2,272% Profit Growth: Textile Stock Hits 20% After Announcing Robust Q3 Results

Synopsis: A penny-cap textile stock hit a 20% upper circuit after posting strong Q3 results, with revenue jumping 348% year-on-year and net profit surging 2,272%, driven by sharp operational scale-up and margin improvement.

A penny-cap company that is in the business of manufacturing, selling and distribution of fabrics, hosiery garments, and providing related services has come into the spotlight after its stock hit a 20 percent upper circuit following the announcement of its Q3 results.

With a market capitalization of Rs. 70.67 crore, the shares of Garment Mantra Lifestyle Limited were trading at Rs. 1.65, hitting upper circuit of 20 percent from its previous day’s closing price of Rs. 1.38 per equity share. 

Q3FY26 Results

The company delivered a sharp jump in revenue in Q3FY26, with revenue surging to Rs. 98.91 crore, registering a strong 348.4 percent YoY growth compared to Rs. 22.06 crore in Q3FY25, and a solid 52.1 percent QoQ increase over Rs. 65.02 crore in Q2FY26. The sharp rise reflects significant scale-up in operations and strong execution during the quarter.

EBITDA improved substantially to Rs. 4.42 crore in Q3FY26, up from Rs. 0.91 crore in Q3FY25, translating into an impressive 385.7 percent YoY growth, while rising 129.1 percent QoQ from Rs. 1.93 crore in Q2FY26. This indicates better operating leverage and improved cost efficiency alongside higher revenues.

Profit after tax also witnessed exceptional growth, reaching Rs. 4.27 crore in Q3FY26 versus Rs. 0.18 crore in Q3FY25, marking a sharp ~2,272 percent YoY growth, and increasing 61.7 percent QoQ from Rs. 2.64 crore in Q2FY26. Overall, the quarter reflects strong financial momentum with significant improvements across revenue, operating performance, and profitability.

About The Company

Garment Mantra Lifestyle Limited is an India-based apparel company engaged in manufacturing, distribution and retail of fabrics and hosiery garments for men, women and kids, along with fashion accessories. Founded in 1997 and headquartered in Tirupur, the company also exports its products and operates in white-label segments, having rebranded from Junction Fabrics and Apparels Limited in April 2020.

A return on equity (ROE) of about 7.31 percent, a return on capital employed (ROCE) of about 7.38 percent and debt to equity ratio at 0.36 demonstrate the company’s financial position. At the moment, the company’s P/E ratio is 7.8x lower as compared to its industry P/E 27.2x.  

As of December 2025, the company’s shareholding pattern is largely driven by public shareholders, who hold 69.62 percent of the equity, while promoters own 30.18 percent, indicating a stable promoter commitment. Foreign institutional investors have a minimal presence with a 0.20 percent stake, reflecting low institutional participation and a predominantly retail-owned structure.

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