K.S. Oils says depreciation switch cut Q2 pre-tax loss Rs 3.24 crore

K.S. Oils Limited said its switch to straight-line depreciation from 1 July 2026 reduced depreciation and loss before tax by Rs 3.24 crore for the quarter ended 30 September 2026. The company reported a pre-tax loss of Rs 8.88 crore, while the change increased deferred-tax charge by Rs 0.81 crore.

How did the depreciation change affect K.S. Oils' Q2 loss?

K.S. Oils said the depreciation-method change lowered its depreciation expense by Rs 3.24 crore and reduced its Q2 loss before tax by the same amount. Reported depreciation and amortisation expense was Rs 2.91 crore for the quarter ended 30 September 2026, while reported loss before tax was Rs 8.88 crore and loss after tax was Rs 7.54 crore.

Based on K.S. Oils' disclosed accounting effect, the pre-tax loss would have been Rs 12.12 crore without the estimate change, calculated by adding Rs 3.24 crore to the reported loss. The company also reported a Rs 0.81 crore higher deferred-tax charge from the change, implying a Rs 2.43 crore reduction in post-tax loss; this is a calculation from disclosed figures, not a separately reported adjusted result.

Why did K.S. Oils switch to straight-line depreciation?

K.S. Oils changed depreciation on property, plant and equipment from the written-down-value method to the straight-line method, effective 1 July 2026. Management said its technical evaluation found that the economic benefits from the refurbished Kota and Guna plants would be consumed evenly over their remaining useful lives, so the straight-line method better reflected that pattern.

K.S. Oils linked the assessment to the plants' revival after the National Company Law Tribunal, or NCLT, approved resolution plan. The Kota plant began operations on 1 October 2025 and the Guna plant on 1 April 2026, and the company said both refurbished plants were in continuous operation at stable capacity during the period.

Was K.S. Oils' depreciation change applied retrospectively?

K.S. Oils treated the method change as a change in accounting estimate and applied it prospectively from 1 July 2026. It said this treatment follows Indian Accounting Standard, or Ind AS, 16 and Ind AS 8, with depreciation charged over remaining useful lives prescribed under Schedule II to the Companies Act, 2013.

The quarter ended 30 June 2026 was not affected because the new method started on 1 July 2026. Depreciation and amortisation expense was Rs 6.14 crore in the June quarter, compared with Rs 2.91 crore in the September quarter, while the half-year total was Rs 9.06 crore and included the disclosed Rs 3.24 crore reduction in Q2.

What were K.S. Oils' Q2 and half-year results?

K.S. Oils reported revenue from operations of Rs 88.25 crore and total income of Rs 89.21 crore for the quarter ended 30 September 2026. Total expenses were Rs 98.09 crore, resulting in the Rs 8.88 crore loss before tax; the company reported neither exceptional items nor current-tax expense for the quarter.

Sequentially, revenue from operations declined from Rs 162.09 crore in the quarter ended 30 June 2026 to Rs 88.25 crore in Q2, while loss before tax widened from Rs 4.55 crore to Rs 8.88 crore. Finance costs rose from Rs 2.67 crore to Rs 4.08 crore, while cost of materials consumed declined from Rs 116.96 crore to Rs 104.57 crore.

For the half year ended 30 September 2026, K.S. Oils reported total income of Rs 251.86 crore, total expenses of Rs 265.28 crore and a loss before tax of Rs 13.42 crore. The loss after tax was Rs 13.30 crore, against Rs 12.05 crore in the corresponding prior-year half year, although the company said the periods were not comparable because Kota began operations only in October 2025 and Guna in April 2026.

What do K.S. Oils' cash flow and balance sheet show?

K.S. Oils used Rs 4.63 crore in operating activities during the six months ended 30 September 2026 and Rs 50.80 crore in investing activities. The investing outflow principally covered purchases of property, plant and equipment, capital work-in-progress, right-of-use assets, capital advances and capital creditors.

Net financing inflow was Rs 56.11 crore in the half year, comprising Rs 39.39 crore of net current borrowings, Rs 23.34 crore of net non-current borrowings and Rs 0.15 crore of net lease liabilities, partly offset by Rs 6.75 crore of finance costs paid. Cash and cash equivalents closed at Rs 0.68 crore after a Rs 0.68 crore net increase during the period.

Total assets rose to Rs 434.00 crore at 30 September 2026 from Rs 399.84 crore at 31 March 2026. Property, plant and equipment increased to Rs 209.37 crore from Rs 206.72 crore, and capital work-in-progress rose to Rs 100.80 crore from Rs 81.17 crore.

Total borrowings, combining current and non-current amounts, reached Rs 377.37 crore at 30 September 2026, compared with Rs 314.64 crore at 31 March 2026. Equity declined to Rs 3.81 crore from Rs 17.13 crore as other equity moved to negative Rs 13.17 crore from positive Rs 0.15 crore, while current liabilities were Rs 381.01 crore.

Conclusion

K.S. Oils' reported Q2 loss before tax of Rs 8.88 crore included a Rs 3.24 crore reduction from a prospective depreciation-estimate change rather than an exceptional item or operating-income item. The accounting effect accompanied a sequential decline in revenue to Rs 88.25 crore from Rs 162.09 crore and a rise in finance costs to Rs 4.08 crore from Rs 2.67 crore.

The next scheduled event disclosed by K.S. Oils is its 40th annual general meeting on 18 December 2026. Remote electronic voting is scheduled to begin at 9:00 a.m. on 15 December 2026 and end at 5:00 p.m. on 17 December 2026.