Kaya Ltd Q4 FY26 Results (NSE: KAYA)
Signal: Loss widened
The read
Q4FY26 is the 5th straight quarter of margin contraction (OPM at -23% vs -6% in Q2FY26, Q1FY26 +7%, Q4FY25 +3%), confirming a structural deterioration in profitability. Revenue growth (+2% YoY) is negligible and decelerating from +5.8% a year ago. The net loss of ₹27.77 Cr was partly non-cash (₹11.77 Cr impairment), but the core operating loss ex-impairment was still ₹16 Cr, worsening from ₹11.16 Cr last year. Going-concern is flagged by auditors with a negative net equity of ₹15,276 lakh; the company depends on promoter financial support. The full-year FY26 loss of ₹96.17 Cr is a dramatic reversal from the FY25 profit of ₹83.68 Cr (which benefited from discontinued operations gain).
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹55.8 Cr | 2.03% | -7.06% |
| EBIT | ₹-19.88 Cr | -52.38% | |
| Net profit | ₹-27.77 Cr | -295.27% | |
| EPS | ₹-18.28 | -241.04% | |
| EBIT margin | -23% |
P&L walk
Revenue grew +2% YoY to ₹55.80 Cr, but operating losses deepened sharply as total expenses rose 27% YoY; operating margin contracted 2600bps to -23%, marking the 5th straight quarter of margin deterioration; gross material costs fell, but employee costs (+10%), other expenses (+12.6%), and depreciation (+23%) all outpaced revenue; an impairment loss of ₹11.77 Cr on property, plant and equipment drove the net loss to ₹27.77 Cr; EPS fell to ₹-18.28.
Segments
The group has a single operating segment 'Skin Care and Hair Care Business' — no segment breakdown available.
Key positives
- Gross material costs declined 26% YoY to ₹387.81 lakh, aiding gross margin expansion of +120bps to 93.1% — though this is less meaningful for a services-led business.
- Operating cash flow turned slightly positive at ₹20.57 lakh for FY26 vs ₹1.21 lakh in FY25.
Key concerns
- OPM contracted 2600bps YoY to -23%, the 5th consecutive quarter of margin contraction, driven by rapid growth in other expenses (+12.6% YoY to ₹26.95 Cr) and employee costs (+10% to ₹17.56 Cr) without commensurate revenue growth.
- Net loss of ₹27.77 Cr is nearly 50% of quarterly revenue, even after stripping the ₹11.77 Cr impairment charge.
- Going-concern emphasis of matter in audit report; net equity negative at ₹-15,276 lakh.
- Total debt rose 17.6% YoY to ₹16,321 lakh while cash shrank to ₹138.70 lakh from ₹723.63 lakh — weak liquidity.
- Full-year FY26 loss of ₹96.17 Cr vs profit of ₹83.68 Cr in FY25 — a complete reversal, though prior year had a one-time gain from discontinued operations.
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