KKCL Reports 18% Revenue Growth in Q3 FY26, EBITDA Margin at 20.9%
Kewal Kiran Clothing Limited (KKCL) announced its audited financial results for the quarter ended December 31, 2025, reporting year-on-year growth in revenue and operating margins. The company recorded higher revenue and EBITDA for both Q3 FY26 and the nine-month period ended December 31, 2025.
Key Financial Highlights are as follows:
Particulars (₹ Cr) | Q3’FY26 | Q3’FY25 | Y-O-Y | Q2’FY26 | 9M’FY26 | 9M’FY25 | Y-O-Y |
|---|---|---|---|---|---|---|---|
Revenue from Operations | 301.1 | 255.2 | 18.0% | 354.1 | 889.0 | 714.6 | 24.4% |
Gross Profit (GP) | 131.1 | 105.6 | 24.1% | 149.2 | 378.8 | 303.1 | 25.0% |
GP Margin (%) | 43.5% | 41.4% | 42.1% | 42.6% | 42.4% | ||
EBIDTA | 63.0 | 46.9 | 34.2% | 71.0 | 175.5 | 138.5 | 26.8% |
EBIDTA Margin (%) | 20.9% | 18.4% | 20.0% | 19.7% | 19.4% | ||
PAT | 37.9 | 26.1 | 45.3% | 47.3 | 117.2 | 119.0 | (1.5%) |
PAT Margin (%) | 12.5% | 10.2% | 13.1% | 12.8% | 15.6% |
Financial Highlights :
Consolidated Financial Highlights for Q3’FY26
- Revenue from Operations for Q3’FY26 grew by 18.0% to ₹301.1 cr as compared to ₹255.2 cr in Q3’FY25
- Gross Profit grew by 24.1% to ₹131.1 cr in Q3’FY26 as compared to ₹105.6 cr in Q3’FY25. Gross margin for Q3’FY26 stood at 43.5%.
- EBIDTA for Q3’FY26 grew by an impressive 34.2% to ₹63.0 cr as compared to ₹46.9 cr in Q3’FY25. EBIDTA margin for Q3’FY26 stood at a robust 20.9%.
- PAT for Q3’FY26 notably grew by 45.3% to ₹37.9 cr as compared to ₹26.1 cr in Q3’FY25. PAT margin for Q3’FY26 stood at 12.5%.
Consolidated Financial Highlights for 9M’FY26
- Revenue from Operations for 9M’FY26 grew by 24.4% to ₹889.0 cr as compared to ₹714.6 cr in 9M’FY25
- Gross Profit grew by 25.0% to ₹378.8 cr in 9M’FY26 as compared to ₹303.1 cr in 9M’FY25. Gross margin for 9M’FY26 stood at 42.6%.
- EBIDTA for 9M’FY26 grew by an impressive 26.8% to ₹175.5 cr as compared to ₹138.5 cr in 9M’FY25. EBIDTA margin for 9M’FY26 stood at 19.7%.
- PAT for 9M’FY26 moderated by 1.5% to ₹117.2 cr as compared to ₹119.0 cr in 9M’FY25 primarily due to higher other income of ₹ 22.5 crores, on account of one-time gain on sale of shares via IPO-OFS and Fair Value gain on shares of Baazar Style Retail Limited in 9M’FY25. PAT margin for 9M’FY26 stood at 12.8%.
Key Updates
- Retail Expansion: -The Company added a net of 14 Exclusive Brand Outlets (EBOs) during the quarter, taking the total to 666 EBOs, alongside its presence in 3,000+ Multi-Brand Outlets (MBOs) and major national retail chains.
- Dividend -In line with our strong performance and positive outlook, the Board of Directors declared interim dividend of ₹ 2/- per equity share of face value ₹ 10/- each during the quarter and nine months ended 31st December, 2025.
- Labour Code -----Effective November 21, 2025, the Government of India consolidated 29 existing labour regulations into four Labour codes -Ministry of Labour & Employment published draft Central Rules and FAQs to enable assessment of the financial impact due to changes -Incremental impact, assessed by the Company, on account of these changes, is not material and has been recognised in the consolidated financial results for the quarter and nine months ended December 31, 2025
Mr. Hemant Jain, JMD, KKCL
Commenting on the results, Mr. 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”