KEN - Ken Enter.

📊 NSE: KEN 🏢 Textiles - Products 📅 Last Updated: 12/14/2025 8:52

💰 Financial Performance

Revenue Growth by Segment

Total revenue from operations grew 20.04% YoY to INR 482.80 Cr in FY25 from INR 402.21 Cr in FY24. For the half-year ended September 30, 2025, revenue reached INR 274.10 Cr, representing a 27.3% growth compared to INR 215.31 Cr in the same period of the previous year.

Geographic Revenue Split

Not explicitly disclosed by region, but the company received the 'Maharashtra State Export Award' (Gold category) for significant export contributions, indicating a substantial portion of revenue is derived from international markets.

Profitability Margins

Net profit margin (PAT Margin) improved from 2.22% in FY24 to 2.55% in FY25. For H1 FY26, PAT stood at INR 5.55 Cr compared to INR 5.12 Cr in H1 FY25, a growth of 8.28%.

EBITDA Margin

EBITDA margin was 4.87% in FY25 (INR 23.52 Cr), a slight decrease from 4.91% in FY24. H1 FY26 EBITDA margin was calculated at 1.59% (INR 4.37 Cr), showing an improvement from 0.90% in H1 FY25.

Capital Expenditure

The company utilized INR 3.77 Cr for renovation and INR 6.25 Cr for acquisitions from its IPO proceeds. Total IPO funds raised were INR 58.27 Cr in February 2025.

Credit Rating & Borrowing

The company is shifting from high-cost trade credit to lower-cost supply chain financing, aiming to reduce interest costs to 2–2.5% of revenue. Finance costs for H1 FY26 were INR 1.83 Cr.

⚙️ Operational Drivers

Raw Materials

Not specifically named, but 'Cost of Material Consumed' is the primary expense, totaling INR 268.43 Cr in H1 FY26.

Capacity Expansion

Planned expenditure of INR 3.77 Cr for renovation of facilities to enhance operational capabilities. Current installed capacity metrics are not disclosed.

Raw Material Costs

Cost of materials consumed represents a significant portion of total expenses, which were INR 274.10 Cr in H1 FY26.

Manufacturing Efficiency

ROCE dropped from 51.52% in FY24 to 29.66% in FY25, likely due to the significant increase in capital employed post-IPO (Net Worth grew from INR 44.85 Cr to INR 111.60 Cr).

📈 Strategic Growth

Expected Growth Rate

15.17%

Growth Strategy

Growth will be driven by the utilization of INR 25.00 Cr in IPO proceeds for working capital requirements, INR 3.77 Cr for facility renovation, and INR 6.25 Cr for strategic acquisitions in India and abroad to expand market reach.

Products & Services

Textile products (implied by the Ichalkaranji location and Maharashtra State Export Award for significant export contributions).

Brand Portfolio

Ken Enterprises Limited.

Market Expansion

The company is targeting acquisitions both in India and abroad to expand its geographic footprint and product portfolio.

🌍 External Factors

Industry Trends

The industry is evolving towards lower-cost supply chain financing and increased compliance with environmental and labor regulations. Ken is positioning itself by improving its credit rating and net worth post-IPO.

Competitive Landscape

The company operates in the medium-scale textile/export sector in Maharashtra, competing with other regional and national textile manufacturers.

Competitive Moat

The company's moat is built on its recognized export excellence (Gold category award) and its ability to maintain a low-leverage capital structure in a capital-intensive industry.

Macro Economic Sensitivity

Sensitive to interest rate fluctuations as a capital-intensive business; the company is actively working to lower its interest cost to 2-2.5% of revenue.

Geopolitical Risks

Potential trade barriers or changes in export regulations could impact the company's significant export business, recognized by the Maharashtra State Export Award.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to labor, environmental, and tax laws. The company uses internal systems to ensure minimal disruption during policy shifts.

Environmental Compliance

The company identifies evolving environmental laws as a challenge and maintains a compliance team to ensure alignment with new rules.

Taxation Policy Impact

Effective tax expense for H1 FY26 was INR 1.96 Cr on a PBT of INR 7.51 Cr (approx. 26%).

Legal Contingencies

The company has no pending litigations that would impact its financial position, except for contingent liabilities reported in Note 27 of the standalone financial statements.