KG Denim Limited has announced that its board of directors will convene on February 13, 2026, to consider the approval of unaudited financial results for the third quarter of fiscal year 2026. The meeting notification was submitted to BSE Limited on January 28, 2026, in compliance with regulatory requirements.

Board Meeting Details

The board meeting is scheduled to address several key agenda items related to the company's financial performance for the reporting period.

Trading Window Restrictions

The company has implemented trading window closure measures in accordance with insider trading regulations. The trading window for all designated persons and their immediate relatives has been closed since January 1, 2026, as previously notified on December 27, 2025.

Regulatory Compliance

The board meeting notification has been filed under Regulation 29 of the Securities and Exchange Board of India Listing Obligations and Disclosure Requirements Regulations, 2015. The company has also posted the notice on its official website in compliance with Regulation 46 requirements.

The notification was signed by M Balaji, Company Secretary and Compliance Officer, who holds ACS membership number 8575. KG Denim Limited operates under CIN L17115TZ1992PLC003798 and trades on BSE with scrip code 500239.

KG Denim Limited , a prominent player in the textile industry, has reported a mixed bag of financial results for the quarter ended September 30, 2025. The company has managed to turn a profit despite facing significant challenges, including a sharp decline in revenue and ongoing issues with trade creditors.

Financial Performance

KG Denim posted a standalone net profit of ₹187.00 lakhs for the quarter ended September 30, 2025, marking a significant turnaround from the losses reported in previous quarters. However, this positive bottom line comes against the backdrop of a substantial revenue decline.

The company's revenue saw a sharp decline of 81.51% year-over-year, dropping from ₹11.90 crores in Q2 FY2025 to ₹2.20 crores in Q2 FY2026. Despite this significant reduction in top-line performance, KG Denim managed to improve its EBITDA from a negative ₹12.20 crores to a positive ₹12.70 crores, indicating substantial cost-cutting measures and operational efficiency improvements.

Operational Highlights

The company's operating profit margin (OPM) saw a remarkable improvement, rising from -103.04% in Q2 FY2025 to 663.10% in Q2 FY2026. This unusual figure suggests that the company might have benefited from exceptional items or significant cost reductions that outweighed the revenue decline.

Interest expenses remained a concern, increasing from -₹0.20 crores in Q2 FY2025 to ₹8.00 crores in Q2 FY2026, potentially indicating higher debt levels or increased borrowing costs.

Challenges with Trade Creditors

While KG Denim has shown resilience in its profit figures, the company faces significant challenges with its trade creditors. Out of total trade creditors amounting to ₹7,098.00 lakhs, the company is dealing with recovery notices totaling ₹942.00 lakhs. This situation highlights potential liquidity pressures and the need for careful management of supplier relationships.

KG Denim has reported that it is actively negotiating settlements with these creditors. Some of these negotiations have already resulted in settlements, while others are ongoing. The company has also submitted a payment schedule to creditors who have approached the National Company Law Tribunal (NCLT), indicating a proactive approach to addressing these financial obligations.

Looking Ahead

The textile industry continues to face headwinds, and KG Denim's significant revenue decline reflects these challenges. However, the company's ability to turn a profit despite these obstacles suggests that management has implemented effective cost-control measures and operational improvements.

Investors and stakeholders will be closely watching how KG Denim manages its creditor issues and whether it can sustain its profitability while working to rebuild its revenue base. The company's future performance will likely depend on its ability to resolve creditor disputes, manage its debt effectively, and capitalize on any recovery in the textile market.

As the situation evolves, it will be crucial for KG Denim to maintain transparency with its stakeholders and continue its efforts to strengthen its financial position and operational efficiency.