Massive surge! Why Kitex Garments shares skyrocketed 16% after Q2 results | Highlights from quarterly earnings; returns

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.At the bottom line, Kitex Garments reported a consolidated net profit of ₹13.71 crore in Q2 FY27, compared to a net loss of ₹6.2 crore in Q2 FY26. The company also staged a turnaround from the net loss of ₹17 crore reported in Q1 FY27.Overall, the Q2 FY27 results reflect a strong recovery in Kitex Garments' financial performance, supported by robust revenue growth, a sharp improvement in operating profitability and a return to the profit zone.Meanwhile, during the Q1 FY27, Kitex Garments reported a weak performance with consolidated revenue declining to ₹158.43 crore and a net loss of ₹17.13 crore in the quarter ended June 2026.

Revenue fell 4.66% quarter-on-quarter (QoQ) from ₹166.17 crore and 19.45% year-on-year (YoY) from ₹196.69 crore in the corresponding quarter last year.“The company's operating profit stood at ₹10.19 crore in the June 2026 quarter, compared with ₹1.67 crore in the preceding quarter. However, it reported a loss before tax of ₹13.36 crore and a net loss of ₹17.13 crore, marking a sharp reversal from the ₹19 crore net profit recorded in Q1 FY26, according to the company’s results summary,” said Gaurav Garg, Head - Research, Lemonn.

Kitex Garments share price performanceKitex Garments share price has witnessed a strong recovery in the recent trading sessions, gaining 19.29% over the past week. The stock has also delivered a positive return of 15.09% over the past month, indicating improved buying interest in the counter. The recent rally comes despite the stock remaining under pressure on a year-to-date basis, with a decline of 25.62%.On a longer-term basis, Kitex Garments shares have delivered mixed returns.

The stock has fallen 33.86% over the past one year, reflecting weakness during the period. However, it has generated significant gains over the past three and five years, rising 97.92% and 151.62%, respectively.On the Kitex Garments shares outlook, Garg added that the Telangana expansion offers medium-term growth potential, 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.Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.