Kitex Garments quietly turned heads with a massive rally in a market climate where many stocks struggled to stay afloat. From ₹69 in June 2024, the company’s shares have climbed over 334% to touch ₹300 — and even reached a new all-time high of ₹324.40 during the last trading session.
This uptrend has unfolded in spite of the broader Indian stock market facing strong selling pressure, especially in the latter half of 2024. For Kitex, the numbers speak for themselves: a solid 219% return just in the first half of calendar year 2025 (H1CY25).
Let’s put that into perspective — an investor who had parked ₹1 lakh in Kitex shares back in June 2024 would now be looking at around ₹4.35 lakh. Of course, past performance doesn’t guarantee future returns, but this is one example of how quickly fortunes can shift in equity markets.
One of the factors that may have helped Kitex — and the broader textile sector — is the recently signed Free Trade Agreement (FTA) between India and Britain. Under the deal, 99% of Indian exports, including textiles, will be exempt from import duty in the UK.
This puts Indian exporters in a stronger position to compete with players from Pakistan, Bangladesh, and Sri Lanka, who already enjoy duty-free access under the UK’s Generalised Scheme of Preferences. The hope is that Indian firms will now gain a firmer footing in the British market.
And with India already benefiting from low labour costs and abundant cotton supply, some market watchers feel that domestic textile firms are well-positioned for long-term growth — though it’s too early to draw definitive conclusions.
Kitex Garments, known for its infant and children’s apparel, has also been on an expansion spree. Its wholly owned arm, Kitex Apparel Parks Ltd (KAPL), is spearheading a major scale-up of operations with a ₹3,550 crore plan.
So far, ₹1,550 crore has been spent, and the Warangal manufacturing unit is expected to go live by April 2025. The second phase, based in Hyderabad, is scheduled to begin operations in December 2026. Once fully up and running, the company aims for annual revenues of ₹5,000 crore from these two units.
There’s also a push to increase exports to the US and Europe, which are key markets for Kitex.
On the financial side, Kitex clocked a net profit of ₹41 crore in the third quarter of FY25, more than double the ₹20 crore reported in the same quarter last year. Sequentially too, profit rose from ₹37 crore reported in the September-ending quarter.
Revenue during the quarter stood at ₹276 crore, up from ₹173 crore in Q3FY24. Operating profit saw a 54.3% jump year-on-year to ₹54 crore. However, the EBITDA margin stayed flat at 20%, indicating that while revenue and profit surged, cost pressures may have stayed consistent.
Disclaimer:
(This article is meant for informational purposes only and should not be construed as investment advice. Stock markets are subject to risks and past performance is not indicative of future returns. Readers are advised to consult with a certified financial adviser before making any investment decisions)