Robust sales growth and Ebitda margin expansion lift Kewal Kiran Clothing’s Q3 and nine-month performance
Kewal Kiran Clothing (KKCL), a leading Indian lifestyle apparel company, reported a robust set of financial results for the third quarter and nine months ended December 31, 2025, driven by strong revenue growth and sustained margin expansion.
Revenue from operations rose 18 per cent year-on-year to Rs 301.1 crore in Q3 FY26, compared with Rs 255.2 crore in the corresponding quarter last year. For the nine months ended FY26, revenue increased 24.4 per cent year-on-year to Rs 889.0 crore.
Gross profit in Q3 FY26 grew 24.1 per cent to Rs 131.1 crore, with gross margins improving to 43.5 per cent from 41.4 per cent a year earlier. Ebitda surged 34.2 per cent year-on-year to Rs 63.0 crore, significantly surpassing the company’s guidance, while Ebitda margins expanded to an impressive 20.9 per cent, up from 18.4 per cent in Q3 FY25.
Profit after tax for the quarter climbed 45.3 per cent to Rs 37.9 crore, compared with Rs 26.1 crore in the year-ago period, reflecting disciplined cost management and operational efficiencies.
For the nine-month period, gross profit increased 25.0 per cent to Rs 378.8 crore, with Ebitda rising 26.8 per cent year-on-year to Rs 175.5 crore. Ebitda margins for 9M FY26 stood at 19.7 per cent. However, PAT for the nine months moderated marginally by 1.5 per cent to Rs 117.2 crore, largely due to higher other income recorded in the previous year from one-time gains related to the IPO-OFS and fair value adjustments on investments.
During the quarter, KKCL continued to strengthen its retail footprint, adding a net 14 Exclusive Brand Outlets, taking the total count to 666 EBOs. The company also maintains a strong presence across more than 3,000 multi-brand outlets and major national retail chains.
Reflecting confidence in its performance and outlook, the board declared an interim dividend of Rs 2 per equity share of face value Rs 10 each for the quarter and nine months ended December 31, 2025.
Commenting on the results, Hemant Jain, Joint Managing Director of Kewal Kiran Clothing Limited, said the company delivered sustained double-digit growth driven by a mix of volume and value expansion, supported by a strong focus on operational efficiency. He added that investments in brand building and distribution expansion are yielding results and positioned the company to close the year at the higher end of its guided range.
The company noted that the financial impact of the recently consolidated labour codes is not material and has already been accounted for in the current results.
