Zodiac Clothing's Q1 FY25 Performance: Sales Edge Up, Profits Take a Hit

Zodiac Clothing Company Limited, a prominent name in the Indian apparel sector, has unveiled its standalone financial results for the first quarter of the fiscal year 2025, ending June 30, 2025. The period presented a mixed bag for the company, showcasing a modest uptick in revenue alongside a notable dip in profitability.

For Q1 FY25, Zodiac Clothing reported net sales of Rs 39.03 crore.

This represents a healthy 3.53% increase when compared to Rs 37.70 crore recorded in the corresponding quarter of the previous fiscal year (June 2024). This growth in sales indicates continued market presence and demand for the company's offerings, even in a dynamic retail landscape.

However, the brighter picture on the revenue front was shadowed by a significant contraction in net profit.

The company posted a net profit of Rs 0.81 crore for the June 2025 quarter, a substantial decrease of 54.49% from the Rs 1.78 crore profit achieved in Q1 FY24. This sharp decline in the bottom line suggests increased operational costs, competitive pressures, or other financial adjustments impacting overall profitability during the period.

Further insights into the company's operational efficiency come from its Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA).

Zodiac Clothing's EBITDA stood at Rs 4.41 crore for Q1 FY25, marking a 24.36% decline from Rs 5.83 crore reported in the same quarter last year. The shrinking EBITDA often points to higher operating expenses relative to revenue, which could be a factor contributing to the reduced net profit.

Consequently, the Earnings Per Share (EPS) for the company also saw a significant reduction.

For the quarter ending June 2025, the EPS was Rs 0.45, a considerable drop from Rs 0.99 in the quarter ending June 2024. This metric further underscores the challenges Zodiac Clothing faced in converting revenue into shareholder earnings during the period.

In summary, Zodiac Clothing's performance in the first quarter of fiscal year 2025 highlights a resilient sales performance, managing to grow its top line despite prevailing economic conditions.

Nevertheless, the substantial decline in both net profit and EBITDA signals potential headwinds in cost management or pricing power. Investors and market watchers will keenly observe how the company plans to address these profitability challenges in the upcoming quarters while striving to maintain its revenue momentum.