Kizi Apparels profit rises 30% as first-half revenue gains 68%

Kizi Apparels Limited reported unaudited net profit of Rs 73.62 lakh for the half year ended 30 September 2026, up from Rs 56.60 lakh a year earlier. Kizi Apparels lifted revenue from operations 68% to Rs 23.41 crore, but used Rs 5.51 crore in operating activities as inventory and receivables increased from 31 March 2026.

How did Kizi Apparels perform in the September half?

Kizi Apparels increased net profit by 30% to Rs 73.62 lakh in the half year ended 30 September 2026, from Rs 56.60 lakh in the corresponding half a year earlier. Profit before tax rose to Rs 1.10 crore from Rs 75.37 lakh, while current tax expense was Rs 38.78 lakh and the tax adjustment relating to earlier years was Rs 1.92 lakh.

Revenue from operations reached Rs 23.41 crore, compared with Rs 13.91 crore in the half year ended 30 September 2025. Total income was also Rs 23.41 crore because the latest period reported no other income. In the immediately preceding six months ended 31 March 2026, revenue was Rs 28.73 crore, other income was Rs 15 lakh and net profit was Rs 44 lakh.

The September 2026 results were unaudited and were subject to a limited review, while the financial year ended 31 March 2026 was audited. For that full year, Kizi Apparels reported revenue from operations of Rs 42.64 crore and net profit of Rs 1.01 crore. The filing does not provide a forecast for the remaining half of 2026-27.

What changed in Kizi Apparels’ costs and profit before tax?

Kizi Apparels’ profit before tax rose because its Rs 9.50 crore increase in revenue exceeded the Rs 9.15 crore increase in total expenses. Total expenses were Rs 22.31 crore in the half year ended 30 September 2026, compared with Rs 13.16 crore a year earlier, leaving profit before tax of Rs 1.10 crore.

Cost of materials consumed increased to Rs 22.80 crore from Rs 11.01 crore in the prior-year half. The statement also showed a negative Rs 4.06 crore change in inventories of finished goods, work in progress and stock-in-trade, against a negative Rs 38.53 lakh change a year earlier. Kizi Apparels reported one business segment, so it did not provide separate segment information under Accounting Standard 17.

Employee benefit expense was Rs 70.25 lakh, up from Rs 61.06 lakh, and other expenses rose to Rs 2.29 crore from Rs 1.43 crore. Finance costs increased to Rs 45.32 lakh from Rs 38.07 lakh, while depreciation and amortisation expense rose to Rs 12.15 lakh from Rs 11.01 lakh. The filing does not split revenue by product, customer or geography.

Why did Kizi Apparels use cash in operating activities?

Kizi Apparels used Rs 5.51 crore in operating activities in the half year ended 30 September 2026 despite reporting profit before tax of Rs 1.10 crore. Its cash-flow statement showed operating profit before working-capital changes of Rs 1.68 crore, compared with Rs 1.24 crore in the half year ended 30 September 2025, before the reported working-capital movements and tax payments.

Inventory was Rs 19.61 crore at 30 September 2026, up from Rs 15.96 crore at 31 March 2026. Trade receivables rose to Rs 11.13 crore from Rs 10.04 crore over the same period. These balance-sheet movements increased the amount tied up in current assets, although the filing does not identify inventory purchases, customer collections or individual counterparties behind the changes.

The latest half also recorded Rs 38.78 lakh of income tax paid and Rs 45.32 lakh of finance cost in the cash-flow statement. Cash and cash equivalents fell to Rs 19.44 lakh at 30 September 2026 from Rs 28.80 lakh at the beginning of the period, a decrease of Rs 9.36 lakh. The comparative balance was Rs 10.57 lakh at 30 September 2025, versus Rs 6.90 lakh at the start of that comparative period.

How was Kizi Apparels’ working capital funded?

Kizi Apparels had total assets of Rs 32.73 crore at 30 September 2026, compared with Rs 28.07 crore at 31 March 2026. Current assets totalled Rs 31.48 crore, including inventory of Rs 19.61 crore and trade receivables of Rs 11.13 crore. Current liabilities were Rs 13.51 crore, compared with Rs 13.07 crore at the preceding year-end.

Short-term borrowings rose to Rs 9.51 crore at 30 September 2026 from Rs 7.15 crore at 31 March 2026. Long-term borrowings declined to Rs 33.13 lakh from Rs 36.14 lakh, while trade payables to creditors other than micro and small enterprises increased to Rs 3.59 crore from Rs 2.13 crore. The balance-sheet changes show that larger current assets coincided with higher short-term borrowings and payables.

Shareholders’ funds increased to Rs 18.89 crore from Rs 14.58 crore over the six months. Share capital rose to Rs 10.12 crore from Rs 7.82 crore and reserves and surplus increased to Rs 8.77 crore from Rs 6.76 crore. A separate disclosure states that Kizi Apparels raised Rs 3.57 crore through a preferential issue on 24 March 2026.

Kizi Apparels reported Rs 2.86 crore of preferential-issue proceeds used for working-capital requirements and Rs 71.42 lakh for general corporate purposes as of 30 September 2026. The disclosure reported no deviation or variation in the use of proceeds, and no modification to the stated objects or allocations. It does not separately link the proceeds to individual cash-flow movements or balance-sheet accounts.

Conclusion

Kizi Apparels delivered higher revenue and net profit in the half year ended 30 September 2026, with revenue reaching Rs 23.41 crore and net profit reaching Rs 73.62 lakh. The higher sales were accompanied by increased material consumption, while inventory and receivables rose to Rs 19.61 crore and Rs 11.13 crore respectively, alongside Rs 5.51 crore of cash used in operating activities.

The next results will show whether Kizi Apparels converts its larger inventory and receivable balances into operating cash while managing short-term borrowings of Rs 9.51 crore. Separately, the company disclosed that warrants may be converted into an equal number of equity shares within 18 months of allotment, subject to the stated terms and conditions.