Rs 3,000 Crore Fundraising Plan: Triple-Digit PE Garment Company Reports Q1 FY27 Consolidated Loss of Rs 17.12 Crore; Revenue Declines 19.46% YoY

Kitex Garments announced its consolidated financial results for the quarter ended June 30, 2026, along with a proposal to raise funds of up to Rs 3,000 crore through Qualified Institutional Placement (QIP) or other permissible modes, subject to shareholder and regulatory approvals. The Board approved the proposals at its meeting held on August 14, 2026

Kitex Garments Consolidated Q1 FY27 Performance

Kitex Garments reported consolidated revenue from operations of Rs 158.43 crore in Q1 FY27, compared with Rs 196.69 crore in the corresponding quarter of the previous year, registering a decline of 19.46 per cent YoY. Consolidated total income stood at Rs 166.07 crore, compared with Rs 197.42 crore in Q1 FY26, representing a decline of 15.88 per cent YoY. Total expenses stood at Rs 179.42 crore during the quarter, compared with Rs 169.22 crore in the year-ago period. The consolidated financial results are reported in rupees lakh in the filing.

The company reported a consolidated loss before Tax of Rs 13.35 crore in Q1 FY27, compared with a profit before tax of Rs 28.20 crore in Q1 FY26. After tax expenses of Rs 3.77 crore, consolidated net loss stood at Rs 17.12 crore, compared with a net profit of Rs 19.30 crore in the corresponding quarter of the previous year. The company reported a net loss of Rs 8.99 crore attributable to equity holders of the holding company, while the loss attributable to non-controlling interest stood at Rs 8.13 crore.

Rs 3,000 Crore Fundraising Plan

Alongside the Quarterly Results, the Board approved a proposal to raise funds of up to Rs 3,000 crore through the issuance of equity shares, non-convertible debentures along with warrants, other eligible securities convertible into equity shares, or a combination of such securities. The fundraising may be undertaken through one or more QIP tranches or other permissible modes, subject to applicable regulatory and statutory approvals and shareholder approval.

The proposed issue will be determined by the Board or its authorised committee at an appropriate time. The filing specifies that QIP is one of the proposed issuance routes under the applicable SEBI regulations.
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Business and Other Developments

The company operates in the textile infant and kids apparel manufacturing segment. Its consolidated results for Q1 FY27 include the performance of its subsidiaries and associate. The company has also approved a Scheme of Arrangement involving Kitex Childrenswear Limited for the demerger of its textile business into Kitex Garments, subject to obtaining the necessary regulatory approvals.

The company has provided guarantees for borrowings availed by Kitex Apparel Parks Limited from Banks. The sanctioned amount stood at Rs 2,023 crore, of which Rs 1,012.04 crore was outstanding as of June 30, 2026.

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Disclaimer: The article is for informational purposes only and not investment advice.