Kewal Kiran Clothing Limited Q3 FY26 Earnings Call Summary

Summary

Kewal Kiran Clothing Limited - Q3 FY26 Earnings Call Summary Thursday, February 12, 2026, 12:30 PM

Event Participants

Executives 2 Hemant Jain (Joint Managing Director), Pankaj Jain (President, Retail)

Analysts 8 Ankit Babel, Arpan Rathod, Bajrang Bafna, Deepak Ajmera, Naitik, Naveen Baid, Pratik, Resham Mehta

Financials & KPIs

Geographic & Segment Commentary

• Killer: Remains the flagship brand with 456 EBOs. Management is shifting strategy toward larger format stores (1,500-2,500 sq. ft.) to accommodate multiple categories like Junior Killer and potential future launches.
• Kraus (Women’s Wear): Reported robust 37.5% revenue growth with EBITDA margins expanding from 12% post-acquisition to 23.7% this quarter. Growth is driven by expansion into MBO channels and export markets.
• Lawman & Integriti: Lawman has pivoted to a D2C-focused model with 93 EBOs after discontinuing MBO distribution. Integriti has been repositioned with revised pricing to target modern trade channels.

Company-Specific & Strategic Commentary

• Strategic Pivot: The company is experimenting with ethnic wear through the “Punya” brand and exploring new categories like footwear and lifestyle accessories to drive long-term scalability.
• Distribution Mix: Consolidated revenue split remains stable at 55% retail and 45% non-retail. Management noted that margins are now balanced across both channels.
• Store Rationalization: A conscious shift is underway from store count to square footage. New flagship stores in locations like Puri (2,500 sq. ft.) are testing the viability of large-format retail.

Guidance & Outlook

Risks & Constraints

Q&A Highlights

Lawman & Integriti Repositioning

• Question: What was the impact of the strategy change on revenue during the transition? (Ankit Babel)
• Answer: Lawman saw a revenue dip during its shift from MBO to a 93-store D2C network. Integriti’s price-corrected strategy will show growth traction from Q1 FY27 (Pankaj Jain).

Store Format Strategy

• Question: Are you moving toward larger format stores like competitors? (Bajrang Bafna)
• Answer: Yes, the focus is shifting to square footage over store count. We are targeting stores above 1,500 sq. ft. to house multiple genders and brands (Hemant Jain).

Kraus Performance

• Question: What drove the 37.5% growth in Kraus? (Pratik)
• Answer: New channel expansion into MBOs and exports, plus an L2L growth of over 10%. Margins improved significantly to 23.7% due to operational synergies (Pankaj Jain/Hemant Jain).

Future Acquisitions

• Question: With significant cash reserves, are more acquisitions planned? (Arpan Rathod)
• Answer: We are always open to acquisitions but only if the brand offers a clear path to value improvement. We have successfully proved this with Kraus (Hemant Jain).

Key Takeaway

Kewal Kiran Clothing Limited delivered a robust Q3 FY26, characterized by an 18% consolidated revenue growth and a significant 34.2% jump in EBITDA. The integration of Kraus has been highly successful, with its margins now at par with the parent company at approximately 23.7%. Strategically, KKCL is navigating a transition for its secondary brands, Lawman and Integriti, while shifting Killer toward a large-format retail model to support category expansion. With 9M FY26 growth tracking at 24.4%, the company is well-positioned to exceed its FY28 revenue target of ₹1,500 crores. While management maintains a conservative EBITDA margin guidance of 17-18%, the current 20.9% performance provides a buffer for increased brand spending and retail expansion. The company remains highly liquid and open to strategic acquisitions to fuel its next phase of growth.