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EquityWireEarnings Outlook: Sales growth to sharply boost KPR Mill Q1 Profit After Tax
Earnings Outlook

Sales growth to sharply boost KPR Mill Q1 Profit After Tax

This story was originally published at 18:34 IST on 8 August 2026
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Informist, Saturday, Aug. 8, 2026

 

By Utthara E. S.

 

MUMBAI – K.P.R. Mill Ltd. is expected to report a robust increase in its consolidated net profit for the June quarter, driven by sales growth in its garment, yarn and fabric segments, according to brokerages tracking the company. The company's revenue growth is expected to be supported by profitability in the spinning segment, healthy demand from exports, and better visibility of government policy. The import duty waiver on cotton will also aid revenue growth, the brokerages added.

 

The company is expected to report a consolidated net profit of INR 2.9 billion for the June quarter, up 39% from INR 2.1 billion in the year-ago quarter, according to the average of estimates from five brokerages. The highest estimate for net profit is INR 3.9 billion from 360 ONE Capital Market Pvt. Ltd. and the lowest is INR 2.5 billion from SMIFS Ltd.

 

The company's consolidated net sales are expected to increase 11% on year to INR 19.6 billion for the June quarter from INR 17.6 billion, according to the estimates. The highest estimate for net sales is INR 22.1 billion from 360 ONE Capital and the lowest is INR 18.3 billion from SMIFS. The company's net sales are expected to increase due to good capacity utilisation in textiles, sales in the sugar and ethanol business, and higher realisation for textile products, brokerages said.

 

K.P.R. Mill is expected to report earnings before interest, tax, depreciation, and amortisation of INR 3.9 billion for the June quarter, according to the average of four estimates, up nearly 14% from INR 3.5 billion in the year-ago quarter. The highest estimate for the company's EBITDA is INR 4.5 billion from Elara Securities (India) Pvt. Ltd. and the lowest is INR 3.6 billion from SMIFS.

 

The company's EBITDA margin is expected to be between 20% and 23% for the June quarter, an expansion from 17.6% in the year-ago quarter, according to three estimates. The highest estimate for the EBITDA margin is from JM Financial Institutional Securities Pvt. Ltd. and the lowest is from Motilal Oswal Financial Services Ltd.

 

K.P.R. Mill's revenue from textiles is expected to grow 12% on year, leading to an increase in the segment's EBITDA margin to 20% for the June quarter. This growth is expected to be driven by higher realisation in yarn sales and sales growth, JM Financial said. The sugar segment is expected to report a revenue growth of 3.2% on year for the June quarter, the brokerage added. The company's garment business is expected to grow 7-9% on year and yarn and fabric is expected to grow 1-3% on year, according to Motilal Oswal.

 

The textile sector is expected to report an increase in exports as a result of the reduction in US tariffs to 10% from 50% in the June quarter, Motilal Oswal said. The Indian government's decision to waive import duty on cotton is also expected to have provided additional relief for the sector, the brokerage added.

 

Investors will track the impact of US tariff reductions on the recovery of demand and on the profitability of the textile sector, JM Financial said, and added order inflows from customers in the United Kingdom will also be a key point to monitor.

 

K.P.R. Mill is a textile and apparel manufacturing company based in Tamil Nadu. It produces yarns, fabrics, garments, sugar, and ethanol. The company will detail its June quarter earnings Monday. Shares of K.P.R. Mill ended Friday at INR 1,076.70 apiece on the National Stock Exchange, marginally down. The shares are up nearly 17% since the company announced its March quarter earnings on May 12.

 

Of the seven research reports on the company available with Informist, six have a "buy" recommendation on the stock with an average target price of INR 1,173, which is 9% higher than the current market price. Only one brokerage has a "hold" recommendation on the stock with a target price of INR 1,030.

 

The following are the Apr-Jun earnings estimates for K.P.R. Mill from five brokerages in descending order of the estimates of net profit, in INR billion:

 

Brokerages

Net Sales

Net Profit

EBITDA

360 ONE Capital Market Pvt. Ltd.

22.1

3.9

--

Elara Securities (India) Pvt. Ltd.

19.4

3.2

4.5

JM Financial Institutional Securities Pvt. Ltd.

19.6

2.7

3.9

Motilal Oswal Financial Services Ltd.

18.5

2.5

3.7

SMIFS Ltd.

18.3

2.5

3.6

Average

19.6

2.9

3.9

 

End

 

Edited by Pankaj Aher

 

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