Kitex swings to profit as operating margin jumps 15.73 points
Revenue rose 28.16% QoQ while expenses grew 6.62%, though other income made up 44.15% of pre-tax profit.
Filed 02 Nov 2026, 18:06 IST · after market close · Kitex Garments Ltd (KITEX)
Key takeaways
- Consolidated operating margin expanded 15.73 percentage points QoQ to 22.16% as revenue grew 28.16% while expenses rose 6.62%.
- Net profit recovered to Rs 13.71 cr from a Rs 17.12 cr loss in Q1FY27, but other income supplied 44.15% of pre-tax profit.
- Kitex's 22.16% operating margin was 9.42 percentage points above the 12.74% median for 153 Consumer Discretionary peers.
Price around the results
Q2FY27 brought a sharp operating rebound
Kitex Garments' consolidated operating performance improved sharply from Q1FY27, when operating margin was 6.43% and operating profit was Rs 10.19 cr. Revenue grew 28.16% QoQ, well ahead of the 6.62% increase in expenses, lifting operating margin by 15.73 percentage points to 22.16%. The result was a sequential move from a net loss of Rs 17.12 cr to net profit of Rs 13.71 cr.
Other income remained important to reported profit
Other income accounted for 44.15% of pre-tax profit, so the Rs 22.15 cr pre-tax profit was not generated entirely by operating earnings. Interest expense rose 3.6% QoQ and depreciation increased 5.35%, adding pressure below operating profit. The tax rate was 38.13%, up 66.35 percentage points from Q1FY27's negative tax rate.
Margin was above the Consumer Discretionary peer median
Kitex's 22.16% operating margin was 9.42 percentage points above the 12.74% median among 153 Consumer Discretionary peers that had reported the quarter. The quarter-on-quarter comparison points to a sharp rebound from Q1FY27, rather than a conclusion about a longer multi-quarter trend.
Results were filed after the market close
The company filed its consolidated results after market close on 02 Nov 2026 at 18:06 IST. The stock's post-results move is therefore not assessed in this update.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹203 cr | ₹158 cr | +28.16% |
| Other income | ₹10 cr | ₹8 cr | +28.01% |
| Expenses | ₹158 cr | ₹148 cr | +6.62% |
| Operating profit | ₹45 cr | ₹10 cr | +341.51% |
| Operating margin (%) | 22.16% | 6.43% | — |
| Interest | ₹14 cr | ₹14 cr | +3.60% |
| Depreciation | ₹19 cr | ₹18 cr | +5.35% |
| Profit before tax | ₹22 cr | ₹-13 cr | — |
| Tax | ₹8 cr | ₹4 cr | +124.14% |
| Net profit | ₹14 cr | ₹-17 cr | — |
| EPS (₹) | ₹0.84 | ₹-0.45 | — |
Operating margin of 22.16% compares with a Consumer Discretionary sector median of 12.74% across 153 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 22.16% after the Q2FY27 rebound.
- Whether revenue growth remains ahead of expense growth after the 28.16% versus 6.62% QoQ split.
- Whether other income remains near 44.15% of pre-tax profit.