In the first quarter of FY27, KPR Mill posted a revenue of ₹19.4 billion, up 9.6% from the same period last year. The textile arm grew modestly by 1%, while the sugar business delivered a 21% jump, showing the company's diversified profile.
Gross margin improved by 480 basis points year‑on‑year to 40.7%, reflecting better pricing and cost control. EBITDA margin also rose, settling at 19.4% – an increase of 180 basis points over the prior year.
Management expects revenue to keep pace at around 13% annually, driven by ramp‑up in capacity and growing demand in the garment segment. Higher‑margin branded apparel expansion is also set to lift earnings.
The board has green‑lit a ₹12.25 billion investment to modernise the textile value chain. New plants worth ₹45 million will open in Odisha and ₹2.5 million in Coimbatore, aiming to boost output and efficiency.
The current share price already reflects moderate growth, leaving limited upside. We keep a neutral rating with a target price of ₹1,200, valuing the firm at 22 times FY28E EBITDA.
Key risks include reliance on export markets, cyclical demand in apparel, and stiff global competition. Investors should monitor these factors closely.