Kewal Kir.Cloth.

Kewal Kiran Clothing Limited reported a robust financial performance, with Q4 FY26 consolidated revenue reaching INR 325 crores, marking a 12.4% year-on-year increase. For the full fiscal year 2026, the company achieved INR 1,212 crores in revenue, demonstrating a strong 20.9% year-on-year growth. This performance was supported by a 16% year-on-year apparel volume growth, driven by strong design capabilities and sustained consumer demand. Profitability also saw significant improvement, with FY26 EBITDA at INR 238 crores, a 25% increase year-on-year, and EBITDA margins expanding to 19.6% for the full year, surpassing the guided range of 17-18%.

The company highlighted strong performance across its brand portfolio. Killer continued its sustained growth with double-digit sales growth in FY26 and expanded to 457 EBOs, achieving 9.4% SSG for the year. Kraus delivered robust sales performance with over 20% growth in FY26 and is evolving as a significant player in women's casual wear, expanding its EBO network to 28. Junior Killer posted high sales growth, validating the company's entry into kidswear. Lawman, with its strategic repositioning towards a D2C model, showed positive traction and consumer acceptance, resulting in robust sales growth and 90 EBOs. Integriti also recorded notable growth in both Q4 and FY26 due to renewed focus and targeted brand-building efforts.

Building on its strong FY26 performance, Kewal Kiran Clothing has accelerated its growth target, aiming for a 20% CAGR over the next three years, up from the previous 15% CAGR. This accelerated growth is expected to be driven by 15-18% organic growth, with the remaining 5% to be covered by inorganic acquisitions. The company is actively open to M&A opportunities across various segments, including competing categories, premium, value, and even gender-specific brands, to achieve its Vision 2028 target of INR 1500 crores.

The company's go-to-market strategy proved effective, with healthy double-digit growth reported across all sales channels, including EBOs, large format stores, MBOs, and online. Retail sales grew 16% year-on-year in Q4 FY26 and 24% for the full year, while non-retail grew 8% in Q4 and 17% for FY26. In line with its brand footprint expansion strategy, the company added a net of 57 EBOs in FY26, bringing the total store count to 666 as of March 31, 2026. The target for net EBO additions for the next full year is 50 to 70 stores.

While the company maintains a strong financial position, discussions touched upon working capital. Receivables have increased from INR 170 crores to INR 320 crores over the last two years, though management expects working capital days to remain within the 130-140 day limit. The company also acknowledged potential headwinds from geopolitical events, noting that exports have been disturbed and may degrow next year. Furthermore, raw material price increases due to the ongoing war could potentially impact profit by 1-2% if not fully passed on to consumers, though the company prioritizes maintaining revenue and market share.

The company's annual CAPEX requirement is estimated to be around INR 30-35 crores, covering both frontend and backend infrastructure. Regarding shareholder returns, management clarified that while the promoter holds a significant stake, there are no immediate plans for a share buyback. The company's focus remains on organic growth and strategic inorganic acquisitions to drive value creation.