KKCL posts robust Q3 FY26 growth with margin expansion.
Kewal Kiran Clothing (KKCL), a leading lifestyle apparel brand in India, reported strong financial performance for the quarter ended December 31, 2025, driven by robust sales growth, improved margins, and continued retail expansion.
The company’s consolidated revenue from operations for Q3 FY26 rose 18 per cent to Rs 3.01 billion, compared with Rs 2.55 billion in the corresponding quarter last year. Gross profit increased 24.1 per cent to Rs 1.31 billion, with gross margins improving to 43.5 per cent. Operating performance remained strong, with EBITDA climbing 34.2 per cent to Rs 630 million, resulting in an EBITDA margin of 20.9 per cent. Profit after tax (PAT) surged 45.3 per cent year-on-year to Rs 370.9 million, while PAT margin stood at 12.5 per cent.
For the nine-month period of FY26, revenue from operations grew 24.4 per cent to Rs 8.89 billion, while gross profit rose 25 per cent to Rs 3.78 billion. EBITDA increased 26.8 per cent to Rs 1.75 billion, with margins at 19.7 per cent. However, PAT for the period declined marginally by 1.5 per cent to Rs 1.17 billion, primarily due to higher other income recorded in the previous year from one-time gains related to share sales and fair value adjustments.
During the quarter, the company expanded its retail footprint by adding a net 14 Exclusive Brand Outlets, taking the total to 666 outlets, alongside its presence across more than 3,000 multi-brand outlets and major national retail chains. The board also declared an interim dividend of Rs 2 per equity share.
The company noted that the Government of India’s labour code reforms, effective November 21, 2025, have had no material financial impact, with associated costs already accounted for in its results.
Commenting on the results, Hemant Jain, Joint Managing Director, Kewal Kiran Clothing, said, “We are pleased to report a robust performance in Q3, with sustained double-digit sales growth of 18.0 per cent, 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 per cent 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.”