Kewal Kiran Clothing Q2FY26 Profit Drops 31.5% YoY Despite Record Revenue Growth; Stock Falls 3.5%

Mumbai, October 16, 2025 – Kewal Kiran Clothing Limited (NSE: KKCL, BSE: 532732) reported a 31.5% year-on-year drop in consolidated net profit to ₹44.9 crore for Q2FY26, down from ₹65.5 crore a year ago. The decline was primarily driven by an 80.2% fall in other income to ₹6.8 crore.

As of 11:45 a.m. IST, the stock was at ₹536.55, down ₹24.75 or 4.41% from its previous close of ₹561.30. It opened at ₹545.15 and has been between a high of ₹548.90 and a low of ₹530 so far during the day. The company has a market cap of ₹3,459 Cr., and a PE ratio of 23.

Record Revenue Growth

Despite a decrease in profit, the company posted its highest quarterly revenue ever, with operations revenue growing to ₹354.1 crore, marking a 14.9% YoY increase from ₹308.2 crore in Q2FY25. The growth was due to strong sales volumes and an increased retail presence across the country.

Operational Performance

EBITDA increased by 11% year-on-year to ₹71 crore, sustaining a margin of 20%, which is just below last year’s 20.7%. The stable margins demonstrate the company’s operational leverage despite higher marketing and retail expansion costs.

Retail and Brand Expansion

KKCL sustained its retail momentum during the quarter by adding 29 new Exclusive Brand Outlets (EBOs), bringing the total to 652 EBOs. In addition, it has a presence in more than 3,000 Multi-Brand Outlets (MBOs) as well as leading retail chains.

As the official apparel partner for the Asia Cup 2025 Cricket Series, KKCL strengthened its brand visibility and consumer engagement across India and South Asia.

Management Commentary

Hemant Jain, Joint Managing Director, said, “We are pleased to report our best-ever quarterly performance, underscoring the strength of our business fundamentals and the growing resonance of our brands. The quarter reflects a combination of strategic execution, favorable macro tailwinds, and disciplined operational management. Our growth remains broad-based across retail and non-retail channels.”

He added that KKCL remains focused on expanding its EBO network and driving innovation-led brand growth as it enters the second half of FY26.

Outlook

Kewal Kiran Clothing anticipates further revenue growth over the next few quarters, fueled by its growing retail footprint and brand collaborations. However, the company may find it difficult to maintain its profitability in the face of rising operating costs and lower levels of non-operating income.

REF:https://nsearchives.nseindia.com/corporate/KKCL_15102025165712_Resultrelease3092025.pdf

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