Kitex Garments Limited has submitted to the Exchange, the financial results for the period ended December 31, 2025.
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Kitex Garments reported a sharp decline in Q3 FY26 performance. Standalone revenue from operations fell to Rs 16,434.75 lakhs from Rs 27,631.61 lakhs in Q3 FY25, a drop of around 41% year-on-year. Standalone net profit dropped to Rs 1,035.42 lakhs from Rs 4,140.99 lakhs. On a consolidated basis, the company swung to a net loss of Rs 1,700.20 lakhs in Q3 FY26 versus a profit of Rs 4,051.53 lakhs a year ago. For the nine months ended December 31, 2025, consolidated revenue fell to Rs 50,078.33 lakhs and consolidated net loss stood at Rs 391.71 lakhs compared to a profit of Rs 10,392.98 lakhs in the same period last year. The auditor issued a qualified conclusion, flagging uncertainty around the recoverability of a Rs 2,776.24 lakh investment in associate Kitex USA LLC, whose net worth is fully eroded. An exceptional gain of Rs 1,750 lakhs was recorded from a write-back of credit loss provisions after receiving overdue payments from Kitex USA.
Shareholders should note the steep year-on-year revenue and profit decline, the swing to a consolidated loss, and the continuing auditor qualification on the Kitex USA investment, which together raise concerns about near-term earnings quality. However, the recovery of overdue receivables from Kitex USA and a one-time exceptional write-back provide some offset. Stock sentiment is likely to remain cautious until revenue recovery and clarity on the Kitex USA investment emerge.