%.
Risk Analysis
Key Uncertainties
Tariff-related uncertainties in the US market and raw material price volatility (polyester/cotton) are the primary risks, with potential to impact margins by 300-400 bps.
Geographic Concentration Risk
Over 50% of revenue is concentrated in the US market.
Third Party Dependencies
Dependency on international retailers for stable revenue visibility; however, the customer base is described as 'wide' and 'diversified'.
Technology Obsolescence Risk
Low risk in textiles, but the company mitigates this through constant investment in state-of-the-art manufacturing facilities and design capabilities.
Credit & Counterparty Risk
Trade receivables stood at INR 90.83 Cr as of March 2025. The company deals with reputed international retailers, which generally implies higher receivable quality.