Kitex Garments Limited announced the approval of its Unaudited Standalone and Consolidated Financial Results for the quarter and nine months ending December 31, 2025. The results, approved during the Board meeting held on February 13, 2026, show standalone net profit of ₹1,035.42 lakhs for the quarter. Auditors issued a qualified conclusion on standalone results due to uncertainty surrounding the recoverability of the investment in Associate Company, Kitex USA LLC.
Board Approval of Q3 FY2026 Financials
The Board of Directors of Kitex Garments Limited convened on February 13, 2026, from 12:15 P.M. to 3:45 P.M., to consider and approve the Unaudited Standalone and Consolidated Financial Results for the quarter and nine months ended December 31, 2025. The Limited Review Report from the Statutory Auditor was also approved and enclosed with the declaration.
Standalone Financial Highlights (Q3 FY2026)
Key figures from the standalone results reveal the company’s performance for the quarter ended December 31, 2025:
- Total Income stood at ₹17,341.40 lakhs.
- Profit Before Tax before exceptional items was ₹1,498.72 lakhs.
- Exceptional Items (Write back of expected credit loss allowance) amounted to ₹1,750.00 lakhs.
- Net Profit for the quarter reached ₹1,035.42 lakhs.
- Basic Earnings Per Share (EPS) for the quarter was ₹0.52.
For the nine months ended December 31, 2025, the standalone Net Profit was ₹4,727.78 lakhs, and the diluted EPS was ₹2.37.
Consolidated Financial Performance Summary
The consolidated statement reflects the group’s results, including subsidiaries and the share of loss from the Associate:
- The Consolidated Total Income for the quarter ended December 31, 2025, was ₹18,700.28 lakhs.
- The Consolidated Net Loss for the quarter stood at (₹1,700.20) lakhs.
- For the nine months ended December 31, 2025, the Consolidated Net Loss was (₹391.71) lakhs, with Total Comprehensive Loss attributable to equity holders being ₹986.41 lakhs.
- Consolidated Basic EPS for the quarter was reported as (₹0.47).
Auditor’s Review and Qualification on Standalone Results
The auditors noted a significant qualification regarding the standalone results. The qualification pertains to the ₹2,776.24 lakhs investment in the Associate Company, Kitex USA LLC. As the associate’s net worth has been fully eroded, management determined the carrying value based on unobservable inputs from projected cash flows. The auditors were unable to obtain corroborative evidence to substantiate the reasonableness of these inputs as of December 31, 2025. This same matter was also qualified in prior reporting periods.
Basis for Review Conclusion on Consolidated Results
For the consolidated results, the review procedures included information from six subsidiaries that were not subjected to review, totaling revenue of ₹1.52 lakhs and a net loss of (₹226.09) lakhs for the quarter. The conclusion on the consolidated statement is based solely on this management-prepared unaudited information, which was deemed not material to the Group.
Corporate Developments and Notes
The notes to the results highlighted several key points:
- In February 2025, the Board approved a Scheme of Arrangement to demerge the textile business of Kitex Childrenswear Limited (KCL) into Kitex Garments Limited, pending regulatory approval.
- During the second quarter, the Company received ₹9,486.65 lakhs from Kitex USA LLC, leading to the write-back of ₹1,750 lakhs in expected credit loss allowance, treated as an exceptional item.
- The Company continues to monitor the impact of the consolidation of 29 existing labour legislations into four New Labour Codes by the Government of India, effective November 21, 2025.
Source: BSE
