LAL - Lorenzini Appar.
📢 Recent Corporate Announcements
Lorenzini Apparels Limited has appointed Mr. Ish Sadana and Ms. Monam Kapoor as Additional Directors in the capacity of Non-Executive Independent Directors effective February 14, 2026. Mr. Sadana is a qualified Company Secretary and Lawyer with over 14 years of experience in Corporate Laws and regulatory compliance. Ms. Kapoor has been an Authorized Representative for Techtone (HK) Energy Company since July 2021 and has cleared the IICA Independent Director Examination. Both appointments are for a consecutive term of five years, subject to shareholder approval.
- Appointment of Mr. Ish Sadana and Ms. Monam Kapoor as Non-Executive Independent Directors.
- Mr. Ish Sadana brings over 14 years of experience in legal and corporate governance.
- Ms. Monam Kapoor has served as an Authorized Representative for Techtone (HK) Energy since 2021.
- Both directors are appointed for a fixed term of 5 consecutive years.
Lorenzini Apparels reported a quarterly turnaround with a net profit of ‡109.94 lakhs for Q3 FY26, compared to a net loss of ‡162.44 lakhs in the same period last year. However, revenue from operations saw a slight decline to ‡2,072.60 lakhs from ‡2,127.05 lakhs YoY. The nine-month performance remains weak, with net profit dropping 72% to ‡348.01 lakhs from ‡1,240.37 lakhs in the previous year. Additionally, the company is divesting its 'Mr Button' trademark to a related party for ‡42.46 lakhs.
- Q3 FY26 Net Profit turned positive at ‡109.94 lakhs vs a loss of ‡162.44 lakhs YoY.
- Revenue from operations for Q3 FY26 stood at ‡2,072.60 lakhs, a marginal decline of 2.5% YoY.
- 9M FY26 Net Profit significantly decreased to ‡348.01 lakhs from ‡1,240.37 lakhs in 9M FY25.
- Approved the sale of 'Mr Button' trademark to Mr Button Private Limited (a related party) for ‡42.46 lakhs.
- Earnings Per Share (EPS) for the quarter improved to ‡0.06 from negative ‡0.09 YoY.
Lorenzini Apparels Limited has submitted its compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018. The certificate, issued by the Registrar and Share Transfer Agent, confirms the dematerialization of securities for the quarter and nine months ended December 31, 2025. This is a mandatory regulatory filing to ensure that physical share certificates are correctly processed and updated in the depository records. It reflects standard administrative compliance and does not affect the company's fundamental business operations.
- Compliance certificate submitted for the quarter and nine months ended December 31, 2025.
- Filing adheres to Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018.
- Confirms the cancellation of physical certificates and substitution of depository names in records.
Lorenzini Apparels Limited (LAL) has announced the closure of its trading window for all designated persons starting January 1, 2026. This mandatory regulatory step is taken ahead of the board's consideration and approval of the unaudited financial results for the quarter and nine months ending December 31, 2025. The trading window will remain closed until 48 hours after the results are declared to the stock exchanges. The specific date for the board meeting to approve these results will be communicated separately in due course.
- Trading window closure effective from January 1, 2026.
- Closure pertains to the financial results for the quarter and nine months ended December 31, 2025.
- Trading restriction applies to Promoters, Directors, KMPs, and designated employees.
- Window to reopen 48 hours after the official announcement of financial results.
- PAN of designated persons will be frozen by the Depository during this period per SEBI guidelines.
Financial Performance
Revenue Growth by Segment
The company operates in a single reportable segment (Apparels). Total turnover increased by 15.82% YoY, rising from INR 5,475.92 lakhs in the previous year to INR 6,342.04 lakhs in FY 2024-25.
Geographic Revenue Split
Not disclosed in available documents; however, the company is headquartered in New Delhi with operations in Mumbai.
Profitability Margins
Net profit margin stood at 9.20% in FY 2024-25, a slight contraction from 9.67% in the previous financial year. Net profit grew by 10.19% YoY to INR 583.64 lakhs from INR 529.66 lakhs.
EBITDA Margin
Operating profit before working capital changes for the half-year ended September 30, 2025, was INR 130.26 lakhs, representing a significant 91.59% decrease from INR 1,549.45 lakhs in the same period of the previous year.
Capital Expenditure
The company invested INR 28.95 lakhs in the purchase of fixed assets during the half-year ended September 30, 2025. Total Property, Plant and Equipment (PPE) stood at INR 289.23 lakhs as of March 31, 2025.
Credit Rating & Borrowing
The company has sanctioned working capital limits exceeding INR 500 lakhs (INR 5 crore) from banks, secured against current assets. Interest and finance charges for H1 FY26 were INR 47.34 lakhs, down 28.9% from INR 66.61 lakhs YoY.
Operational Drivers
Raw Materials
Materials for apparel manufacturing (fabrics, yarn, and accessories) constitute the primary input, though specific material-wise cost percentages are not detailed.
Capacity Expansion
The company raised INR 2,100 lakhs through a preferential issue of equity shares for specific business objectives. As of March 31, 2025, INR 1,653.72 lakhs had been utilized, with INR 446.28 lakhs temporarily parked in quoted equity shares pending deployment.
Raw Material Costs
Not disclosed as a specific percentage of revenue, but the company noted variances in stock statements submitted to banks (up to 14.19% in June 2024) due to adjustments in customer advances and trade payables.
Manufacturing Efficiency
The company employs 95 staff members, of which 86.3% (82 employees) are unskilled, indicating a high reliance on manual labor for garment production.
Strategic Growth
Expected Growth Rate
15.82%
Growth Strategy
Growth is driven by a preferential issue of INR 2,100 lakhs to fund specific expansion objectives. Management is focusing on maintaining steady revenue despite challenging economic conditions and is relentlessly striving for business betterment through improved operational performance.
Products & Services
Apparels and garments, specifically marketed under the Monteil brand.
Brand Portfolio
Monteil
Market Expansion
The company is targeting growth in the forthcoming year through the deployment of preferential issue proceeds, though specific regional targets are not listed.
External Factors
Industry Trends
The apparel industry is facing challenging economic conditions; however, LAL is maintaining steady revenue and profit. The industry is evolving toward more structured financial reporting and internal controls as evidenced by the company's adoption of Ind AS.
Competitive Moat
The company's moat is built on its 'Monteil' brand and its ability to raise significant capital (INR 2,100 lakhs) for expansion. Sustainability depends on the effective deployment of these funds into productive assets.
Macro Economic Sensitivity
High sensitivity to inflation and general economic trends which impact consumer discretionary spending on apparel.
Consumer Behavior
Demand is sensitive to economic cycles and inflationary pressures on household budgets.
Regulatory & Governance
Industry Regulations
Compliant with the Companies Act, 2013, and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company maintains an ISO 9001:2015 certification for quality management.
Taxation Policy Impact
The company paid/provided for taxes of INR 11.60 lakhs in H1 FY26. It complies with Ind AS 108 for segment reporting.
Legal Contingencies
The company has disclosed the impact of pending litigations in Note 37 of its financial statements, though the specific INR value of these contingencies is not provided in the summary.
Risk Analysis
Key Uncertainties
The primary uncertainty is the deployment of the remaining INR 446.28 lakhs from the preferential issue and the impact of inflation on consumer demand, which could impact revenue by an estimated 5-10% if trends worsen.
Geographic Concentration Risk
Operations are concentrated in New Delhi (Okhla Industrial Area) and Mumbai.
Third Party Dependencies
Dependency on banks for working capital limits exceeding INR 500 lakhs.
Technology Obsolescence Risk
The company faces risks related to internal financial controls; however, auditors have currently issued an unmodified opinion on their effectiveness.
Credit & Counterparty Risk
Trade receivables stood at a significant level, with a decrease of INR 436.11 lakhs noted in the cash flow statement for H1 FY26, indicating active collection efforts.