K.P.R. Mill (KPR IN) – Q2FY27 Result Update – Realization driven revenue and EBITDA growth – Upgrade to ‘BUY’
Published on 29 Oct 2026
KPR reported a strong set of numbers, with revenue growing 18.9% YoY to INR19,397mn, led by robust performance across segments. The company reported EBITDA margin of 25.7%, beating our estimate of 20.0%, and a remarkable 6.4% improvement over Q2FY26. The EBITDA margin improvement primarily reflects improved realizations with gross margin improving by ~500bps. For the first half of FY27, the revenue grew by 14% YoY, and the EBITDA margin stood at 23.0%. The garments volumes during the H127 reached ~90mn pieces (Q2FY27 40.8mn), compared to ~89mn pieces (Q2FY26 39.2mn) in the similar period last year. Following a recent correction in the share price, we upgrade our rating to ‘BUY’ from ‘Accumulate’, with an SoTP-based target price of INR1,289.
