Kitex Garments Stock Jumps 17% as Company Swings to Profit in Q2

Kitex Garments’ Earnings Rebound Faces a Test of Staying Power

A return to profit and stronger sales lifted the stock, but investors will look for evidence that the operating recovery can continue.

A turnaround across sales and operating earnings

Kitex Garments’ second-quarter results showed a marked improvement from a year earlier. Consolidated net profit was ₹13.70 crore, compared with a loss of ₹6.21 crore in the corresponding period. The company had also reported a loss of ₹17.12 crore in the preceding quarter, making the latest result a sequential turnaround as well.

Revenue from operations increased to ₹203.03 crore from ₹122.10 crore a year earlier, a 66% rise. It was up 28% from ₹158.42 crore in the quarter ended June 2026. The stronger revenue base coincided with a sharp improvement in operating performance: EBITDA was ₹44.98 crore, against a loss of ₹15.95 crore a year ago.

Taken together, the figures indicate that the quarter’s profit recovery was supported by both higher sales and a positive EBITDA result. However, one quarter does not establish a durable trend. Investors will need subsequent results to show whether revenue growth and operating profitability can be sustained.

The share-price rally comes after a steep retreat

Kitex shares rose as much as 17.65% to ₹136.20 on the BSE during Tuesday’s session. At 9.50 am, the stock was up 13.55% at ₹131.55, while the Sensex had gained 0.90% to 76,390. Trading was active, with a cumulative 4.7 million shares changing hands on the BSE and NSE.

The move followed a weak stretch: the stock had touched a one-year low of ₹110 the previous week and was still 41% below its 52-week high of ₹231.15, reached in February. That backdrop helps explain why a sharp earnings improvement drew attention, but it also underlines the stock’s recent volatility. A strong session alone does not erase the decline or confirm a sustained change in direction.

Technical levels are reference points, not guarantees

Harish Jujarey, AVP and head of technical research at Prithvi Finmart, said the stock had built a base around ₹115, with its weekly RSI finding support near 30. He identified ₹138 as immediate resistance, aligning with the weekly 200-day simple moving average. In his view, a sustained move above that level could open a path towards ₹150, while ₹115 remains a key support zone.

Those levels offer a framework for tracking price action, not a forecast of what the stock will do. For investors assessing the business, the more consequential test is whether later quarters can maintain sales momentum and positive operating earnings. The reported figures do not, by themselves, establish how persistent the improvement will be.

Key Highlights

• Consolidated Q2 net profit was ₹13.70 crore, versus a loss of ₹6.21 crore a year earlier.
• Revenue from operations rose 66% year on year to ₹203.03 crore.
• Revenue increased 28% from the preceding quarter’s ₹158.42 crore.
• EBITDA turned positive at ₹44.98 crore, compared with a loss of ₹15.95 crore in the year-earlier quarter.
• The stock climbed as much as 17.65%, but remained 41% below its 52-week high.

Investor Note: Kitex Garments’ results mark a substantial quarterly improvement, but the share-price surge and technical levels should be weighed against the stock’s recent volatility. Investors may want to monitor whether revenue growth and positive EBITDA persist before treating one quarter as evidence of a lasting earnings recovery.