1. At a Glance
Kamadgiri Fashion’s FY26 numbers tell a more nuanced story than the market cap of ₹57.5 crore suggests.
Revenue declined to ₹157.77 crore from ₹177.98 crore in FY25, down 11.4%, yet PAT rose sharply to ₹3.08 crore versus ₹1.20 crore last year, a 156% jump. Debt has fallen to ₹15 crore from ₹27 crore in FY25 and ₹66 crore in FY23.
That combination — falling sales but rising profits and collapsing leverage — deserves inspection.
Q4 FY26 itself showed:
- Revenue: ₹44.53 crore vs ₹42.52 crore YoY (+4.7%)
- PAT: ₹2.10 crore vs loss of ₹0.20 crore YoY
- EPS: ₹3.58 vs negative ₹0.34 YoY
- OPM: 4.51%
The company reported FY26 ROE of 8.22%, ROCE 8.09%, debt/equity 0.38 and book value ₹66.9.
At CMP ₹98, stock trades at 18.68x earnings and 1.46x book.
That is not distressed pricing.
That is cautious turnaround pricing.
Question is simple:
Is this a recovery story, or only a cleaner balance sheet on a shrinking revenue base?
2. Introduction
Kamadgiri operates in integrated textiles through fabrics, apparel manufacturing, uniforms and branded fabric offerings.
But FY26 was less about expansion and more about repair.
The most notable movement came from the balance sheet.
Borrowings:
- FY23: ₹66 crore
- FY24: ₹42 crore
- FY25: ₹27 crore
- FY26: ₹15 crore
That is 77% reduction from FY23.
Interest cost also fell:
- FY25: ₹4 crore
- FY26: ₹2 crore
That alone partly explains why profit improved despite lower sales.
Meanwhile annual sales have fallen:
- FY24: ₹218 crore
- FY25: ₹178 crore
- FY26: ₹158 crore
That trend cannot be ignored.
This is not growth-led improvement.
This is efficiency-led improvement.
Whether that becomes durable rerating material depends on whether revenue stabilizes.
3. Business Model – What Do They Actually Do?
Segments:
Fabrics
Suiting and shirting manufacturing.
Garments
Premium shirts, trousers and contract manufacturing.
Institutional and Uniforms
Potentially sticky business segment.
Brands
- True Value
- True Linen
- Incasso
- Bangkok Fashions
Capacity utilisation:
- Garmenting: 51%
- Weaving: 84%
Garment utilisation remains underused.
Potential operating leverage exists if volumes recover.
Revenue mix:
- Products 91%
- Services 6%
- Other operating revenue 3%
This is
