KITEX posts Rs 17.12 cr loss despite operating profit
Interest and depreciation outweighed operating profit, while the Rs 3.77 cr tax charge widened the consolidated loss.
Filed 09 Sep 2026, 11:09 IST · Kitex Garments Ltd (KITEX)
Key takeaways
- Kitex Garments reported a consolidated net loss of Rs 17.12 cr in Q1FY27, with EPS at Rs -0.45.
- Interest of Rs 13.61 cr and depreciation of Rs 17.58 cr outweighed operating profit of Rs 10.19 cr, leaving profit before tax at a loss of Rs 13.35 cr.
- The stock fell 4.04% at t+0, while Kitex's 6.43% operating margin was 5.02 percentage points below the 11.45% median for 384 Consumer Discretionary peers.
Price around the results
Operating profit did not cover finance and depreciation
Kitex's consolidated operating profit of Rs 10.19 cr did not cover interest of Rs 13.61 cr and depreciation of Rs 17.58 cr, leaving profit before tax at a loss of Rs 13.35 cr. Other income of Rs 7.64 cr provided some offset, but the company still reported a net loss of Rs 17.12 cr after a tax charge of Rs 3.77 cr. The negative tax rate of -28.22% reflects tax expense being recorded despite a pre-tax loss.
Operating margin trails 384 Consumer Discretionary peers
Expenses of Rs 148.24 cr consumed most of revenue of Rs 158.43 cr, leaving an operating margin of 6.43%. That was 5.02 percentage points below the 11.45% median operating margin among 384 Consumer Discretionary companies that had reported the same quarter. The gap places the quarter's margin well below the sector comparison point.
The market decline extended beyond the initial reaction
The stock fell 4.04% at t+0 and 3.92% by t+1, with trading volume at 3.02 times its baseline. The decline extended to 5.27% by t+5 and 13.92% by t+30. The reported reaction therefore remained negative through the 30-session window.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹158 cr |
| Other income | ₹8 cr |
| Expenses | ₹148 cr |
| Operating profit | ₹10 cr |
| Operating margin (%) | 6.43% |
| Interest | ₹14 cr |
| Depreciation | ₹18 cr |
| Profit before tax | ₹-13 cr |
| Tax | ₹4 cr |
| Net profit | ₹-17 cr |
| EPS (₹) | ₹-0.45 |
Operating margin of 6.43% compares with a Consumer Discretionary sector median of 11.45% across 384 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -4.04% | -3.72% |
| Next session | -3.92% | — |
| 5 sessions | -5.27% | -4.67% |
| 15 sessions | -4.82% | — |
| 30 sessions | -13.92% | — |
Volume on the results session was 3.02× its 20-day average.
What to watch
- Whether operating margin moves back above 6.43%.
- Whether operating profit exceeds interest expense of Rs 13.61 cr.
- Whether the Rs 3.77 cr tax charge recurs alongside a pre-tax loss.