Kiri Industries Q2 FY27 Results (NSE: KIRIINDUS)
Signal: Margin expansion
The read
The operating recovery is real but fragile: consolidated revenue grew 40% YoY to ₹298.55 crore and standalone material margin expanded 270bps YoY to 29.1%, yet EBITDA margin fell 750bps QoQ to -0.7% and earnings after tax turned to -₹38.68 crore because treasury mark-to-market losses overwhelmed manufacturing profitability; Q2 interrupts the margin recovery seen in Q1FY27.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹298.55 Cr | 40% | -4% |
| Net profit | ₹-38.68 Cr | -51% | |
| EBIT margin | -0.7% |
P&L walk
Revenue increased to ₹298.55 crore, +40% YoY but -4% QoQ, while EBITDA margin fell to -0.7% from 6.8% QoQ; a ₹57.30 crore treasury valuation loss and lower associate contribution drove earnings after tax to -₹38.68 crore.
Segments
There is no reported segment table; the key consolidated gap is between the manufacturing business, which remained EBITDA-positive in standalone results at ₹6.86 crore, and group earnings, which fell to -₹38.68 crore after a ₹57.30 crore treasury valuation loss and lower ₹16.15 crore associate contribution.
Key positives
- Consolidated revenue reached ₹298.55 crore, +40% YoY, while standalone revenue rose 48% YoY to ₹288.18 crore.
- Standalone material margin improved to 29.1% from 26.4% YoY, with management attributing the improvement to stronger H-Acid and Vinyl Sulphone pricing.
- Management said higher market prices for key dye intermediates should progressively improve realizations and profitability, subject to market-price sustainability.
- Consolidated CWIP increased to ₹283.06 crore from ₹41.64 crore as the integrated copper-fertilizer project advanced, with equipment deliveries and civil works progressing.
Key concerns
- Consolidated EBITDA margin fell to -0.7% from 6.8% QoQ as operational expenses rose 3% QoQ to ₹300.64 crore against a 4% revenue decline.
- The ₹57.30 crore non-cash treasury valuation loss drove consolidated earnings after tax to -₹38.68 crore despite ₹23.80 crore of realised investment gains and ₹15.20 crore of dividend and interest income.
- Standalone EBITDA declined 70% QoQ to ₹6.86 crore as higher fuel, power and effluent-treatment costs offset improved realizations.
- Associate profit fell 84% YoY to ₹16.15 crore, reducing a previously material support to consolidated earnings.
- Cash and bank balances declined to ₹412.37 crore from ₹1,055.04 crore as funds were deployed toward capital expenditure and loans.
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