Kewal Kiran Clothing Ltd. — Call Transcript 2026

May 16, 2026

KKCL KEMALKIRAN CLOTHING LIMITED

KEWAL KIRAN CLOTHING LIMITED

Registered & Corporate Office: - Kewal Kiran Estate, 460/7, I.B. Patel Road, Goregaon (E), Mumbai: 400 063

Tel No. +91 22 26814400 Fax No. +91 22 26814410

CIN No. L18101MH1992PLC065136 website: www.kewalkiran.com

Date: May 16, 2026

To,

National Stock Exchange of India Limited Exchange Plaza, Plot No. C/1, G Block, Bandra Kurla Complex, Bandra(East), Mumbai-400051 NSE Code - KKCL	BSE (Bombay Stock Exchange) Limited "Phiroze Jeejeebhoy Tower", Dalal Street, Mumbai-400001 BSE Code – 532732

Dear Sir/Madam:

Sub: Transcript of the conference call on Q4 & FY26 held on Monday, May 11, 2026.

In continuation to our letter dated May 04, 2026 and pursuant to the applicable regulations of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, please be informed that the Company had convened and participated in the conference/analyst call, details of which is as follows:

Date & Time of Meeting / Call	Investor / Analyst / Event	Type of Meeting / Call
May 11, 2026 – 2.00 pm	Earnings Conference Call for the Quarter Ended March 31, 2026 - All Investors / General Public / Analyst	Virtual - Group Conference Call

We now enclose herewith the transcript for the said conference call. The same is also available on the Company's website at

https://www.kewalkiran.com/investors.php#Press%20Release%20/%20Conference%20Call%20Recording%20&%20Transcript

Kindly take the same on record.

Thanking you.

Yours Truly

For Kewal Kiran Clothing Limited

Abhijit

Bhalchandra

Warange

Digitally signed by Abhijit

Bhalchandra Warange

Date: 2026.05.16 11:44:27

+05'00'

Abhijit B. Warange

President – Legal & Company Secretary

Encl.: a/a

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KKCL

KEWAL KIRAN CLOTHING LIMITED

"Kewal Kiran Clothing Limited Q4 & FY'26 Earnings Conference Call"

May 11, 2026

Disclaimer: E&OE - Some portion of the concall audio spoken in language other than English has been translated in English language in this transcript for ease of reading. Further, in case of discrepancy, the audio recordings uploaded on the website of the Company will prevail.

KKCL

KEWAL KIRAN CLOTHING LIMITED

CHOROLOCLLE

MANAGEMENT: MR. HEMANT JAIN – JOINT MANAGING DIRECTOR, KEWAL KIRAN CLOTHING LIMITED
MR. PANKAJ JAIN – PRESIDENT (RETAIL), KEWAL KIRAN CLOTHING LIMITED

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KKCE

Kewal Kiran Clothing Limited

May 11, 2026

Moderator:

Ladies and gentlemen, good day and welcome to the Kewal Kiran Clothing Ltd Q4 FY26 Earnings Conference Call.

As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes.

Before we begin, a brief disclaimer:

The Presentation which Kewal Kiran Clothing Ltd has uploaded on the Stock Exchange and their website, including the discussions during this call contains or may contain certain forward-looking statements concerning Kewal Kiran Clothing Ltd business prospects and profitability which are subject to several risks and uncertainties and the actual result could materially differ from those in such forward-looking statements.

Should you need assistance during the conference call, please signal an operator by pressing “*” and then “0” on your touchtone phone.

I now hand the conference over to Mr. Hemant Jain – Joint MD, Kewal Kiran Clothing. Thank you and over to you, sir.

Hemant Jain:

Good afternoon, everyone and thank you for taking the time to join us today. Welcome to Kewal Kiran Clothing Ltd Q4 and FY26 Earnings Conference Call.

I am joined by Mr. Pankaj Jain – President (Retail) and Marathon Capital, our Investor Relations Advisor.

We are pleased to report a strong close to FY26 with Q4 marking yet another quarter of double-digit sales growth and taking full-year growth of 20.9%. This performance is well ahead of the average growth rate envisaged in ‘Vision 2028’ and validates our brand-wide differentiated strategy.

Let me walk you through some of the key highlights for the quarters and financial year:

Consolidated revenue for Q4 FY26 stood at INR 325 crores, up by 12.4% year-on-year and for FY26 stood at INR 1,212 crores, led by strong growth in both volumes and value. Apparel volume growth on a consolidated basis saw an encouraging growth of 16% year-on-year driven by strong design capabilities and sustained consumer demand for our products.

Coming to our operational performance:

Our performance reflects the scalability, resilience and execution strength of our operating model driven by:

• Disciplined execution of focused growth strategies across brands and channels.
• Strong consumer traction led by our fashion-forward design-led product portfolio,

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KKCE
New Zealand Institute of Technology

Kewal Kiran Clothing Limited

May 11, 2026

• Agility in navigating a competitive landscape while sustaining market share and profitability.

Some notable operational highlights across our brand:

Killer:

Continued its sustained growth journey with double-digit sales growth in FY26 and now operates 457 EBOs. The SSG for Q4 FY26 is 6.8% and for the year FY26 is 9.4%.

Kraus:

• Delivered robust sales performance and growth in EBITDA margins at par with overall KKCL margin profile.
• On track to evolve a significant player in the Women’s Casualwear market.
• Started getting good traction in the MBOs, export market and expanded EBOs network to 28. Focused now towards further improvement in the working capital cycle.

Junior Killer:

• Posted high sales growth in FY26 validating our focused entry into Kidswear.
• Backed by disciplined execution, the brand is gaining strong traction.

Lawman:

With the strategic repositioning towards D2C model, the brand has started showing positive traction and consumer acceptance resulting in robust sales growth in FY26 and now operates 90 EBOs.

Integriti:

Recorded notable growth in both Q4 and FY26 year-on-year driven by renewed focus and targeted brand building efforts.

On the profitability front:

EBITDA came in at INR 238 crores for FY26 and INR 62 crores for Q4 FY26, reflecting a staggering 25% and 18% growth year-on-year respectively.

EBITDA margin expanded upward of 19% for both Quarter and FY26 driven by efficient operational performance surpassing our guided range of 17% to 18%. Our execution-led operational discipline enabled us to grow at scale while protecting profitability resulting in a strong EBITDA margin of 19.6% for FY26.

On the channel of sales front, our EBO, large format stores, MBO and online channel reported healthy double-digit growth in FY26 validating the effectiveness of our go-to-market strategy.

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KKCE
Kewal Kiran Clothing Limited
May 11, 2026

Revenue grew 16% year-on-year in retail and 8% year-on-year in non-retail in Q4 FY26. For FY26, retail grew 24% and non-retail grew 17% year-on-year underscoring consistent broad-based momentum across formats.

In line with our strategy to expand our brand footprint, we added net 57 EBOs in FY26, taking our total to 666 stores as on March 31, 2026.

Coming to our outlook and strategy:

The robust performance in FY26, particularly the contribution from Kraus casual, gave us the confidence to raise our growth and ambitions backed by an inorganic acquisition strategy. We continue to achieve the Vision 2028. However, we aim to further accelerate the growth target from 15% CAGR to 20% CAGR in the next three years and it is expected to be meaningfully supported by a well-defined acquisition framework.

While acquisitions may not materialize uniformly each year, our three-year strategic roadmap is designed to deliver this accelerated growth trajectory. Backed by our core principles of stability, sustainability and scalability, we remain confident in our ability to achieve these ambition.

With that, I would now like to open the floor for questions.

Moderator: You are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Our first question comes from Shubham Jain from Counter Cyclical. Please go ahead.

Shubham Jain: Hello. Good afternoon, sir. Thanks for the opportunity. I just have two quick questions. Firstly, on the monetization side of our land in Goregaon, any update on that?

Pankaj Jain: We are still under negotiations for that.

Subham Jain: Okay. And what is your expectations? When can we complete that part?

Pankaj Jain: As of now, the decision is still standstill. We can update this decision on a quarter-to-quarter basis on every con-call

Subham Jain: Okay, sir. Secondly, sir, on the acquisition that we had done in Kraus, 50% stake, are we planning to increase that stake going forward?

Pankaj Jain: There is nothing changed for the first five years period. After that, there can be some.

Subham Jain: And any other acquisitions that you have been planning in other segments in the form of inorganic growth?

Pankaj Jain: We are open for opportunities, and we are also looking for some.

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KKCL
New York City LABORATORIES
Kewal Kiran Clothing Limited
May 11, 2026

Subham Jain:
Okay, sir. Lastly, you have raised your guidance from 10%-15% to (+20%). Where are you particularly expecting that growth to come from?

Pankaj Jain:
So, what I am trying to say is that organically, our growth, we still say that it should be around 15%-18%. The additional vacuum of close to 5% shall be covered by an inorganic acquisition.

Subham Jain:
Okay, sir. Thank you. I will get back into the queue.

Moderator:
The next question comes from the line of Rushabh Shah from Buglerock PMS. Please go ahead.

Rushabh Shah:
Thanks for the opportunity, sir. Sir, a few calls back, you have said that you see significant export potential for our flagship brands like Killer, Kraus, especially in markets with a strong youth. So, I just wanted to have to look out for those markets. Which are those markets? What is the export potential and any internal targets you have to reach in exports for the next five years?

Pankaj Jain:
For KKCL, the exports do not actually contribute significantly. However, most of the countries which they export to, including Kraus, is Middle East and Saudi. Okay, you have known the case scenario that over the last three months it has been disturbed. And that's the reason exports have been a little bit disturbed. Going to the article, which has been said right now that all the channels have been growing. And we think that the exports are going to remain constant or may degrew for the next year.

Rushabh Shah:
Okay. So, my second question is, KKCL has also launched the Athleisure segment. So, how has that segment grown for us?

Pankaj Jain:
It's a part of the entire brand, okay. Some categories move upward; some categories move. We are not treating it as a separate format.

Rushabh Shah:
Yes. So, sir, what do you think about this segment? And this segment going ahead in the next, let's say, four to five years, can be as big as the jeans segment that we have?

Pankaj Jain:
Too early to speak about it. As I said that we are treating it as a category only or as one of the category sales for us. We are not treating it as separate or a sub-brand.

Rushabh Shah:
Yes. As I said, I wanted to know more from your vision perspective. And this question is not for just, let's say, two to three years, but a long-term thought process. The question is that newer brands or categories like Killer Junior, Kraus, and also the older ones like Lawman, Integriti. Do you think that these can become as big as the Killer brand? And like any steps we have taken, we can see them as a huge brand like Killer Jeans over the coming years?

Pankaj Jain:
Every brand was launched with a separate mindset, separate price bracket, and a separate TG. So, definitely, we had some problems for some of the brands. We have re-strategized our strategy and we have started seeing attraction towards it. And I definitely feel that all the brands have that potential to go where Killer is as of today.

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KKCE
Kewal Kiran Clothing Limited
May 11, 2026

Rushabh Shah: Fine, sir. Thank you. I will get back to in the queue.

Moderator: Thank you. Your next question comes from the line of Arpan Rathod from Insight Advisory. Please go ahead.

Arpan Rathod: Good afternoon. Congratulations on a great set of numbers. And more encouraging is the revision and guidance upward, even considering the current market’s volatility. So, my first question emanates from that only. What is the impact of war on us? Obviously, we are not too much in exports, but the raw material prices have increased substantially across commodities. So, what is the impact? Are we able to pass on in terms of revision in price or are we looking at revision in channel pricing?

Hemant Jain: It is like that as you have said that there is a situation of war, and no one knows how long this war is going to continue. What would happen, what would the situation be? How the prices of oil will behave or how the cotton prices will behave. As of now our endeavor was to not lose the revenue and we should not reduce our market share. So, it could happen that we may get hit by few percentages in the profit. Or some percentage we will pass on to the consumer. As of now, we are not impacted much. What is going to happen going forward nobody knows. So, depending on how the day-to-day situation will evolve, we will take the decision based on that. But yes, in future there is a possibility that certain percentage will be borne by the company and certain percentage we will pass on to the customers. As of now our theory is that we don’t want to lose revenue. Our major focus is revenue. Even if we have to take a hit of 1% or 2%, the company is ready to take that kind of hit.

Arpan Rathod: That’s good to hear. Sir, any color on the working capital?

Hemant Jain: I just should not comment about the other companies but normally, what happens is that our company is cash rich. It is possible that we get some advantages or we can get some benefit on the value and volume. We won’t get the same impact as other companies. But nobody knows what the situation is going to be. It is very clear that we will see day-to-day and then take a decision. But there should not be a business loss.

Moderator: Yes, sir, the line for the current participant has dropped from the queue. We will move on to the next question. The next question comes from the line of Lakshmi Narayanan KG from Tunga Investments. Please go ahead.

Lakshmi Narayanan KG: Thank you. Good results, especially on the working capital front. We have done pretty well. And I think we have sustained the operating margins also or we can enhance it to a couple of basis points. So, a few questions. From a sales of Kraus brand, how much that actually contributed to the growth for the full year? I think this full year is the first financial year with Kraus both in the baseline as well as towards the end of FY26. That is my first question.

Pankaj Jain: Sir, growth for Kraus has been upwards of more than 20%.

Lakshmi Narayanan KG: How much Kraus contribute now? Is it available compared to last year to this year?

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KKCE
Kewal Kiran Clothing Limited
May 11, 2026

Pankaj Jain:
We generally give the numbers on a consol basis scenario. We don't give brand-wise numbers.

Lakshmi Narayanan KG:
Got it. Due to GST, there have been some pricing revisions. Is there any stock level loss we have to take or is that entire pre-GST stock out of the system? Can you tell me how that actually happened?

Pankaj Jain:
After the GST changes which happened on 22nd of September, for the 3rd Quarter, the company had to pass on the entire GST benefit to the consumer. Going forward or maybe for FY26, we feel that the impact of GST is neutral for the company. For some brands, it is more and for some brands, it is less.

Lakshmi Narayanan KG:
Got it. And are there any price increases we have taken in the last few months?

Hemant Jain:
We have not taken any price hike yet. We operate at the same prices. The product mix changes a little bit. That is up to season-to-season, of course. But we have not done any price hike. So, we have a room in future if we have to hike the prices, we have that room.

Lakshmi Narayanan KG:
And the e-commerce channel, is it growing ahead of your growth or is it in line with your company's growth?

Pankaj Jain:
It is in line with the company.

Lakshmi Narayanan KG:
And in terms of full price sales, can you just give a sense of how much it was for the Men's Wear and Women's Wear because usually they are around 65%.

Pankaj Jain:
Full price sales was close to around 60%.

Lakshmi Narayanan KG e:
And when you started the year and ended the year, what are the areas which actually did better than what you anticipated for FY26? And what are the areas which did not do well as per your expectations for FY26?

Hemant Jain:
Our major focus is on the West. We have already done well in the East. So, now we are focusing on the West, and we are having a very good result. Yes, the kind of focus we put on the North, we did not get the benefit which we wanted from the North. But yes, we are majorly focused on the West and South this year also. See, what happens that it bound to go up and down. You cannot achieve 100% of your expectation. But if you are not here, you can do it anywhere. At the end of the day, we have to achieve that business target. The major focus is that no matter where you get the business, you should first complete the business target. Yes, we are focusing on a territory. But in West we got a good benefit. We did not get as much benefit as we expected in the North.

Lakshmi Narayanan KG:
In the other segment, which includes innerwear, perfume, glasses and so many other things, that has actually also grown ahead of our overall growth. Can you just explain as to within that, which segment is growing faster in others?

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KKCE
Kewal Kiran Clothing Limited
May 11, 2026

Hemant Jain:

Our focus is on the Apparel business. All the accessories business is impulse buying. Our major focus is on the Apparel side like jeans, shirt, trousers, T-shirt, winterwear, jackets, sweatshirts, sweaters. So, our major focus is on that. We are not majorly focusing on the innerwear or some socks or some of the accessory’s business. Yes, we do that. Because the brand is all about the lifestyle, we have to keep all these things. But our major focus is on the Apparel.

Lakshmi Narayanan KG:

Thank you, sir and I will come back in queue.

Moderator:

Thank you. The next question comes from Manoj Thakur from Motilal Oswal. Please go ahead.

Manoj Thakur:

Good afternoon and congratulations on a great set of numbers, both on the operational front and as well as on the revenue growth. So, I just had a couple of questions on my side. So, regarding our development and progression of Kraus, on the margin front, how we were about one year back and how we are doing now. What has been our focus in creating the additional EBITDA margin that we can get from Kraus?

Hemant Jain:

What happens is, if you look at it drastically, there has not been a lot of change in profit because as the turnover of your company increases, your fixed cost comes down. That can be one benefit and some-percentage for the temporary basis that a benefit of GST has been passed on. So, it’s all mixed. We should be happy. You guys should be more happy that a good profit is coming it’s better.

Manoj Thakur:

Yes. Great set of numbers, as I said. Also, on a store guidance level, what are we targeting for next couple of quarters and full year?

Pankaj Jain:

Full year should be around net around 50 to 70 odd stores.

Manoj Thakur:

These are all majorly EBOs?

Pankaj Jain:

All EBOs.

Manoj Thakur:

Yes. Okay, sir. I will just come back in the queue for further questions.

Moderator:

Sure. Thank you. The next question comes from the line of Arpan Rathod from Insight Advisory. Please go ahead.

Arpan Rathod:

Thank you for taking my call. So, continuing from the conversation wherein I dropped out, can you give some sense on the working capital?

Pankaj Jain:

Can you be a little louder and clearer?

Arpan Rathod:

Okay. My question is regarding the working capital. What are the short-term and long-term working capital days which we are looking at?

Pankaj Jain:

Okay. The working capital should stay anywhere between a limit of 130 to 140 odd days.

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KKCL
Kewal Kiran Clothing Limited
May 11, 2026

Arpan Rathod: And this is same for Kraus and the company on a standalone basis?

Pankaj Jain: This is the overall limit structure. Kraus, it will be a little higher.

Arpan Rathod: Any specific reason?

Pankaj Jain: Okay. Most of it, business is skewed towards LFS and Retail. That’s the reason.

Hemant Jain: Currently, we are the manufacturing company. We are not the vendor-based company. So, you have to think that what we manufacture there is a WIP. When we are manufacturing, our 50 days to 60 days go in manufacturing. You should do comparison for both, one is manufacturing days and selling days. If you combine both then it will surely come to 130-140 odd days.

Arpan Rathod: My second question is link to that only Kraus, currently, everything is outsourced in terms of manufacturing, correct, right?

Hemant Jain: Yes.

Arpan Rathod: And considering that we have on a standalone basis enough capacities wherein we can actually absorb that manufacturing also, any plans there?

Pankaj Jain: That’s not the plan for the immediate future also. Currently, KKCL is only operating at 100% efficiency structure.

Arpan Rathod: Okay. So, any CAPEX, considering that the growth targets have been revised upwards, obviously, with acquisition, but then also on a standalone basis, you will need some capacity expansions.

Pankaj Jain: So, not much. As we said close to around INR 30 crores to INR 35 crores is the requirement for CAPEX that includes the frontend as well as the backend on a year-on-year basis.

Arpan Rathod: Sure. Secondly, in the opening remarks, you made a pointed remark on growth alongside acquisitions. So, any plan which has been drawn up, I know it’s very difficult to point at any specific company currently, but which segment or like we did Kraus. So, which would be the other segment which we will be looking at? Any broad strategies around that? Obviously, the name, value, everything can’t be discussed currently, but broad parameters just for our understanding.

Pankaj Jain: So, more importantly, we are right now open for all the company structure. We just decide whether we can add to the synergies and we look it from an ROCE perspective, whether we get that synergy and ROCE can deliver. We are also open for our competing categories also, as well as premium, as well as the value segment. We are even open for any gender specific.

Arpan Rathod: So, that’s it from my side. Thank you and all the best.

Pankaj Jain: Thank you.

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KKCE
Kewal Kiran Clothing Limited
May 11, 2026

Moderator: Thank you. The next question comes from the line of Sahil Doshi from Thinqwise. Please go ahead.

Sahil Doshi: Hello. Good afternoon, sir. Good afternoon. Just one on the Integriti bit, which we said it’s done exceedingly well this quarter. And so, could you just talk a little more on Integriti and for FY27 with the pivot in the brand strategy, can we start expecting better numbers on that?

Pankaj Jain: Yep. We have changed the price strategy for that and we have started seeing interesting results. We have also started gaining counters on the multi-brand as well as chain store formats. We feel the growth will be in line with what we are talking about the company.

Sahil Doshi: Okay. So, meaning the transition in terms of modern trade and number of counters, are we complete in terms of the entire plan?

Pankaj Jain: No. There is huge vacuum left.

Sahil Doshi: Okay. Understood. So, additionally, basically, these all new pivots from Lawman and Integriti should start contributing higher—

Pankaj Jain; From 1st Quarter of this year itself.

Sahil Doshi: So, if I had to just correlate, if I see standalone which is your traditional business, say this quarter maybe has been 8% kind of growth and for full year is 13%. So, directionally, do we think that this should start picking up at a much higher level?

Pankaj Jain: Should be in upward of 15%.

Sahil Doshi: Understood. Sure. And just a follow on in terms of brand, if I see the segment mix, the bottom and the denim, which typically have higher margins, this quarter, we have seen an improvement in terms of the share of bottoms and denims. But if I see in the standalone, at least our gross margins are not showing a similar momentum. So, is there some strategic call here or just wanted to get a sense on this?

Pankaj Jain: The mix would have also changed because of the change in the price brackets for some of the brands, right.

Sahil Doshi: Okay. Because I think we used to say 41, 42% gross margin should be normal on an annualized basis. Is that the band which we should--.

Pankaj Jain: But going forward also, the gross margin should stay anywhere between 41 to 43 range.

Sahil Doshi: And just lastly, we have spoken about a few pivots, and you have made a presentation on that. So, if you can talk about some of these pivots and where are we in that journey and anything--

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KKCE
Kewal Kiran Clothing Limited
May 11, 2026

Pankaj Jain:
Actually, there were too many things. We also had the organic brands which were looking at re-strategizing, which we feel we have been able to do. And that's the reason we have slowed down our pivots in the last quarter. The pivots would take a scale from this quarter.

Sahil Doshi:
Any pivots in particular, which will be the focus for ‘2??

Pankaj Jain:
Too early to answer that, Sahil. Maybe a Quarter 2 concall or a Quarter 3 concall will be able to elaborate on it.

Sahil Doshi:
Sure. Understood. Perfect. That’s it from my end and great work on the balance sheet again. Thank you.

Moderator:
Thank you. The next question comes from the line of Manoj Thakur from Motilal Oswal. Please go ahead.

Manoj Thakur:
Hi, sir. I am rejoining again. So, one clarification on the movement of other income that we have seen in FY26 Q4. Can you put some light on that?

Pankaj Jain:
The other income has gone down. You are talking about the quarter or the full financial year?

Manoj Thakur:
This quarter.

Pankaj Jain:
So, it’s generally mark-to-market. That’s the reason it has gone down.

Manoj Thakur:
So, majorly it is that. What would be the quantum of the mark-to-market?

Pankaj Jain:
So, if you look at the annualized number our other income should stay somewhere between INR 30 crores to INR 35 crores.

Manoj Thakur:
Okay. Got it. And also, one more question coming related to Kraus. Are there any plans to do a further acquisition of the remaining shares?

Pankaj Jain:
Not for the first five years.

Manoj Thakur:
Okay. And in the starting we have said then we would do one more inorganic thing. Would that be a 100% full buyout or how would be the structure or we can get the details later on?

Pankaj Jain:
Okay. We will update you about the companies and after the buyout actually happens.

Hemant Jain:
So, it is too early to say right now. It is not possible to say anything because it all depends on which company we are going to buy out, what deal we are going to do, and at what value we are going to buy. I cannot say anything right now because if the deal does not happen then there is no point talking about it.

Manoj Thakur:
Yes. I agreed. Sure. So, thank you. And that’s it for my side.

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KKCE
Kewal Kiran Clothing Limited
May 11, 2026

Moderator: Thank you. The next question comes from Arpan Rathod from Insight Advisory. Please go ahead.

Arpan Rathod: Sir, one question on the store addition target. How many company owned-company operated stores are we looking to add up in this year?

Pankaj Jain: We are looking at close to around 50 to 70 odd stores net to be added. Generally, we try that okay that the proportion stays close to around 15% as compared to 85% franchise stores. But however, if any good deal structure happens. I can update you on quarter-on-quarter basis.

Arpan Rathod: Sure. And the SSG numbers which we have started disclosing that’s a welcome move and this is for, would be for company owned stores only, right?

Pankaj Jain: For all the EBOs.

Arpan Rathod: Okay. Thank you.

Pankaj Jain: Thank you.

Moderator: Thank you. The next question comes from the line of Madhur Rathi from Counter Cyclical Investments. Please go ahead.

Madhur Rathi: Sir, firstly, sir, instead of paying dividends, sir, have you thought about doing a share buyback?

Hemant Jain: It’s a company policy. Yes, already the promoter has 74 point somepercentage. So, right now we are not thinking about the buyback. If there will be anything then we would let you know. It’s too early to say anything. And even we are not thinking on that.

Madhur Rathi: Sir, dividend is taxed at 36% and if you do buyback, then it will be taxed at 30%. So, Sir, there was a tax advantage, because of which I was asking and the shareholders to get the same amount of money, the government will get less money. Anyway, recently, in the last 2-3 years our working capital has exploded, especially receivables has gone up from about INR 170 crores to INR 320 crores in the last two 2 years. So, sir, is this expected to be a mean revert?

Pankaj Jain: We say that our working capital should stay somewhere between 130 to 140-odd days and it will stay in that limit only. The business has also expanded from the base as you are asking for.

Madhur Rathi: Understood, sir. Sir, so for this FY27, sir, what kind of top line are we looking at?

Hemant Jain: As we have stated in our Vision and what we have committed in the last three years that they will achieve INR 1500 crores, we are working on it and we will achieve it.

Pankaj Jain: As we said in this concall also, growth strategy organically stays somewhere between 15% to 18%. However, if we look at any inorganic growth, the growth for a 3-year period stays at 20%.

Madhur Rathi: Sir, CAGR.

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KKCL
Kewal Kiran Clothing Limited
May 11, 2026

Hemant Jain: CAGR, yes.

Madhur Rathi: Thank you very much, sir. Best of luck.

Hemant Jain: Looking at our performance over the last four to five years, including FY2022 through FY2026, we have grown by 18.6%, and we expect to maintain this trajectory going forward.

Madhur Rathi: Sure, sir. Thank you. Thank you very much.

Hemant Jain: Okay.

Moderator: Thank you. The next question comes from the line of Naveen Baid from Nuvama Asset Management. Please go ahead.

Naveen Baid: Thank you. Thank you for the opportunity. Just wanted to check what was the same-store sales growth for the quarter?

Pankaj Jain: I have already updated. The SSG growth for Quarter 4 was around 6.8%.

Naveen Baid: And what was the same-store sales growth for the full year?

Pankaj Jain: 9.4.

Moderator: Thank you. We have a follow-up question coming from the line of Madhur Rathi from Counter Cyclical Investments. Please go ahead.

Madhur Rathi: Sir, thank you for the opportunity once again. Sir, where do we see our average selling price moving over the next two to three years with Kraus under our acquisition? Do we expect the jeans, which is a higher ASP product, to scale from the current 50% level? So, how should we look at that?

Pankaj Jain: See, it was a subdued for denim as a category for last year. This year we have started seeing that again the momentum has increased for denim. If that starts happening, definitely we will be able to gain much market share. Most of the brands of KKCL, including Kraus, are known for denim wear.

Madhur Rathi: Right. So, going forward, either in terms of acquisition or in terms of organic growth, do we see the denim segment increasing as a category mix? So, what it is, 48% currently, can we expect it to move to 50% to 60% over maybe next two to three years?

Pankaj Jain: I would put it like this. Five years or seven years down the line, it was upwards of close to around 60%. We have intended and tried to derisk the entire category mix and come down to close to around 45 or 48. I think with the retail expansion, all the categories move in the similar percentage structure. So, I think it should stay in the similar mix of what it is as of today.

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KKCL
Kewal Kiran Clothing Limited
May 11, 2026

Madhur Rathi:
And sir, on the acquisitions, where do we see this acquisition in terms of price point? Will it be a higher ASP price point whenever that happens? Or would it be on the similar price point that we are currently present in?

Pankaj Jain:
For Kewal Kiran, everything is open. We are generally menswear-led, more casual driven, more denim centric. There is a lot of vacuum on other side aspects, which we feel that KKCL can still synergize and explore. That’s one. Secondly, if there is something coming on the denim aspect, we are not even disputing that we should not look at it. So, KKCL is open on the gender mix that includes ladies and kids. On the menswear also, I feel there is more room on the value segment as well as upper premium price bracket.

Madhur Rathi:
Right. So, nothing concrete as of now.

Pankaj Jain:
That’s true.

Madhur Rathi:
Okay, got it. Since we have a target of INR 1500 crores for Vision 2028 and have already crossed INR 1,200 crore in revenue, getting to INR 1,500 crore over the next two years would require only about 12%–13% annual growth, which we believe is quite manageable.

Pankaj Jain:
The vision statement was made a year before, where we had trajectory at close to around 15% to 18%. We have already delivered at 20%. We are changing our growth strategy for going forward from 15% to 20%, where we again say that that 15% will be organic, and that 20% will be from any inorganic buyout. So, but it will be in a three-year period. So, one year has already lapsed. Maybe in the next two years, but if you look at a three-year CAGR, I will be able to deliver it at 20%.

Madhur Rathi:
Understood, sir. And sir, our EBO, that is company owned or franchisee owned, franchisee operated?

Pankaj Jain:
The mix of both of them.

Madhur Rathi:
So, what is the breakup?

Pankaj Jain:
Right now, around 15% to 20% should be COCO and 80% should be franchisee owned, franchisee operated. But going forward, that mix can change.

Madhur Rathi:
Sir, and what is the ballpark CAPEX to set up one EBO in terms of CAPEX and working capital?

Pankaj Jain:
So, overall, as I said that the CAPEX required should be around INR 30 crores to INR 35 crores on the company level. That includes the frontend as well as COCO stores.

Madhur Rathi:
Understood, sir. And sir, what were the exports for the current year? And sir, are we doing white label exports or exporting under our own brand?

Pankaj Jain:
Okay. We are exporting most of our brands and it is under our brand name only.

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KKCL
Kewal Kiran Clothing Limited
May 11, 2026

Madhur Rathi: Okay. And sir, finally, sir, what is the rental as the percentage of top line?

Pankaj Jain: We have very less COCO stores as of now. So, removing that percentage will be very miniscule.

Madhur Rathi: Okay. Understood. Sir, so going forward, sir, the strategy is to do COCO or FOFO?

Pankaj Jain: I am again saying we have explored Tier-2 and Tier-3 well in advance, where we are able to grab the franchisee operation stores. Going forward it's a mixed perspective, which will be coming and then mix will keep on changing on a year-on-year basis.

Madhur Rathi: Sir, and between our e-commerce, multi-brand store, EBO, where is the margin highest and how much working capital is required in each of these channels?

Pankaj Jain: See, we generally give the bifurcation of retail and non-retail, where it includes EBO stores and LFS, where all other channels are part of non-retail. On the channel, the composite mix on the EBITDA margins is almost similar on both the levels and so is the working capital.

Madhur Rathi: Understood, sir. Thank you.

Moderator: Thank you. As there are no further questions from the participants, I now hand the conference over to Mr. Hemant Jain for closing comments.

Hemant Jain: Thank you once again for joining us today. We truly value your continued support and confidence in KKCL journey. Should you have any further questions, please feel free to reach out to our Investor Relations Team. Thank you and have a great day ahead. Thank you so much.

Moderator: Thank you. On behalf of Kewal Kiran Clothing Limited, that concludes this conference. Thank you everyone for joining us and you may now disconnect your line.