Keltech Energies Q4 FY26 Results (BSE: 506528)
Signal: Steady quarter
The read
Underlying operating profit (pre-exceptional) declined 10% YoY as severe gross margin compression in explosives (raw material cost spike) offset volume growth. Reported net profit rose 23% entirely due to exceptional one-time duty refund. Cash flows improved strongly, but debt surged from heavy capex—margin recovery and debt trajectory are the key watch items.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹143.13 Cr | 2.29% | 11.67% |
| EBIT | ₹9.65 Cr | -5.25% | |
| Net profit | ₹8.44 Cr | 22.69% | |
| EPS | ₹84.44 | 22.69% | |
| EBIT margin | 8.22% |
P&L walk
Revenue grew modestly (+2.3% YoY) but gross margin collapsed 383bps to 29.80% on sharp rise in raw material costs (to 70.20% of revenue). EBITDA margin slipped 28bps to 8.22%. Exceptional income of ₹317.76 lakhs from duty refund boosted PBT; pre-exceptional profit fell 10%.
Segments
Explosives segment PBIT dropped 44% YoY (₹575.89 lakh vs ₹1,032.39 lakh) despite 7.8% revenue growth—margin compression the clear drag. Perlite turned around from a loss of ₹279.20 lakh to a profit of ₹152.00 lakh, preventing a steeper consolidated decline.
Key positives
- Perlite segment turnaround: from loss of ₹279.20 lakh to profit of ₹152.00 lakh YoY
- Strong revenue growth in both segments (Explosives +7.8%, Perlite +21.8%)
- Exceptional income of ₹317.76 lakh from favourable CESTAT order on Anti-Dumping Duty refund
- Cash flow from operations swung to ₹4,850.02 lakh from –₹1,757.03 lakh in FY25
Key concerns
- Gross margin contracted 383bps YoY to 29.80%, raw material cost rose to 70.20% of revenue from 66.37%
- Explosives segment PBIT halved (₹575.89 lakh vs ₹1,032.39 lakh) despite revenue growth
- Pre-exceptional profit declined ~10% YoY
- Net debt skyrocketed from ₹1,244.38 lakh to ₹5,222.00 lakh as heavy capex was debt-funded
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