Kewal Kiran Clothing Q2 FY27 results: net profit up 14.2% to ₹54 crore, revenue up 5.3%

How did Kewal Kiran Clothing perform in Q2 FY27?

On a consolidated basis, Kewal Kiran Clothing reported Q2 FY27 revenue of ₹373 crore for July–September 2026, up ₹18.91 crore or 5.3% from ₹354.09 crore in Q2 FY26. Against Q1 FY27, revenue rose ₹94 crore or 33.7% from ₹279 crore. Total income was ₹380 crore, up ₹19.12 crore or 5.3% year on year and ₹88 crore or 30.1% from the previous quarter.

EBITDA was ₹80 crore, compared with ₹70.99 crore a year earlier and ₹54 crore in Q1 FY27. The EBITDA margin was 21.4%, up 1.4 percentage points from 20.0% year on year and 2.0 percentage points from 19.4% in the previous quarter. Profit before tax was ₹72 crore, against ₹62.89 crore in Q2 FY26 and ₹51 crore in Q1 FY27.

Net profit was ₹54 crore, compared with ₹47.29 crore a year earlier and ₹41 crore in Q1 FY27. Profit attributable to owners was ₹49 crore, against ₹44.89 crore in Q2 FY26 and ₹38 crore in Q1 FY27. EPS was ₹7.84, up from ₹7.29 and ₹6.01, respectively. Standalone revenue was ₹290 crore and standalone net profit was ₹43 crore.

What changed in Kewal Kiran Clothing's costs and profit?

Total expenses were ₹308 crore, up ₹10.01 crore or 3.4% from ₹297.99 crore in Q2 FY26. Cost of materials fell ₹3.72 crore or 1.9% to ₹191 crore, while employee cost rose ₹3.10 crore or 6.9% to ₹48 crore. Finance costs declined ₹0.95 crore or 24.1% to ₹3 crore, depreciation rose ₹1.06 crore or 9.7% to ₹12 crore, and other expenses increased ₹1.96 crore or 2.9% to ₹69 crore.

Other income was ₹7 crore, up ₹0.21 crore or 3.1% from ₹6.79 crore, and there was no exceptional item in either quarter. Tax expense rose ₹2.49 crore or 16.1% to ₹18 crore from ₹15.51 crore. Against Q1 FY27, total expenses were ₹67 crore higher, other income was ₹6 crore lower and tax was ₹8 crore higher. The filing did not state a specific reason for these movements.

How did the first half of FY27 go?

For H1 FY27, consolidated revenue was ₹652 crore, up ₹64.16 crore or 10.9% from ₹587.84 crore in H1 FY26. Total income rose ₹63.49 crore or 10.4% to ₹672 crore from ₹608.51 crore, while profit before tax increased ₹18.86 crore or 18.1% to ₹123 crore from ₹104.14 crore.

Net profit for the first half was ₹94 crore, up ₹14.7 crore or 18.5% from ₹79.3 crore, and EPS rose ₹1.49 or 12.1% to ₹13.85 from ₹12.36. The company’s results release separately reported H1 FY27 EBITDA of ₹133 crore, compared with ₹113 crore in H1 FY26, and gross profit of ₹280 crore, compared with ₹248 crore.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹1,610 crore, compared with ₹1,496.52 crore at 31 March 2026. Total equity was ₹1,202 crore, compared with ₹1,119.48 crore, while borrowings fell to ₹46 crore from ₹47.88 crore. Cash and cash equivalents rose to ₹257 crore from ₹175.77 crore; inventories were ₹272 crore, trade receivables ₹406 crore and trade payables ₹142 crore.

H1 FY27 operating cash flow was ₹66 crore, compared with ₹59.69 crore in H1 FY26. Investing cash flow was ₹37 crore against ₹8.02 crore, while financing cash outflow was ₹25 crore compared with ₹24.74 crore. Capital expenditure was ₹5 crore, compared with ₹10.98 crore in the earlier first half.

How has Kewal Kiran Clothing done over the last 8 quarters?

Revenue increased year on year in each of the last eight quarters. It reached ₹354.09 crore in Q2 FY26, fell to ₹301.12 crore in Q3 FY26 and ₹323.8 crore in Q4 FY26, then moved to ₹279 crore in Q1 FY27 before rising to ₹373 crore in Q2 FY27, the highest level in the series shown.

Net profit bottomed at ₹26.09 crore in Q3 FY25 and reached ₹54 crore in Q2 FY27, the highest level in the series. EBITDA margin was lowest at 17.8% in Q1 FY26, reached 20.9% in Q3 FY26, and rose to 21.4% in Q2 FY27. Profit rose year on year in each of the last four quarters.

What else did the company announce?

The board approved the audited standalone and consolidated results for the quarter and six months ended 30 September 2026 at its meeting on 2 November 2026. It also declared the first interim dividend for FY 2026-27 at 20%, or ₹2 per share on 6,16,25,185 equity shares of ₹10 each, with payment on or after 20 November 2026.

The record date for the interim dividend was fixed at 6 November 2026. The company also filed an investor presentation for Q2 and H1 FY27, which included an FY28 revenue target of ₹1,500 crore. The same-day filings did not include a fund raise or any appointment.

What did Kewal Kiran Clothing's management say?

Management retained a double-digit FY27 revenue growth objective but said the earlier 15% target was no longer assured. It kept the Vision 2028 revenue and profitability objectives unchanged, while revising FY28 store targets to 800 EBOs, 125 Lawman stores and 75 Cross stores. Management expects nine-month EBO same-store sales to be roughly flat after negative 10% in the first half.

Management said floods at Vapi and Daman disrupted production for 7–8 days and cost an estimated 3–4% of Q2 business. It also said the shift of Navratri and the festive season into Q3 distorted Q2 retail sales and store productivity, while inflation and geopolitical tensions weakened consumer sentiment and pressured first-half gross margins.

Management said Cross grew over 25%, Middle East exports began, and online and multi-brand outlet channels were scaling. It expects winter timing to move the Q3 EBITDA mix by 1–2%, while category and brand pivots may need at least two more quarters. Hemant Jain said, “Demand was not the problem, but the production was the problem because of the floods.”

How did Kewal Kiran Clothing shares react?

After the filing, KKCL rose 0.1% in five minutes, 0.8% in 15 minutes and 0.4% in 30 minutes. It closed the reaction day 3.5% above its pre-results close of ₹417.50, and by the next day’s close it was up 4.2% from that same close. No five-day or one-month reaction was available.

The Garments & Apparels industry median rose 0.5% on the reaction day and 1.6% by the next day’s close. KKCL therefore moved 3.0 percentage points more than the industry on the reaction day and 2.6 percentage points more by the next day’s close. Earlier reaction-day moves were mixed: 6.5% on 10 February 2026, 4.6% on 25 October 2024, and declines on the other six listed dates.

How did other Garments & Apparels companies do?

Ten other Garments & Apparels companies that had filed for the quarter were compared with Kewal Kiran Clothing. Their median revenue growth was 31.7%, compared with Kewal Kiran Clothing’s Q2 FY27 revenue growth of 5.3%. Of the peers for which the relevant comparison was available, seven grew faster than Kewal Kiran Clothing and three grew more slowly.

Six of the eight peers whose profit was compared reported higher profit. The peer comparison was as of 4 November 2026 and covered companies in the Garments & Apparels industry that had filed for the quarter.