Faze Three Reports 33% YoY Revenue Growth, Highlighting Strong Capacity and China+1 Tailwind
Faze Three Limited announced its financial results for the quarter and financial year ended March 31, 2026. The company reported a 33% Year-on-Year (YoY) Total Income of 932.8 INR Crs for FY26. Operationally, the company highlighted its strong capacity, robust client relationships, and significant structural tailwinds benefiting its position in the Technical and Home Textiles sector.Financial Highlights for FY26
For the fiscal year 2026, the company's financial trajectory showed significant growth, supported by an operating leverage advantage.The consolidated P&L summary for the annual period is detailed below:
| Particulars | FY26 (INR Crs) | FY25 (INR Crs) | FY24 (INR Crs) | FY23 (INR Crs) |
|---|---|---|---|---|
| Total Income | 932.8 | 701.7 | 572.3 | 563.8 |
| Total Income Growth % | 32.9% | 22.6% | 11.9% | 10.2% |
| EBITDA | 92.27 | 92.23 | 94.27 | 99.93 |
| EBITDA Margin % | 9.89% | 13.14% | 16.47% | 17.73% |
| PAT | 33.6 | 40.7 | 46.6 | 58.3 |
| PAT Margin % | 3.60% | 5.79% | 8.15% | 10.34% |
Quarterly results show records being set, with Q4 FY26 recording the highest-ever quarterly figures for both Revenue and EBITDA.
| Particulars | Q4 FY26 (INR Crs) | Q3 FY26 (INR Crs) | Q4 FY25 (INR Crs) |
|---|---|---|---|
| Total Income | 280.4 | 229.3 | 218.2 |
| EBITDA | 37.16 | 20.99 | 32.23 |
| EBITDA Margin % | 13.25% | 9.15% | 14.77% |
The company noted that the EBITDA margin rebounded in Q4 FY26, attributed to the unwinding of trade tariff impacts since mid-February 2026, alongside improved sentiment from US and EU/USA trade deals.
Operational Strengths and Market Position
Faze Three is engaged in the manufacturing of Technical and Home Textiles products, with over 90% of its export revenue generated through direct exports to large retailers in the USA, UK, and EUR markets. The company maintains an operational footprint across eight factory locations: Silvassa (2), Vapi (1), Panipat (4), and Aurangabad (1).The business model is centered on order-backed manufacturing only, possessing a vertically integrated capability from yarn to finished product across both Cotton and MMF materials. The replacement cost for the company's factories exceeds 800+ INR Crs, establishing a significant barrier to entry for new competitors.
The company benefits from a deep customer relationship structure, citing strong 20+ year relationships with Top 15 customers. Notably, the top 12 customers contribute approximately 80% of the total revenue, and no single customer accounts for more than 15% of the revenue.
Global Market Tailwinds
The company identified several key global structural tailwinds supporting future growth:- China +1 Acceleration: The movement of the CNYINR rate, up 21% over 13 months, combined with tariff differentials, is driving top global retailers to actively diversify 15-20% of their sourcing out of China within the next two to three years, positioning India as a primary beneficiary.
- Trade Agreements: Faze Three benefits from the US-India bilateral deal, keeping tariffs at a maximum of 18% (currently 10% post SC judgment), alongside existing FTAs with the EU and UK. Tariff refunds are expected to boost retail demand in the second half of CY27.
- MMF Potential: While India leads in cotton home textiles, the MMF segment remains dominated by China. The estimated export potential for India's MMF is suggested to be 20 times the current levels, with the PLI for MMF expected to build the optimum supply chain.
Growth Outlook and Capital Allocation
The company reported that its total installed revenue capacity across all units is 1,650+ INR Crs, with current average utilization at around 55%. The major capex cycle is expected to conclude in FY27.Historically, the company has invested 360+ INR Crs from internal accruals since FY20, building its current revenue capacity. The conclusion of the major capex cycle in FY27 is projected to free up 40% to 50% of the Cash Flow from Operations (CFO) for alternative uses, such as debt reduction or dividend distribution.
ESG commitments include investments exceeding 25 INR Crs in Rooftop Solar (3.5 MW captive), PNG clean energy, and Li-ion Electric MHE. The company also noted strong domestic supplier partnerships with upfront payment terms, which secure quality and timely supplies.
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P&L Summary - Annual (Consolidated)
| Particulars | FY26 | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 |
|---|---|---|---|---|---|---|---|
| Total Income | 932.8 | 701.7 | 572.3 | 563.8 | 511.4 | 326.7 | 306.3 |
| Growth % | 32.9% | 22.6% | 11.9% | 10.2% | 56.5% | 6.7% | 13.3% |
| EBITDA | 92.27 | 92.23 | 94.27 | 99.93 | 86.6 | 47.9 | 37.8 |
| EBITDA Margin % | 9.89% | 13.14% | 16.47% | 17.73% | 16.93% | 14.67% | 12.32% |
| PAT | 33.6 | 40.7 | 46.6 | 58.3 | 51.1 | 25.0 | 18.1 |
| PAT Margin % | 3.60% | 5.79% | 8.15% | 10.34% | 9.99% | 7.7% | 5.9% |
Balance Sheet Summary (Consolidated)
| Particulars | Mar 31, 2026 (INR Crs) | Mar 31, 2025 (INR Crs) | Mar 31, 2024 (INR Crs) |
|---|---|---|---|
| Networth | 452.3 | 420 | 380.6 |
| ST Borrowings (Net) | 175.3 | 160.7 | 74 |
| Total Liabilities | 782.7 | 660.3 | 502.6 |
| Net Fixed Assets | 366.8 | 299.3 | 240.5 |
| Total Assets | 782.7 | 660.3 | 502.6 |
| Core Capital Employed | 623.6 | 538.9 | 407.2 |
Key Ratios Summary (Consolidated)
| Return Ratios | FY26 | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 |
|---|---|---|---|---|---|---|---|
| ROE | 8% | 11% | 14% | 21% | 23% | 15% | 10% |
| Core ROCE | 11% | 14% | 20% | 27% | 29% | 19% | 13% |
| Net Debt / EBIDTA | 2.33 | 1.74 | 0.78 | 0.44 | 0.89 | 1.02 | 1.25 |
Note: The company maintains a CARE rating of A(Stable)/A1 as of September 2025.
FAZE3Q Stock Price Movement
Shares of Faze Three Limited are edging higher to ₹506.65 as of 9:57 AM today, having gained ₹24.10 or 4.99% in live trading. The stock currently trades on brisk buying interest, evidenced by 10,525 shares having traded throughout the morning session.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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