KG Denim Limited Reports Q3FY26 Loss of ₹413 Lakhs, CFO Ramaprabha S Resigns
KG Denim Limited reported a net loss of ₹413 lakhs for Q3FY26 compared to ₹187 lakhs profit in the previous quarter, despite revenue increasing to ₹338 lakhs. The company's CFO Ramaprabha S resigned due to personal reasons effective February 13, 2026. For nine months FY26, the company posted a net loss of ₹550 lakhs on revenue of ₹2,404 lakhs. The company faces ongoing challenges with trade payables of ₹7,884.41 lakhs and restructuring issues with certain lenders, while maintaining a negative net worth of ₹147.34 lakhs.
*this image is generated using AI for illustrative purposes only.
KG Denim Limited has announced its unaudited financial results for the quarter and nine months ended December 31, 2025, revealing significant operational challenges. The textile company reported a net loss of ₹413 lakhs for Q3FY26, marking a sharp reversal from the profit of ₹187 lakhs recorded in the previous quarter.
Financial Performance Overview
The company's quarterly performance showed mixed signals with revenue growth but deteriorating profitability:
| Metric | Q3FY26 | Q2FY26 | Q3FY25 |
|---|---|---|---|
| Revenue from Operations | ₹338 lakhs | ₹187 lakhs | ₹820 lakhs |
| Other Income | ₹474 lakhs | ₹33 lakhs | ₹1 lakh |
| Total Income | ₹812 lakhs | ₹220 lakhs | ₹821 lakhs |
| Net Loss/Profit | ₹(413) lakhs | ₹187 lakhs | ₹(953) lakhs |
| EPS (Basic & Diluted) | ₹(1.61) | ₹0.73 | ₹(3.72) |
Nine-Month Performance Analysis
For the nine-month period ended December 31, 2025, the company's performance remained under pressure:
| Parameter | Nine Months FY26 | Nine Months FY25 |
|---|---|---|
| Revenue from Operations | ₹2,404 lakhs | ₹4,674 lakhs |
| Total Income | ₹2,404 lakhs | ₹4,674 lakhs |
| Net Loss | ₹(550) lakhs | ₹(2,382) lakhs |
| EPS | ₹(2.14) | ₹(9.29) |
The net loss of ₹413 lakhs for Q3FY26 was recorded after accounting for ₹759.04 lakhs profit from the sale of non-core assets, which was reported under 'Other Income'.
Segment-wise Performance
The company operates through two main segments - Textiles and Power. The segmentwise revenue breakdown for Q3FY26 showed:
- Textiles segment: ₹812 lakhs revenue with segment result of ₹354 lakhs
- Power segment: No revenue reported with segment loss of ₹(261) lakhs
Leadership Changes
In a significant corporate development, Mrs. Ramaprabha S resigned from her position as Chief Financial Officer effective February 13, 2026, citing personal reasons. The resignation was announced during the Board meeting that approved the quarterly results.
Financial Challenges and Restructuring
The company continues to navigate several financial challenges. As of December 31, 2025, KG Denim has outstanding trade payables of ₹7,884.41 lakhs. Certain creditors have issued recovery notices aggregating ₹913.54 lakhs, of which the company has entered into amicable settlement arrangements for ₹382.80 lakhs.
The company has successfully implemented the State Level Banker's Committee restructuring package under RBI Master Directions on Natural Calamities. However, The South Indian Bank Limited (holding 7% exposure) and one NBFC with outstanding dues of ₹6.50 crore have dissented from the restructuring scheme. The matter remains pending before the RBI Ombudsman after hearings were conducted.
Balance Sheet Position
The company's financial position shows significant stress with negative net worth of ₹147.34 lakhs as of December 31, 2025. The paid-up equity share capital remains unchanged at ₹2,565 lakhs with a face value of ₹10 per share.
The Board of Directors meeting was held on February 13, 2026, from 5:30 PM to 9:30 PM, where these results were reviewed by the Audit Committee and subsequently approved.
Historical Stock Returns for KG Denim
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +3.46% | -1.80% | -6.54% | -16.70% | -28.56% | -43.96% |
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