The gross profit increased 24.1 per cent to ₹131.1 crore, with gross margin improving to 43.5 per cent from 41.4 per cent a year earlier. EBIDTA grew 34.2 per cent to ₹63 crore in the reporting quarter, up from ₹46.9 crore in the corresponding period last year. EBIDTA margin expanded to 20.9 per cent, reflecting improved operational efficiencies. Profit after tax (PAT) rose sharply by 45.3 per cent to ₹37.9 crore, with PAT margin at 12.5 per cent versus 10.2 per cent in Q3 FY25, KKCL said in a press release.
Kewal Kiran Clothing Limited has reported an 18 per cent YoY rise in Q3 FY26 revenue to ₹301.1 crore (~$33.26 million), with EBITDA up 34.2 per cent and PAT surging 45.3 per cent, supported by margin expansion.
For 9M FY26, revenue grew 24.4 per cent to ₹889 crore (~$98.2 million).
The company expanded its retail network, declared an interim dividend, and said Labour Code changes had no material impact.
Sequentially, revenue moderated from ₹354.1 crore in Q2 FY26, while margins remained resilient.
For the nine months (9M) period of FY26, KKCL reported revenue from operations of ₹889 crore (~$98.2 million), marking a 24.4 per cent increase over ₹714.6 crore in 9M FY25. Gross profit rose 25 per cent to ₹378.8 crore, with gross margin at 42.6 per cent.
EBIDTA for the 9M period stood at ₹175.5 crore, up 26.8 per cent YoY, with margin at 19.7 per cent. However, PAT moderated by 1.5 per cent to ₹117.2 crore compared to ₹119 crore in the previous year period. The decline was attributed to higher other income of ₹22.5 crore in 9M FY25 arising from a one-time gain on sale of shares via IPO-OFS and fair value gains on shares of Baazar Style Retail Limited. PAT margin for 9M FY26 stood at 12.8 per cent.
During the quarter, the company added a net 14 Exclusive Brand Outlets (EBOs), taking its total EBO count to 666. KKCL also maintains a presence in over 3,000 multi-brand outlets and major national retail chains, strengthening its omni-channel footprint.
Reflecting confidence in its performance and outlook, the Board declared an interim dividend of ₹2 per equity share of face value ₹10 each for the quarter and nine months ended December 31, 2025.
Following the Indian government’s consolidation of 29 labour laws into four Labour Codes effective November 21, 2025, the company assessed the financial implications of the draft Central Rules. KKCL stated that the incremental impact is not material and has already been recognised in its consolidated financial results.
Commenting on the results, Hemant Jain, joint managing director of the company said: “We are pleased to report a robust performance in Q3, with sustained double-digit sales growth of 18 per cent, driven by a combination of volume and value growth. Our focus on operational efficiency and meticulous execution of growth strategies has yielded impressive results, with EBITDA margin expansion driving a 34 per cent increase in EBITDA. Disciplined operational management remains at the core of our success, enabling us to scale our business while maintaining profitability.”
“We continue to invest in our brand and distribution network, expanding our Exclusive Brand Outlets (EBOs) and strengthening our presence in LFS stores. These initiatives are delivering results, enhancing brand visibility and driving sales growth. With our growth levers in place and delivering as planned, we are confident of closing the year at the higher end of our guided range, backed by an impressive margin profile,” added Jain. “The market sentiment is positive, buoyed by favourable macroeconomic tailwinds, and we are well-positioned to capitalize on emerging opportunities. Our proven strategy, combined with our agile and scalable business model, gives us the confidence to drive sustained growth and value creation for our stakeholders.”
Fibre2Fashion News Desk (SG)
