Kitex Garments Reports Quarterly Loss as Revenue Declines
The infantwear manufacturer saw sales fall nearly 20% year-on-year, with profitability turning sharply negative in the June quarter.
Kitex Garments reported a net loss of ₹17.12 crore in Q1 FY27, a significant reversal from a profit a year ago, as revenue declined 19.5% year-on-year.
Kitex Garments reported a challenging start to fiscal 2027, with revenue declining and profitability turning sharply negative. The company posted a net loss of ₹17.12 crore for the quarter ended June 2026, a stark reversal from a profit of ₹19.3 crore in the same period last year.
Revenue for the quarter fell 19.5% year-on-year to ₹158.43 crore. While the loss narrowed sequentially from the ₹9.29 crore loss in Q4 FY26, the net profit margin deteriorated to -10.8%, down a significant 20.6 percentage points from the 9.8% margin seen a year ago. This indicates that costs and expenses are outpacing the company's declining top line.
A look at the last five quarters reveals a persistent struggle for profitability.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Revenue (₹ Cr) | 158.43YoY -19% | 166.17 | 196.69 |
| Profit (₹ Cr) | -17.12YoY -189% | -9.29 | 19.30 |
| Net Profit Margin (%) | -10.8YoY -210% | -5.6 | 9.8 |
The trailing twelve-month (TTM) figures underscore the trend, showing a cumulative loss of ₹49.63 crore on TTM revenue of ₹628.68 crore, resulting in a TTM net profit margin of -7.9%.
Key Points
- The company's stock has declined 21.6% over the past year, reflecting the challenging operational environment.
- Despite recent losses, Kitex maintains a strong balance sheet with a healthy interest coverage ratio of 14.52.
- The stock trades at a price-to-earnings (P/E) ratio of 26.4, which is a 23.8% discount to the broader textile industry average.
The immediate focus for Kitex will be on reversing the revenue slide and restoring its net profit margin to positive territory.
Live Chart
· KITEX
(BSE)
ISIN: INE602G01020
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