KKCL Posts Record Q2 results

07 November 2025, Mumbai 

Kewal Kiran Clothing Limited (KKCL), the four-decade-old lifestyle powerhouse, has just delivered its best-ever quarterly performance, reporting Rs 354.1 crore revenues for Q2 FY26 and surpassing margin guidance with a 20 per cent EBIDTA margin. While the financial figures underscore operational discipline, the company’s recent success is rooted in a forward-looking strategy that moves beyond its traditional menswear dominance: a dynamic multi-brand architecture, aggressive asset-light retail expansion, and a steadfast focus on profitable growth.

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The winning strategy

KKCL’s strength lies in its fully integrated operations from designing and manufacturing to branding and retailing which ensures strong control over product quality and cost factors. Their current growth is being driven by a clear brand segregation and strategic diversification:

Table: The flagship & power brands

Source: Compiled from Kewal Kiran Clothing Limited (KKCL) Q2 FY26 Press Release, KKCL Annual Reports, Credit Rating Agency Reports, and Management Earnings Call Transcripts.

The diversification drive, targeting women and kids

To overcome revenue concentration challenges (historically relying heavily on Killer), KKCL has entered the fast-growing women's and kidswear segments:

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Kraus (women’s denim): In June 2024, KKCL acquired a 50 per cent stake in Kraus Casuals. This move provided an immediate and strong entry into the women's denim wear segment. In just nine months post-acquisition (9MFY25), Kraus recorded revenues of Rs 162 crore, indicating strong consumer traction and serving as a major growth engine for diversification.

Junior Killer (kidswear): Targeting the young boys' segment, this brand ensures KKCL connects with consumers early and secures loyalty for future growth cycles.

The retail revolution

The core of KKCL's ‘Vision 2028’ is an aggressive retail infrastructure scale-up, moving away from a traditional Multi-Brand Outlet (MBO) reliance to a direct-to-consumer focus through Exclusive Brand Outlets (EBOs). Hemant Jain, Joint Managing Director, affirmed this commitment stating, "The strong performance of our existing EBOs has instilled confidence in this strategy, and we believe that further expansion will continue to yield positive results."

Table: Retail initiatives

Navigating challenges with profits

KKCL's integrated model is a direct response to historical industry challenges, demonstrating a commitment to ‘Stability, Sustainability, and Scalability’ over reckless growth. Meanwhile the Indian apparel market has seen an onslaught of international brands, private labels, and the rise of e-commerce, creating fierce pricing pressure. To face this realty unlike some competitors who chase market share via deep discounting, KKCL's management has maintained a policy of ‘profit-led growth’. The company has been able to sustain strong EBIDTA margins (consistently in the 18-20 per cent range) by leveraging four in-house manufacturing units (ISO certified) to control the entire value chain, reducing external reliance, and improving cost efficiency. And driving higher realizations through a stronger focus on full-price sales and a premium denim product mix.

The COVID-19 crisis and inventory shocks

The pandemic necessitated a temporary shift to a 'just-in-time' inventory model, impacting FY24 revenue growth. A foundational management principle has been to avoid high-risk leveraged growth and focus on building strong cash reserves. This foresight and fortitude allowed the company to weather the crisis with minimal long-term impact and quickly accelerate its retail expansion post-pandemic (adding 131 EBOs between FY21-23), positioning it perfectly for the subsequent consumer recovery. As Kewalchand P Jain, Chairman and Managing Director says, "Our foresight and fortitude are enabling our brand equity to outshine in these tough times. We have been aggressively investing to build strong product brands... but have always avoided high-risk leveraged growth."

The strong Q2 performance contributed to outstanding half-yearly growth, reaffirming the success of KKCL's strategic execution.

Table: KKCL’s financial overview

Particulars (Rs cr) H1 FY26 H1 FY25 Y-O-Y growth Revenue from Operations 587.8 459.5 27.90% Gross Profit (GP) 247.8 197.5 25.50% EBIDTA 112.5 91.5 23.00% EBIDTA Margin (%) 19.10% 19.90% -

Thus KKCL’s story is a compelling blueprint for how a legacy Indian fashion house is adapting to a globalized, fast-fashion landscape. Its combination of a disciplined financial framework and agile retail expansion, backed by the strategic acquisition of Kraus, positions it for transformative growth. With the macro environment showing signs of sustained recovery and discretionary spending on the rise, KKCL is progressing toward its Vision 2028 roadmap, a target of Rs 1,500 crore in revenue, driven by continued product innovation, premiumization, and deeper retail expansion. As Managing Director Hemant Jain sums up, "We remain committed to driving profitable brand-led growth while delivering superior shareholder returns over the long term."

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