Kewal Kiran Clothing Limited (KKCL), one of India’s leading branded apparel players, reported robust growth in the third quarter of FY26, driven by strong sales momentum and margin expansion across its portfolio.
For Q3 FY26, revenue from operations grew 18 per cent year-on-year to Rs 301.1 crore, compared to Rs 255.2 crore in the corresponding quarter last year. On a sequential basis, revenue stood at Rs 354.1 crore in Q2 FY26.
Gross profit for the quarter increased 24.1 per cent to Rs 131.1 crore, with gross margins improving to 43.5 per cent from 41.4 per cent in Q3 FY25, reflecting improved product mix and operational efficiencies.
EBITDA rose 34.2 per cent year-on-year to Rs 63 crore in Q3 FY26, compared to Rs 46.9 crore a year ago. EBITDA margin expanded sharply to 20.9 per cent, surpassing the company’s earlier guidance and up from 18.4 per cent in the same period last year.
Profit after tax (PAT) grew 45.3 per cent to Rs 37.9 crore in Q3 FY26, compared to Rs 26.1 crore in Q3 FY25. PAT margin improved to 12.5 per cent from 10.2 per cent.
9M FY26 performance
For the nine months ended December 31, 2025, revenue from operations rose 24.4 per cent to Rs 889 crore, as against Rs 714.6 crore in 9M FY25.
Gross profit during the period increased 25 per cent to Rs 378.8 crore, with gross margin at 42.6 per cent.
EBITDA for 9M FY26 stood at Rs 175.5 crore, up 26.8 per cent year-on-year, while EBITDA margin improved to 19.7 per cent from 19.4 per cent in the year-ago period.
PAT for 9M FY26 stood at Rs 117.2 crore, marginally lower by 1.5 per cent compared to Rs 119 crore in 9M FY25. The moderation was primarily due to higher other income in the previous year, including a one-time gain of Rs 22.5 crore from sale of shares via IPO-OFS and fair value gain on shares of Baazar Style Retail Limited. PAT margin for the current period stood at 12.8 per cent.
Retail expansion and dividend
During the quarter, the company added a net 14 Exclusive Brand Outlets (EBOs), taking the total store count to 666 EBOs. KKCL also operates through over 80 distributors, reaching more than 3,000 multi-brand outlets (MBOs) and is present across leading national retail chains.
The Board of Directors declared an interim dividend of Rs 2 per equity share (face value Rs 10 each) for the quarter and nine months ended December 31, 2025.
On the regulatory front, the company said the incremental financial impact of the new Labour Codes, effective November 21, 2025, has been assessed as not material and has been recognised in the consolidated financial results.
Commenting on the performance, Hemant Jain, Joint Managing Director, said,
“We are pleased to report a robust performance in Q3, with sustained double-digit sales growth of 18.0%, 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% 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.
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”
KKCL operates an integrated model spanning design, manufacturing, branding and retailing, and owns brands including Killer, Integriti, Lawman, Easies, Junior Killer and Kraus.
