Kitex Garments shares surged 18% to ₹136.95 on Tuesday's trading session, opening at ₹126 apiece compared to the previous close of ₹115.77 on Monday. The stock touched an intraday high of ₹137.09 on November 3, 2026, following the company's announcement of strong Q2 FY27 results. According to latest reports, the stock has witnessed a strong recovery with 19.29% gains over the past week and delivered a positive return of 15.09% over the past month. The rally was accompanied by heavy volume with average trading volume jumping over 10-fold, with a combined 13.8 million shares representing 6.9% of total equity changing hands on the NSE and BSE. Despite the recent rally, the stock remains under pressure on a year-to-date basis with a decline of 25.62%.
As reported by latest earnings data, Kitex Garments posted a consolidated net profit of ₹13.71 crore for Q2 FY27, compared to a net loss of ₹6.2 crore in the corresponding period last year. The company also staged a turnaround from the net loss of ₹17.13 crore reported in Q1 FY27. Revenue from operations showed strong growth with a 66% year-on-year increase to ₹203 crore from ₹122 crore in Q2 FY26. On a sequential basis, revenue increased 28% from ₹158 crore in Q1 FY27, indicating sustained growth in the company's business performance. According to Gaurav Garg, Head - Research at Lemonn, the company's operating profit stood at ₹10.19 crore in the June 2026 quarter, compared with ₹1.67 crore in the preceding quarter.
The company's operating performance witnessed significant improvement during Q2 FY27. EBITDA surged to ₹45 crore in Q2 FY27, compared to an operating loss of ₹16 crore in the corresponding quarter last year. Consequently, the operating profit margin (OPM) expanded sharply to 22.2% from -13.1% in Q2 FY26, reflecting a strong recovery in profitability. This improvement was supported by robust revenue growth and operational efficiency gains across the business. The turnaround was particularly notable as it marked a significant improvement from the weak Q1 FY27 performance, where the company reported a loss before tax of ₹13.36 crore and a net loss of ₹17.13 crore.
According to the company's results summary, Q1 FY27 had shown weak performance with consolidated revenue declining to ₹158.43 crore and a net loss of ₹17.13 crore. Revenue fell 4.66% quarter-on-quarter from ₹166.17 crore and 19.45% year-on-year from ₹196.69 crore in the corresponding quarter last year. However, the Q2 FY27 results reflect a strong recovery with the company returning to profitability and showing sequential improvement from the previous quarter's performance. The company's operating profit stood at ₹10.19 crore in the June 2026 quarter, compared with ₹1.67 crore in the preceding quarter, indicating sustained operational momentum.
On a longer-term basis, Kitex Garments shares have delivered mixed returns, falling 33.86% over the past one year but generating significant gains of 97.92% over the past three years and 151.62% over the past five years. The recent rally comes despite the stock remaining under pressure on a year-to-date basis, with the company showing signs of recovery through improved operational metrics and return to profitability in Q2 FY27. According to Gaurav Garg from Lemonn, the Telangana expansion offers medium-term growth potential, but sustained profitability and better balance-sheet clarity are essential before the turnaround can be established. Investors may wait on fresh investments, while existing shareholders can hold with caution.
