K.P.R. Mill’s shares jumped more than 6% after reporting steady revenue growth and improved margins in the June quarter, amid cautious outlook from brokerages and plans for significant capital expenditure to boost future growth.
K.P.R. Mill shares rose more than 6% after the company’s June quarter results, as investors digested a picture of steady top-line growth, firmer margins and a cautious view from brokerages on the stock’s upside. According to Motilal Oswal Financial Services, revenue for the quarter increased 9.6% year on year to ₹1,940 crore, helped by a stronger sugar business, while the textile arm advanced only 1%, suggesting a mixed performance across the group’s core segments.
Profitability improved from a year earlier. Motilal Oswal said gross margin widened by 480 basis points to 40.7% and EBITDA margin rose to 19.4%, up 180 basis points. Business Upturn reported that consolidated net profit came in at ₹212.7 crore, up 4.6% from the same quarter last year, while revenue was ₹1,802 crore; ICICI Direct, meanwhile, said the textile business, which accounts for most of sales, grew 12.3% but sugar revenue slipped 2.2%, underscoring the uneven nature of the quarter.
Looking ahead, Motilal Oswal expects K.P.R. Mill’s revenue growth to stay close to 13%, supported by capacity additions, garment demand and a larger contribution from branded apparel. The brokerage said margins could improve further by FY28, with EBITDA margin seen at 21.5% and APAT margin at 14.8%, helped by operating leverage and a better product mix. It also said the company’s leadership in garmenting and its scale among listed peers position it well for the medium term.
Even so, the broker kept a Neutral rating and a target price of ₹1,200, arguing that the current valuation already reflects much of the expected growth. Nuvama Institutional Equities pointed to another reason for investor attention: K.P.R. Mill has announced fresh capital expenditure of ₹1,230 crore, to be funded through internal accruals, with the brokerage estimating that the spending could add about ₹2,000 crore in topline at full capacity. K.P.R. Mill’s broader FY26 performance also showed a stronger full-year base, with consolidated net profit of ₹866.50 crore and total income of ₹6,784.29 crore, according to a stock market filing summarised by Scanx Trade.
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