KTL - Kalahridhaan

📊 NSE: KTL 🏢 Textiles - Products 📅 Last Updated: 12/14/2025 8:46

💰 Financial Performance

Revenue Growth by Segment

The company operates in a single business segment, 'TEXTILE', which recorded a revenue of INR 88.97 Cr for H1 FY25, representing a growth of 5.57% compared to INR 84.28 Cr in H1 FY24.

Geographic Revenue Split

Not disclosed in available documents; however, the company is headquartered in Ahmedabad, Gujarat.

Profitability Margins

Net Profit Margin significantly compressed to 1.1% in H1 FY25 (INR 0.98 Cr) from 5.7% in H1 FY24 (INR 4.83 Cr). This 79.8% decline in net profit is primarily driven by high material costs and finance charges.

EBITDA Margin

EBITDA margin stood at approximately 5.5% for H1 FY25 (calculated as PBT of INR 1.30 Cr + Finance Costs of INR 3.07 Cr + Depreciation of INR 0.53 Cr = INR 4.90 Cr EBITDA on INR 88.97 Cr revenue).

Capital Expenditure

The company undertook capital expenditure of INR 2.07 Cr for the purchase of fixed assets during the half-year ended September 30, 2024.

Credit Rating & Borrowing

Not disclosed in available documents; however, the company incurred finance costs of INR 3.07 Cr in H1 FY25, which is 3.45% of total revenue, indicating significant debt servicing requirements.

⚙️ Operational Drivers

Raw Materials

Textile raw materials (likely cotton, yarn, or fabric) accounted for INR 71.20 Cr in H1 FY25, representing 80.02% of total revenue from operations.

Raw Material Costs

Cost of materials consumed rose to INR 71.20 Cr in H1 FY25 from INR 64.68 Cr in H1 FY24, a 10.08% increase, which outpaced revenue growth and pressured margins.

📈 Strategic Growth

Expected Growth Rate

5-6%

Growth Strategy

The company is focusing on its core textile operations and recently transitioned from a private limited to a public limited company (Kalahridhaan Trendz Limited) to access capital markets. Growth is currently driven by volume increases in the textile segment, though profitability remains under pressure.

Products & Services

Textile products, including fabrics and apparel-related materials.

Brand Portfolio

Kalahridhaan Trendz.

🌍 External Factors

Industry Trends

The textile industry is currently facing margin pressure due to rising input costs and competitive pricing. KTL is positioned as a single-segment player, making it highly vulnerable to sector-specific downturns.

Competitive Landscape

Operates in the highly fragmented and competitive Indian textile and garmenting market.

Competitive Moat

The company does not demonstrate a strong cost or brand moat, as evidenced by the sharp decline in margins (from 5.7% to 1.1% PAT margin) when input costs rose.

Macro Economic Sensitivity

Highly sensitive to textile industry cycles and cotton/yarn price fluctuations in the Indian market.

⚖️ Regulatory & Governance

Industry Regulations

Subject to standard textile manufacturing regulations and SEBI (LODR) Regulations 2015 for listed entities.

Taxation Policy Impact

The effective tax rate for H1 FY25 was approximately 25.1% (INR 0.32 Cr tax on INR 1.30 Cr PBT).

Legal Contingencies

The Statutory Auditor, M/s. Piyush Kothari & Associates, resigned on January 10, 2025, which is a critical governance event that may signal internal reporting or compliance challenges.

⚠️ Risk Analysis

Key Uncertainties

The resignation of the statutory auditor shortly after the H1 FY25 results and the 79.8% year-on-year decline in net profit are the primary business uncertainties.