Kiri Industries LimitedChemicalsKIRIINDUS
Q1 FY27 earnings callKiri Industries Limited
The quarter delivered strong profit driven by treasury gains, while the core dyes business improved on better realizations and the major copper/fertilizer project advanced into construction.
Numbers
| Metric | This quarter | Change | Five-quarter trend |
|---|---|---|---|
| Standalone Revenue | INR 295 crore | 63% | |
| Standalone EBITDA Margin | 5.86% | — | |
| Standalone Material Margin | 31.9% | — | |
| Consolidated Revenue | INR 312 crores | 55% | |
| Consolidated EBITDA Margin | 7.84% | — | |
| Profit After Tax | INR 270 crores | — | |
| Other Income | INR 284 crores | — | |
| Share of Profit from Associates | INR 21 crores | 30% |
Financials
| Quarter | Revenue | Net profit (PAT) | Basic EPS |
|---|---|---|---|
| Q3 FY25 | ₹178.63 Cr-18.3% YoY-34.4% QoQ | ₹176.89 Cr+40% YoY+120.3% QoQ | ₹28.47+16.8% YoY+83.8% QoQ |
| Q2 FY25 | ₹272.23 Cr+18.1% YoY+2.7% QoQ | ₹80.30 Cr+327.4% YoY+2.7% QoQ | ₹15.49+326.7% YoY+2.7% QoQ |
| Q1 FY25 | ₹265.17 Cr+16.6% YoY-1.4% QoQ | ₹78.19 CrTurned profitable YoYTurned profitable QoQ | ₹15.08Turned positive YoYTurned positive QoQ |
| Q4 FY24 | ₹269.06 Cr+21% YoY+23% QoQ | ₹-9.60 CrLoss narrowed YoYTurned loss-making QoQ | ₹-1.97Loss/share narrowed YoYTurned negative QoQ |
| Q3 FY24 | ₹218.73 Cr+7.3% YoY-5.1% QoQ | ₹126.37 Cr+134.1% YoY+572.5% QoQ | ₹24.38+134% YoY+571.6% QoQ |
TL;DR
- Standalone revenue grew 63% YoY to INR 295 crore, led by price realizations.
- Profit after tax was INR 270 crore, significantly boosted by INR 284 crore in other income (treasury).
- Integrated copper & fertilizer project is in construction phase, with downstream facilities targeted from Q1 FY28.
- Existing dyes business saw material margin improve to 31.9% from 20.4% last quarter.
- Management declined to declare a dividend, citing capital needs for the large growth project.
Said on the call
“The performance is what the company is promising and we promise to you.”
From the Q&A
| Topic | What management said |
|---|---|
| Dividend Policy | A shareholder pressed for dividends after a long wait, but management stated there is no Board decision to declare a dividend, citing the need to retain capital for the large copper/fertilizer project. |
| Copper Project Timelines | Management detailed a phased commissioning plan: copper tube plant targeted for June 2027, copper rod plant for August-September 2027, copper refinery by Q3 FY29, with smelter and fertilizer plants in Q1 2029. |
| Raw Material Sourcing (Copper) | The company has MoUs for approximately 1 million tons of copper concentrate and is engaging with global miners and traders, with firm contracts expected closer to the October 2028 LME Week. |
| Existing Business Margins vs JV | When asked why standalone profitability is lower than the Lonsen Kiri JV, management explained that the JV captures finished product margins, while Kiri supplies raw materials, and the product portfolios are different. |
| Project Financing | Over 50% debt commitments are received, but full financial closure is not yet achieved. An equity raise is a 'plan B' option, but management prefers deferred dilution to maximize shareholder value creation. |
| MCB Copper-Gold Project | Management confirmed Kiri has structured 70% off-take rights but acknowledged ongoing shareholder litigation with Celsius, stating the matter is sub judice and they await court clarity. |
| Capital Deployed in Copper Project | Total equity capital deployed in the copper project so far is INR 1,400 crore. |
Guidance
- Downstream copper facilities (tube) targeted for commissioning in Q1 FY28.
- Copper rod plant targeted for FY28.
- Copper refinery targeted for Q3 FY29.
- Full copper project revenues expected to be captured in FY29-30.
- Aim to increase average capacity utilization in dyes business to 70%-75% this year.
- Debt repayment for the copper project will start sometime in 2029.
Source
Summary written from the transcript filed by Kiri Industries Limited for the call held on 18 Aug 2026; published 21 Aug 2026, 23:24 IST.