Kaycee Inds. Q4 FY26 Results (BSE: 504084)
Signal: Margin pressure
The read
Q4FY26 consolidated revenue grew 9.2% YoY, but gross margin collapsed 1058bps YoY as raw material costs surged to 66.8% of revenue—the steepest single-quarter margin compression in the series. EBITDA margin at 8.99% is the lowest since at least Q3FY24. PAT fell 60.5% YoY. Full-year PAT dropped 23.7% to ₹4.40 Cr, dragged by the H2 margin decline and widening associate losses. The company invested heavily in PPE (₹4.07 Cr additions) but the capacity is yet to translate into margin improvement.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹0.17 Cr | 9.2% | 16.3% |
| EBIT | ₹0.01 Cr | -64.6% | |
| Net profit | ₹0.01 Cr | -60.5% | |
| EPS | ₹2.24 | -60.5% | |
| EBIT margin | 8.99% |
P&L walk
Revenue grew 9.2% YoY but gross margin collapsed 1058bps YoY as raw material costs surged to 66.8% of revenue from 56.2%, crushing EBITDA margin to 8.99% (down 824bps). Employee costs and depreciation rose faster than revenue, amplifying the drop. PAT fell 60.5% as associate losses also widened.
Segments
Manufacturing segment EBIT fell 54.2% YoY to ₹0.97 Cr (margin 7.8% vs 19.2% in Q4FY25), dragging the group; trading segment EBIT fell 34.1% to ₹0.17 Cr (margin 4.0% vs 5.9%). Both segments saw margin compression, but manufacturing bore the brunt of the raw material cost hike.
Key positives
- Revenue grew 9.2% YoY to ₹16.8 Cr, the third consecutive quarter of YoY growth
- Full-year revenue up 12.9% to ₹60.05 Cr, highest in the series
- Substantial capex of ₹4.07 Cr in FY26 (PPE +139%), signaling capacity expansion
- Operating cash flow of ₹4.54 Cr vs PAT ₹4.40 Cr — cash conversion healthy
- Net debt remains negative (net cash ₹1.81 Cr) — balance sheet conservative
- Maintained dividend of ₹2 per share for FY26
- No exceptional items or auditor qualifications — clean audit report
Key concerns
- OPM crashed 824bps YoY to 8.99% — worst margin in the series since at least Q3FY24
- Raw material cost jumped to 66.8% of revenue from 56.2% — a 10.6pp surge eating into gross margin
- Employee costs grew 17.5% YoY, depreciation 42% YoY — both outpaced revenue growth
- Associate loss (Ultrafast Chargers) widened to ₹14.15 lakh vs ₹7.19 lakh loss in Q4FY25
- FY26 PAT fell 23.7% despite revenue growing 12.9% — margin erosion erased all gains
- Receivable days at 109 — elevated working capital
- Heavy capex with no near-term margin improvement visible
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