Kewal Kiran Clothing Limited quarterly profit rises to Rs 54 crore

Kewal Kiran Clothing Limited reported audited consolidated profit of Rs 54 crore for the quarter ended 30 September 2026, up from Rs 47 crore a year earlier, as revenue from operations increased to Rs 373 crore from Rs 354 crore. Profit before tax rose to Rs 72 crore from Rs 63 crore.

What drove Kewal Kiran Clothing's quarterly profit increase?

Kewal Kiran Clothing's September-quarter profit increased as revenue and pre-tax profit both rose from a year earlier. Revenue from operations grew by Rs 19 crore to Rs 373 crore in the quarter ended 30 September 2026, while other income was Rs 7 crore, unchanged from a year earlier and lower than Rs 13 crore in the preceding June quarter. Total income reached Rs 380 crore, compared with Rs 361 crore in the September 2025 quarter.

Total expenses increased to Rs 308 crore from Rs 298 crore a year earlier. Cost of materials consumed declined to Rs 191 crore from Rs 195 crore, while employee benefit expenses rose to Rs 48 crore from Rs 45 crore. Manufacturing and operating expenses increased to Rs 37 crore from Rs 34 crore, whereas selling and distribution expenses fell to Rs 18 crore from Rs 21 crore.

Profit before tax rose to Rs 72 crore from Rs 63 crore in the corresponding quarter and Rs 51 crore in the June 2026 quarter. After tax, consolidated profit for the period was Rs 54 crore, compared with Rs 47 crore a year earlier and Rs 41 crore in the preceding quarter. Profit attributable to owners was Rs 49 crore, against Rs 45 crore a year earlier, while non-controlling interest accounted for Rs 5 crore, compared with Rs 2 crore.

How did Kewal Kiran Clothing perform in the first half?

Kewal Kiran Clothing reported higher revenue and profit for the half year ended 30 September 2026. Revenue from operations increased to Rs 652 crore from Rs 588 crore in the prior-year half, while total income rose to Rs 672 crore from Rs 609 crore. The group said revenue is unevenly spread through the year, meaning a quarterly result is not representative of full-year revenue or profit.

First-half total expenses rose to Rs 549 crore from Rs 504 crore. Materials consumed, the largest disclosed expense, were Rs 306 crore compared with Rs 301 crore in the prior-year period. Employee benefit expenses increased to Rs 92 crore from Rs 84 crore, manufacturing and operating expenses rose to Rs 61 crore from Rs 59 crore, and finance costs declined to Rs 6 crore from Rs 8 crore.

Profit before tax increased to Rs 123 crore from Rs 104 crore, while profit for the period rose to Rs 94 crore from Rs 79 crore. Total comprehensive income was Rs 95 crore, compared with Rs 79 crore. Basic and diluted earnings per share, or EPS, were Rs 13.85 for the half year, up from Rs 12.36; September-quarter EPS was Rs 7.84, compared with Rs 7.29 a year earlier.

What changed in Kewal Kiran Clothing's balance sheet?

Kewal Kiran Clothing's consolidated assets rose to Rs 1,610 crore at 30 September 2026 from Rs 1,496 crore at 31 March 2026. Current assets increased to Rs 1,096 crore from Rs 943 crore, accounting for most of the Rs 114 crore increase in total assets. Non-current assets declined to Rs 514 crore from Rs 553 crore over the same period.

Trade receivables rose to Rs 406 crore from Rs 321 crore, while inventories increased to Rs 272 crore from Rs 258 crore. Cash and cash equivalents on the balance sheet increased to Rs 257 crore from Rs 176 crore. Current investments declined to Rs 106 crore from Rs 136 crore, while property, plant and equipment decreased to Rs 170 crore from Rs 175 crore and right-of-use assets fell to Rs 70 crore from Rs 81 crore.

Total equity increased to Rs 1,202 crore at 30 September from Rs 1,119 crore at the March year-end. Equity attributable to owners increased to Rs 1,012 crore from Rs 938 crore, and non-controlling interest rose to Rs 190 crore from Rs 181 crore. Current liabilities were Rs 337 crore, up from Rs 286 crore, including trade payables due to others of Rs 132 crore compared with Rs 91 crore; borrowings decreased to Rs 46 crore from Rs 48 crore.

How did cash flow and working capital move at Kewal Kiran Clothing?

Kewal Kiran Clothing generated Rs 66 crore of net operating cash flow in the half year ended 30 September 2026, compared with Rs 81 crore a year earlier. This was despite pre-tax profit increasing to Rs 123 crore from Rs 104 crore, because trade receivables and other assets absorbed Rs 92 crore of cash. The comparable outflow from receivables and other assets was Rs 27 crore in the prior-year half.

Inventory absorbed Rs 14 crore of operating cash, compared with a Rs 48 crore outflow a year earlier. Increases in trade payables, liabilities and provisions supplied Rs 57 crore of cash in the latest half year. Net income tax paid was Rs 21 crore, compared with Rs 17 crore in the prior-year half, after which operating cash flow was Rs 66 crore.

Investing activities generated Rs 37 crore, reversing an Rs 12 crore outflow in the previous year. Investment redemptions contributed Rs 54 crore in the latest half, compared with Rs 18 crore a year earlier, while purchases of property, plant, equipment and intangible assets were Rs 5 crore against Rs 11 crore. Financing cash outflow was Rs 25 crore in both periods, including Rs 10 crore of lease-liability payments and Rs 13 crore of dividend payments in the latest half. Net cash and cash equivalents increased by Rs 78 crore to Rs 206 crore, compared with a Rs 44 crore increase to Rs 68 crore a year earlier.

Conclusion

Kewal Kiran Clothing's audited consolidated September-quarter result showed revenue rising to Rs 373 crore and profit rising to Rs 54 crore, with first-half profit increasing to Rs 94 crore from Rs 79 crore. The balance sheet expanded by Rs 114 crore from March, while higher receivables of Rs 406 crore and inventories of Rs 272 crore coincided with operating cash flow declining year on year to Rs 66 crore.

The next disclosed event is the interim dividend of Rs 2 per equity share with a face value of Rs 10, for which the board set 6 November 2026 as the record date. Subsequent quarterly disclosures will show whether receivables, which increased by Rs 85 crore from 31 March 2026, convert into operating cash, against the group's disclosure that revenue is unevenly spread across the year.