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KPR Mills (KPR) consolidated revenues reported 9.6% YoY growth

ICICIdirect Research 11 Aug 2026 DISCLAIMER

News: KPR Mills (KPR) consolidated revenues reported 9.6% YoY growth to Rs.1935.5cr in Q1FY27. Textile revenues reported muted performance of just 1% YoY growth to Rs.1500cr while sugar business (~20% of revenues) reported 61% YoY growth to Rs.420cr. Gross margins improved by 476bps YoY to 40.7% while EBITDA margins improved by 180bps YoY to 19.4% in Q1FY27. Textile business EBIT margin improved 128bps YoY to 18.5% and sugar business margins stood at 9.5% in Q1FY27 vs 0.3% in Q1FY26. Consolidated EBITDA grew by 21% YoY to Rs.374.8cr in Q1FY27. PAT grew by 22% YoY to Rs.2585cr. The company has announced capex plans of Rs.1225cr. Amongst greenfield facilities, It is setting up a new ready-made garment factory in Odisha for Rs.450cr which will be commissioned in Q1FY28, New processing factory in Perundurai for Rs.250cr, expected to be commissioned in Q2FY28 and sweater factory in Coimbatore for Rs.75cr expected to be commissioned in Q4FY27. It has also announced mordernisation cum expansion projects worth Rs.455cr which will be commissioned over Q3FY27 and Q4FY27. It expects ~Rs.2000cr turnover from these additions and greenfield projects

View: KPR’s revenues were majorly driven by the sugar business, while textile revenues stayed almost flat during the quarter. We believe muted textile revenues could be due to deferment of order booking in Q1FY27. The company derives ~60% of revenues from EU (incl. UK); with UK FTA implemented in July, we believe majority of orders were deferred to benefit from tariff savings, as tariffs on Indian textile imports would reduce to Nil from 12% earlier. The ongoing West Asia crisis could have also contributed to lower shipments. Further, textile margins would have improved largely due to lower US tariffs YoY (US contributes ~16% to textile business). KPR currently has 40,000 MT fabric capacity and 204mn readymade knitted apparel capacity per annum. We believe further capacity investments indicate good order visibility, supported by the new UK FTA, upcoming EU FTA and reduced US tariffs.

Impact: Neutral

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