From Fibre to Fortune: Why KPR Mills Is India's Most Underrated Textile Powerhouse
Brokerage Free Team •June 25, 2026 | 9 min read • 428 views
1. Company Snapshot
|
Metric |
Value |
Source / Notes |
|
Founded / HQ |
1984 | Coimbatore, TN |
Four decades of operational excellence [Company records] |
|
CIN / Exchanges |
L17111TZ2003PLC010518 | NSE & BSE |
Ticker: KPRMILL | BSE Code: 532889 |
|
Business Model |
Vertically Integrated — Fibre to Fashion |
Spinning → Knitting → Dyeing → Garments → Retail |
|
Manufacturing Units |
15 Advanced Units |
Across Tamil Nadu [Groww / Company presentation] |
|
Workforce |
~30,000+ (90% women) |
Major rural livelihood employer in TN [Company] |
|
Export Markets |
60+ Countries |
Europe 63.1% | N. America 17.9% | Australia 14.9% [AUDITED] |
|
Credit Ratings |
CARE AA+ / CARE A1+ |
Long-term & short-term — CARE Ratings [ScanX] |
|
Outstanding Borrowings |
NIL — March 31, 2026 |
Confirmed via SEBI Large Corporate filing [AUDITED] |
|
Promoter Holding |
67.52% (NIL pledged) |
As of March 31, 2026 — BSE shareholding pattern [AUDITED] |
|
Market Capitalisation |
~₹39,642 Crore |
As of June 2026 [MKT — Screener.in] |
2. Master 5-Year Consolidated Performance Dashboard [FY22–FY26]
All figures below are from audited consolidated financial statements filed with BSE & NSE. FY22–FY25 sourced from KPR Mill's investor presentation; FY26 from the May 12, 2026 board-approved audited results.
A. Profit & Loss Summary [AUDITED — Consolidated]
|
Metric (₹ Crore) |
FY22 |
FY23 |
FY24 |
FY25 |
FY26 [AUDITED] |
YoY Δ (FY26 vs FY25) |
|
Revenue from Operations |
4,953 |
5,763 |
6,388 |
6,388 |
6,650 |
+ 4.1% |
|
Total Income |
5,084 |
5,923 |
6,543 |
6,462 |
6,784 |
+ 5.0% |
|
EBITDA |
1,253 |
1,179 |
1,311 |
1,320 |
1,401 |
+ 6.1% |
|
EBITDA Margin (%) |
24.6% |
20.5% |
20.5% |
20.7% |
20.65% |
Stable |
|
Depreciation |
178 |
200 |
214 |
229 |
247 |
+ 7.9% |
|
EBIT |
1,075 |
979 |
1,097 |
1,091 |
1,154 |
+ 5.8% |
|
Finance Costs |
23 |
26 |
22 |
18 |
15 |
− 16.7% |
|
PBT (Pre-Tax Profit) |
1,111 |
1,029 |
1,131 |
1,101 |
1,177 |
+ 6.9% |
|
Tax Expense |
269 |
215 |
326 |
286 |
311 |
+ 8.7% |
|
PAT (Net Profit) |
842 |
814 |
805 |
815 |
867 |
+ 6.4% |
|
PAT Margin (%) |
17.0% |
14.1% |
12.6% |
12.8% |
13.0% |
+ 20 bps |
|
EPS — Basic & Diluted (₹) |
24.63 |
23.80 |
23.55 |
23.85 |
25.35 |
+ 6.3% |
B. Balance Sheet Summary [AUDITED — Consolidated]
|
Metric (₹ Crore) |
FY22 |
FY23 |
FY24 |
FY25 |
FY26 [AUDITED] |
YoY Δ (FY26 vs FY25) |
|
Total Assets |
4,166 |
4,887 |
5,513 |
5,962 |
6,833 |
+ 14.6% |
|
Total Equity (Net Worth) |
3,071 |
3,653 |
4,209 |
5,002 |
5,698 |
+ 13.9% |
|
Total Borrowings |
497 |
468 |
418 |
271 |
238 |
− 12.2% |
|
Net Debt |
370 |
315 |
255 |
200 |
175 |
− 12.5% |
|
Cash & Equivalents |
127 |
153 |
163 |
71 |
63 |
− 11.3% |
|
Book Value per Share (₹) |
89.8 |
106.8 |
123.1 |
146.3 |
166.6 |
+ 13.9% |
|
Debt-to-Equity Ratio (x) |
0.16 |
0.13 |
0.10 |
0.05 |
0.04 |
Improving |
C. Cash Flow Summary [AUDITED — Consolidated]
|
Metric (₹ Crore) |
FY22 |
FY23 |
FY24 |
FY25 |
FY26 [AUDITED] |
YoY Δ (FY26 vs FY25) |
|
Operating Cash Flow |
834 |
1,149 |
1,197 |
1,401 |
1,108 |
− 20.9% |
|
Capex (Investing Outflows) |
609 |
580 |
586 |
615 |
938 |
+ 52.5% |
|
Free Cash Flow (OCF−Capex) |
225 |
569 |
611 |
786 |
170 |
− 78.4% |
|
Dividend Paid (₹ Crore) |
N/A |
171 |
171 |
171 |
171 |
Stable |
|
Dividend per Share (₹) |
N/A |
5.00 |
5.00 |
5.00 |
5.00 |
Stable |
|
Dividend (% of face value) |
N/A |
500% |
500% |
500% |
500% |
Consistent |
D. Long-Run CAGR Profile [13-Year Historical | Alpha Spread Analysis]
|
Metric |
Value |
Source / Notes |
|
Revenue CAGR (13-year) |
13% p.a. |
Consistent long-run compounding [Alpha Spread — EST] |
|
Operating Income CAGR (13-yr) |
22% p.a. |
Strong operational leverage growth [Alpha Spread — EST] |
|
Net Income CAGR (13-yr) |
28% p.a. |
Exceptional profit compounding [Alpha Spread — EST] |
|
4-Year Revenue CAGR (FY22–FY26) |
7.6% p.a. |
Calculated from audited revenue figures [AUDITED] |
|
4-Year PAT CAGR (FY22–FY26) |
0.7% p.a. |
PAT plateaued FY22–FY25; uptick in FY26 [AUDITED] |
|
4-Year EPS CAGR (FY22–FY26) |
0.7% p.a. |
Mirrors PAT trajectory [AUDITED] |
|
Revenue CAGR — Next 3 Yrs (proj.) |
~12% p.a. |
Analyst consensus projection [EST] |
|
Operating Income CAGR — Next 3 Yrs |
~15% p.a. |
Improving margin mix [EST] |
3. FY26 Quarterly Performance Trend [All Quarters Consolidated — AUDITED]
The table below consolidates all four quarters of FY26 and the full-year total into a single view. Q3 FY26 figures are derived from the 9-month cumulative minus H1. All [AUDITED] except Q3 which is [DERIVED].
Consolidated Quarterly P&L Trend [₹ Crore | AUDITED]
|
Metric (₹ Crore) |
Q1 FY26 |
Q2 FY26 |
Q3 FY26 |
Q4 FY26 |
FY26 Full Year |
|
Total Income |
1,802 |
1,569 |
1,588 |
1,825 |
6,784 |
|
Revenue from Operations |
1,752 |
1,513 |
1,601 |
1,785 |
6,650 |
|
EBITDA |
346 |
— |
333 |
348 |
1,401 |
|
EBITDA Margin (%) |
19.2% |
— |
20.9% |
19.5% |
20.65% |
|
PAT (Consolidated) |
213 |
218 |
208 |
227 |
867 |
|
EPS — Basic (₹) |
6.23 |
6.38 |
6.08 |
6.64 |
25.35 |
|
YoY Revenue Growth |
+11.4% |
+9.9% |
— |
+0.9% |
+5.0% |
|
YoY PAT Growth |
+4.6% |
+6.4% |
— |
+8.9% |
+6.4% |
Quarter-by-Quarter Narrative [AUDITED]
Q1 FY26: Strongest quarter — Revenue +11.4%, Garment volume +14.4%, Sugar volume +26.1%
Q2 FY26: Standalone PAT fell 37.1% (sugar seasonality); Consolidated resilient at +6.4% YoY
Q3 FY26: EBITDA margin peaked at 20.94% — highest of the year; PAT ₹208 Cr [derived]
Q4 FY26: Revenue +21.6% QoQ; PAT +8.9% QoQ; margin slight dip to 19.5% from Q3 peak
Full Year: PAT ₹866.5 Cr (+6.4%); EPS ₹25.35 (+6.3%); EBITDA Margin stable at 20.65%
4. Segment-Wise Revenue & Profit Summary [AUDITED]
|
Segment |
FY24 Rev. |
FY25 Rev. |
FY26 Rev. |
YoY Δ |
FY26 Pre-Tax Profit |
|
Textile (Garments) |
₹5,065 Cr |
₹5,185 Cr |
₹5,435 Cr |
+ 4.8% |
₹1,081 Cr |
|
Sugar & Ethanol |
₹1,068 Cr |
₹1,115 Cr |
₹1,173 Cr |
+ 5.2% |
₹96 Cr (+71% YoY) |
|
Renewable Energy |
Captive |
Captive |
Captive |
Savings |
~₹110 Cr/yr savings |
|
FASO (Retail Brand) |
Nascent |
Nascent |
Growing |
— |
Premium D2C segment |
|
Total Consolidated |
₹6,388 Cr |
₹6,388 Cr |
₹6,650 Cr |
+ 4.1% |
₹1,177 Cr PBT |
Textile Segment Operational KPIs [AUDITED — Investor Presentation]
|
Metric |
Value |
Source / Notes |
|
Garment Output Capacity |
157 Million pieces/yr |
Brownfield expansion to 177M pieces underway [AUDITED] |
|
Q1 FY26 Garment Volume |
50.05 Million pieces |
+14.4% YoY [AUDITED] |
|
Q1 FY26 Garment Revenue |
₹959 Crore |
+20.8% YoY from ₹794 Crore [AUDITED] |
|
Spinning Capacity |
~3,50,000 Spindles |
Compact, melange, combed, BCI, organic variants |
|
Knitting / Fabric Capacity |
25,000 MT per annum |
Zero liquid discharge compliant [Company] |
|
Export Geography — Europe |
63.1% (FY26) |
Up from 61.1% in 9MFY26 [AUDITED] |
|
Export Geography — N. America |
17.9% (FY26) |
Stable major market [AUDITED] |
|
Export Geography — Australia |
14.9% (FY26) |
Third largest geography [AUDITED] |
|
Major Clients |
H&M, M&S, Decathlon |
Validated from company filings & product catalogues |
Sugar & Ethanol Operational KPIs [AUDITED]
|
Metric |
Value |
Source / Notes |
|
Sugar Crushing Capacity |
20,000 TCD |
Tonnes of cane per day [AUDITED] |
|
Ethanol Production Capacity |
360 KLPD |
Kilolitres per day — fuel grade + industrial [AUDITED] |
|
Q1 FY26 Sugar Volume |
53,028 MT |
+26.1% YoY [AUDITED] |
|
Q1 FY26 Sugar Revenue |
₹191 Crore |
Up from ₹161 Crore in Q1 FY25 [AUDITED] |
|
FY26 Segment Revenue |
₹1,173 Crore |
Up from ₹1,115 Crore FY25 (+5.2%) [AUDITED] |
|
FY26 Pre-Tax Profit |
₹96 Crore |
Up from ₹56 Crore FY25 (+71.4%) [AUDITED] |
Renewable Energy Portfolio [Company Investor Presentation]
|
Metric |
Value |
Source / Notes |
|
Wind Energy |
61 Windmills = 92 MW |
NOT 61.92 MW — a common misreport [Company pres.] |
|
Solar Energy |
12 MW |
Installed at manufacturing units [Company pres.] |
|
Total Green Capacity |
104 MW |
Wind 92 MW + Solar 12 MW [Company pres.] |
|
Captive Power Coverage |
~80% |
Of textile unit requirements met in-house [Company] |
|
Annual Energy Savings |
~₹110 Crore |
Direct bottom-line cost saving [Company] |
|
CO₂ Reduction |
~1,75,000 MT/yr |
Annual emission reduction from green energy [Company] |
5. Shareholder & Ownership Profile [AUDITED — BSE Shareholding Pattern]
|
Metric |
Value |
Source / Notes |
|
Promoter Holding |
67.52% |
March 31, 2026 | Change: −3.16% YoY (block deal) [AUDITED] |
|
Promoter Pledging |
NIL — 0% |
Confirmed SEBI Reg 31(4) April 2026 disclosure [AUDITED] |
|
Mutual Fund Holding |
17.73% |
Up from 14.84% in March 2025 (+2.89%) [AUDITED] |
|
FII / FPI Holding |
6.63% |
147 FII investors as of March 2026 [AUDITED] |
|
Insurance Companies |
1.29% |
Marginally down from 1.43% in prior quarter [AUDITED] |
|
Retail / Other Public |
~6.8% |
Residual public float [derived from above] |
|
Notable: SBI Mutual Fund |
5.74% |
Down from 7.74% — reduced stake [BSE] |
|
Outstanding Borrowings |
NIL — March 31, 2026 |
SEBI Large Corporate framework disclosure [AUDITED] |
|
Total Shares Outstanding |
~34.20 Crore |
Implied from EPS & PAT [AUDITED — derived] |
6. Competitive Moat & Growth Catalysts
5 Pillars of KPR Mills' Durable Competitive Advantage
1. Vertical Integration — Fibre to finished garment; margin captured at every value-added stage
2. Scale & Cost Efficiency — 3,50,000 spindles, 157M+ garments/year; unmatched cost leverage
3. Global Client Relationships — H&M, M&S, Decathlon signal quality credibility and sticky demand
4. Business Diversification — Sugar + Ethanol + Renewable energy provide counter-cyclical buffers
5. Sustainability Credentials — ZLD, BCI cotton, CMIA REEL yarn, organic FASO brand, 104 MW green energy
Key Growth Catalysts (Validated from audited data & policy sources)
▶ China+1 / Bangladesh+1 Shift: Global brands accelerating India sourcing; KPR audit-ready and certified
▶ Brownfield Garmenting: Expansion to 177M pieces from 157M — Q1 FY26 already +14.4% volume
▶ Ethanol Policy Windfall: EBP 20% blending target; Sugar segment profit +71% in FY26 already visible
▶ Rising Realisations: Q1 garment revenue +20.8% vs volume +14.4% — value growing faster than volume
▶ Institutional Conviction: MF holding +2.89 ppt to 17.73%; 147 FIIs invested as of March 2026
▶ Balance Sheet Strength: D/E 0.04x; NIL outstanding borrowings; CARE AA+ rated; room for inorganic growth
7. ESG & Sustainability Summary
|
Metric |
Value |
Source / Notes |
|
Zero Liquid Discharge |
100% ZLD compliant |
All textile processing units [Company] |
|
Wind Energy |
92 MW (61 windmills) |
Captive green power [Company presentation] |
|
Solar Energy |
12 MW installed |
At manufacturing units [Company] |
|
Green Power Coverage |
~80% of textile needs |
Reduces grid dependency significantly [Company] |
|
CO₂ Emission Reduction |
~1,75,000 MT/year |
Annual reduction vs grid power [Company] |
|
Energy Cost Savings |
~₹110 Crore/year |
Direct EBITDA benefit [Company] |
|
Workforce Composition |
~90% women |
Out of ~30,000+ employees [Company] |
|
Cotton Certification |
BCI & CMIA REEL |
Better Cotton Initiative + REEL yarn certified |
|
Organic Cotton Brand |
FASO |
100% organic cotton — innerwear & athleisure D2C |
|
CARE Credit Rating |
AA+ / A1+ |
Long-term & short-term [ScanX — CARE Ratings] |
8. Risk Matrix
|
Risk Factor |
Severity |
Mitigation |
|
Cotton Price Volatility |
MEDIUM |
3,50,000-spindle backward integration partially hedges raw material costs |
|
Standalone Margin Pressure |
MEDIUM |
Standalone PAT fell in Q2 FY26 (-37%); consolidated resilience is the key metric to watch |
|
Global Demand Slowdown |
MEDIUM-HIGH |
Diversified clients in 60+ countries across Europe, Americas & Australia reduce concentration |
|
Bangladesh Competition |
MEDIUM |
BCI/organic certifications and audit-ready compliance are structural differentiators |
|
Promoter Stake Dilution |
LOW-MEDIUM |
May 2025 block deal reduced stake 316 bps; still strong at 67.52%; NIL pledging |
|
Currency Risk |
LOW-MEDIUM |
Export-led model benefits from INR depreciation; partial natural hedge built in |
|
Ethanol Policy Reversal |
LOW |
EBP 20% blending has strong national energy security mandate; near-term reversal unlikely |
|
Valuation Premium Risk |
MEDIUM |
P/E ~38x vs industry ~23x requires consistent earnings execution to hold multiple |
|
Free Cash Flow Decline |
MEDIUM |
FCF dropped sharply in FY26 (₹170 Cr vs ₹786 Cr in FY25) due to elevated ₹938 Cr capex |
9. Market Data Snapshot [June 2026]
|
Metric |
Value |
Source / Notes |
|
Current Market Price (approx.) |
~₹1,045 |
NSE: KPRMILL [MKT — as of June 2026] |
|
52-Week Range |
₹743 – ₹1,389 |
Source: Investing.com [MKT] |
|
Market Capitalisation |
~₹39,642 Crore |
Up ~5.8% YoY [MKT — Screener.in] |
|
P/E Multiple (approx.) |
~41.2x |
CMP ₹1,045 ÷ EPS ₹25.35 [derived from AUDITED EPS] |
|
P/B Multiple (approx.) |
~6.3x |
CMP ₹1,045 ÷ BV ₹166.6 [derived from AUDITED equity] |
|
Dividend Yield (approx.) |
~0.48% |
₹5 DPS ÷ ₹1,045 CMP [derived from AUDITED DPS] |
|
Payout Ratio (approx.) |
~19.7% |
₹5 DPS ÷ ₹25.35 EPS [derived from AUDITED data] |
|
Enterprise Value (approx.) |
~₹39,817 Crore |
Mkt Cap + Net Debt (₹175 Cr) [derived] |
|
EV / EBITDA (approx.) |
~28.4x |
EV ₹39,817 ÷ EBITDA ₹1,401 [derived from AUDITED] |
Disclaimer!
The content provided in this blog article is for educational purposes only. The information presented here is based on the author's research, knowledge, and opinions at the time of writing. Readers are advised to use their discretion and judgment when applying the information from this article. The author and publisher do not assume any responsibility or liability for any consequences resulting from the use of the information provided herein. Additionally, images, content, and trademarks used in this article belong to their respective owners. No copyright infringement is intended on our part. If you believe that any material infringes upon your copyright, please contact us promptly for resolution.
The content provided in this blog article is for educational purposes only. The information presented here is based on the author's research, knowledge, and opinions at the time of writing. Readers are advised to use their discretion and judgment when applying the information from this article. The author and publisher do not assume any responsibility or liability for any consequences resulting from the use of the information provided herein. Additionally, images, content, and trademarks used in this article belong to their respective owners. No copyright infringement is intended on our part. If you believe that any material infringes upon your copyright, please contact us promptly for resolution.
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