Kitex Garments Limited has submitted to the Exchange, the financial results for the period ended March 31, 2026.
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Kitex Garments reported a sharp decline in FY26 standalone revenue to ₹59,169 lakhs (down from ₹98,280 lakhs in FY25) and standalone net profit of ₹5,689 lakhs (down from ₹15,205 lakhs). The consolidated entity recorded a net loss of ₹1,321 lakhs for the full year versus a profit of ₹13,575 lakhs previously. The auditors issued a qualified opinion on the standalone results citing uncertainty over the recoverability of the ₹2,776 lakh investment in associate Kitex USA LLC, whose net worth is fully eroded. Management argues the investment's fair value exceeds carrying value based on projected future cash flows, but auditors note a lack of corroborative evidence. The company wrote back an ECL provision of ₹1,750 lakhs during the year and recommended a final dividend of ₹0.50 per share.
The qualified audit opinion on standalone results and the significant year-on-year profit decline are negative signals for investors. The ₹2,776 lakh investment in Kitex USA LLC represents a key risk if the associate's projected recovery does not materialise.