Executive Summary / Key Takeaways

• Integrated Design-to-Market Model: BrilliA Inc. has strategically evolved from an Original Design Manufacturer (ODM) into a comprehensive cross-border solution provider for ladies' intimate apparel, leveraging its subsidiaries Bra Pro and MAP to offer end-to-end services from design and sourcing to production and logistics.
• Proprietary Design Technology as a Moat: The company's in-house silicone dress forms represent a significant technological differentiator, enabling more precise measurements and rapid prototyping, which enhances product fit and quality, thereby strengthening customer relationships and competitive advantage.
• DIANA Brand Driving Margin Expansion: BrilliA's strategic diversification into its direct-to-consumer DIANA brand, targeting premium and younger demographics in Asia and Europe, is poised to capture higher margins and reinforce design capabilities, despite potential conflicts with existing ODM customers.
• Robust Revenue Growth Amidst Shifting Dynamics: The company achieved a 15.06% revenue increase to $64.39 million in FY2025, driven by new customer acquisitions and expanded product lines, though geographic shifts saw strong North American growth offset by declines in Europe.
• Operational Efficiency and Liquidity: Despite increased operating expenses related to its recent IPO, BrilliA maintains a healthy liquidity position with $16.66 million in net current assets and $7.70 million in cash as of March 31, 2025, supported by its asset-light manufacturing approach.

The Fabric of Growth: BrilliA's Strategic Evolution in Intimate Apparel

BrilliA Inc. ($BRIA) stands as a compelling narrative in the global intimate apparel industry, having meticulously woven its way from a traditional Original Design Manufacturer (ODM) to a sophisticated cross-border solution provider. The company, through its core subsidiaries Bra Pro Limited and PT Mirae Asia Pasifik (MAP), offers a comprehensive suite of services encompassing everything from raw material sourcing and innovative design to efficient production management and global logistics for ladies' intimate products. This integrated approach, honed over years, positions BrilliA as a critical partner for leading international brands such as Fruit of the Loom, Hanes Brands , and Jockey International.

The industry landscape for lingerie and apparel is characterized by intense competition and fragmentation, with a growing emphasis on price efficiency. However, BrilliA has deliberately chosen a path less traveled by not engaging in direct cost competition with lower-labor-cost regions like Bangladesh. Instead, the company focuses on delivering higher value through intricate, skill-intensive product offerings, thereby elevating its overall value proposition to customers. This strategy is particularly pertinent in Southeast Asia, a region with a population of 690 million, which BrilliA identifies as a significant economic driver and a market noticeably lacking strong regional lingerie brands.

Engineering Intimacy: BrilliA's Technological Edge

At the heart of BrilliA's competitive differentiation lies its robust design and sourcing capability, underpinned by a commitment to technological innovation in product development. MAP's in-house design team, with deep fashion sector expertise, consistently pushes boundaries to enhance comfort and fit. A key technological differentiator is MAP's development of proprietary in-house silicone dress forms. These forms offer a more lifelike and pragmatic simulation compared to traditional rigid prototypes, facilitating more precise measurements for the bras and other intimate apparel designed and manufactured.

This precision in design and prototyping translates into tangible benefits: it allows BrilliA to swiftly transform complex customer concepts into reality, even for top-tier brands, and to propose appropriate materials and sewing methods that meet specific gross margin requirements. While specific quantifiable metrics like "X% faster prototyping" or "Y% reduction in fit iterations" are not publicly detailed, the company's emphasis on "more precise measurements" inherently implies reduced development cycles, fewer material waste, and ultimately, higher customer satisfaction and repeat business. This technological advantage forms a crucial part of BrilliA's competitive moat, enabling it to distinguish itself from other ODM/OEM players who may lack such advanced in-house capabilities. The company's ongoing investment in recruiting additional design staff and developing internal and external training programs further underscores its commitment to maintaining this technological edge, ensuring it remains at the forefront of market trends and customer demands.

Strategic Diversification: The Rise of DIANA

BrilliA's strategic narrative is further enriched by its ambitious diversification into the direct-to-consumer market with its licensed DIANA brand. Launched in the fourth quarter of 2024, the DIANA line targets the premium market and younger, digitally engaged consumers, initially in Indonesia with plans to expand into other ASEAN countries and Europe. This move is designed to capture higher margins by directly engaging with customers and gaining greater control over product development and design.

The DIANA brand is being repositioned from apparel for women over 40 to a high-quality, value-driven brand offering lingerie, sleepwear, baby wear, activewear, and period panties across all age groups. Distribution is primarily online through its e-commerce website, social media platforms like Instagram and TikTok, and regional marketplaces such as Shopee. A private launch event in Jakarta in Q2 2025 further solidified its market entry. This omni-digital approach, leveraging existing supply chain strengths, aims to minimize typical brand development costs.

Financial Performance: A Story of Growth and Investment

BrilliA's financial performance reflects a company in a period of strategic expansion and investment. For the fiscal year ended March 31, 2025, total revenue increased by a robust 15.06% to $64.39 million, up from $55.96 million in the prior year. This growth was primarily fueled by a significant increase in sales of brassieres, tops, and swimsuits, driven by the successful onboarding of new customers and expanded order volumes from existing clients introducing new brands. This positive trend was partially offset by a decline in bodysuit sales due to reduced consumer demand and a decrease in order management solutions revenue as the company transitioned to direct sales with a customer.

Geographically, North America remains the dominant market, accounting for 86.07% of total revenue in FY2025, experiencing a 24.10% increase in sales. This growth is attributed to stable economic conditions and strong demand in the region. Conversely, sales to Europe declined by 35.54% in FY2025, impacted by economic uncertainty stemming from the ongoing conflict in Ukraine. The company's gross profit margin improved from 14.78% in FY2024 to 15.78% in FY2025, reaching $10.43 million, primarily due to enhanced cost control measures in material sourcing and subcontractor management.

However, net income for FY2025 decreased by 14.16% to $2.82 million, down from $3.28 million in FY2024. This decline was largely a result of a substantial 46.55% increase in operating expenses, driven by higher depreciation charges, employee-related costs, and professional fees associated with the company's public listing activities and new office leases. When adjusted for these non-recurring listing-related expenses and director fees, the adjusted net profit attributable to shareholders for FY2025 stood at $3.573 million, providing a clearer picture of underlying operational profitability.

From a liquidity perspective, BrilliA maintains a healthy position. As of March 31, 2025, the company reported net current assets of $16.66 million and a positive cash and cash equivalents balance of $7.70 million.

While net cash used in operating activities was $4.52 million in FY2025, this was influenced by increased deferred listing costs and changes in working capital. The company's Initial Public Offering (IPO) on November 29, 2024, provided a significant capital injection, with $7.19 million in net proceeds from the issuance of shares, contributing to a net cash provided by financing activities of $6.71 million. The recent declaration of a cash dividend of $0.133 per Class A share, payable on September 30, 2025, signals a potential shift in capital allocation, despite the stated intent to reinvest earnings for growth.

Competitive Landscape and Strategic Positioning

BrilliA operates within a highly competitive and fragmented global lingerie and apparel market. Its primary direct competitors include established players like Victoria's Secret (VSCO), Hanesbrands (HBI), and PVH Corp (PVH), each with distinct market positions. Victoria's Secret, a global retail giant, boasts strong brand recognition and extensive distribution, but faces challenges in adapting to evolving consumer preferences for inclusivity and sustainability. Hanesbrands excels in mass-market, affordable intimate apparel, leveraging efficient supply chains and cost leadership, though it lacks a strong premium fashion focus. PVH Corp, through brands like Calvin Klein, focuses on modern, lifestyle-oriented products with strong branding and global marketing, but can be slower to adapt to fast-fashion trends.

BrilliA differentiates itself through its "asset-light approach," abstaining from owning manufacturing facilities, which provides flexibility and cost advantages, particularly during economic downturns. This contrasts with the capital-intensive models of some larger competitors. The company's commitment to quality and specialization in intricate, skill-intensive product offerings allows it to avoid direct price competition with lower-cost regions, positioning itself for discerning customers. While BrilliA, as a relatively newer public entity, may trail these established players in overall market share and revenue scale, its agility and design innovation provide a qualitative edge. Its proprietary silicone dress forms, for instance, offer a level of design precision that can lead to superior product fit and quality, potentially fostering stronger customer loyalty compared to mass-market offerings.

The launch of the DIANA brand introduces a new competitive dynamic. While it presents a potential conflict of interest with existing ODM customers, BrilliA mitigates this by targeting DIANA towards premium markets in Asia and Europe, distinct from its existing customers who primarily serve North American fast fashion brands. A dedicated team for DIANA's business development further addresses this concern. This strategic segmentation allows BrilliA to pursue higher-margin opportunities while maintaining its core ODM business. Indirect competitors, such as fast-fashion retailers and large e-commerce platforms, also pose a threat by offering accessible or diverse alternatives, potentially impacting BrilliA's market share in price-sensitive segments. However, BrilliA's focus on specialized design and quality, coupled with its digital-first strategy for DIANA, positions it to capture specific market niches.

Conclusion

BrilliA Inc. presents a compelling investment thesis rooted in its evolution as an integrated intimate apparel solution provider and its strategic expansion into the direct-to-consumer market with the DIANA brand. The company's foundational strengths in design innovation, particularly its proprietary silicone dress forms, provide a distinct competitive advantage in product quality and development efficiency. This technological edge, coupled with an asset-light operational model, positions BrilliA to capitalize on growth opportunities in the fragmented global lingerie market, particularly in underserved regional segments in Asia and Europe.

While the company faces inherent risks such as customer concentration and potential conflicts of interest with its new brand, its proactive mitigation strategies and focus on higher-value offerings demonstrate a clear path forward. The recent financial performance, marked by strong revenue growth and improving gross margins, underscores the effectiveness of its strategic initiatives, even as increased investment in public listing activities temporarily impacted net income. For investors, BrilliA represents an opportunity to participate in a company that is leveraging its core competencies and innovative spirit to carve out a significant presence in the dynamic world of intimate apparel, with its strategic diversification and technological leadership poised to drive long-term value creation.