Kitex Garments Ltd expects a recovery in FY27 as export orders return to FY25 levels, supported by increased production at its Telangana facility and stronger demand from international markets.
Kitex Garments, Chairman and Managing Director, Sabu M Jacob, said in a letter to shareholders that the company is also strengthening its presence in Europe and the UK while expanding its position in the Indian market through its Little Star brand.
Telangana facility enters production
The company’s integrated manufacturing facility in Telangana moved from construction to production during FY26, with Phase I at the Warangal plant commencing operations in August 2025.
The project was conceived in 2021 with a planned investment of ₹3,550 crore. The company said the facility marks a structural shift in its manufacturing capacity and will strengthen its ability to cater to global demand.
Company expands global markets
“Coming out of global and geo-political challenges, Kitex Garments is poised for a bounce back in FY27 with export orders back to the level of FY25 and consequent enhancement in turnover and profits. We are also establishing Europe as an alternative to USA,” he said.
“With FTA now operative with Europe and UK, we expect our business to flourish more internationally. In addition, we have launched our international brand Little Star through online in the domestic market,” he said.
Warangal expansion to drive growth
The group plans to expand its operations in Warangal through subsidiary Kitex Apparel Parks Ltd, where commercial production has already started. Substantial production lines are expected to be added during FY27.
Jacob said the company expects a rebound in the textile industry after the impact of tariffs and geopolitical conflicts. “We are in an advantageous position due to the above-mentioned expansion which will be fully implemented in FY28,” he said.
Sitarampur project on track
Phase II of the project at Sitarampur, Hyderabad, is expected to begin construction during FY27 and be commissioned in FY29.
Together, the Telangana facilities represent a cumulative investment of ₹3,550 crore and will feature automated machinery, imported equipment and vertical integration from raw material procurement to finished goods. The group expects to reach a turnover of ₹7,000 crore once the Sitarampur facility achieves optimal capacity.
FY26 revenue reflects industry pressure
Kitex Garments’ revenue from operations stood at ₹592 crore in FY26, reflecting the weakness across the export-oriented textile sector.
“The industry is unlikely to see near term uncertainty ease quickly, but our capacity to respond to that uncertainty has grown meaningfully,” Jacob said.
The Board and management said the FY26 performance should be viewed against the backdrop of investments made in previous years, particularly the expansion of the manufacturing base.