K.S. Oils Limited posts ₹13.30 crore first-half loss after restart

K.S. Oils Limited reported a Rs 13.30 crore net loss for the half year ended 30 September 2026 despite Rs 250.34 crore of revenue from operations, as total expenses reached Rs 265.28 crore and the company spent Rs 50.80 crore on investing activities following the restart of its Kota and Guna plants.

How did K.S. Oils perform in the first half of FY27?

K.S. Oils recorded total income of Rs 251.86 crore and a loss before tax of Rs 13.42 crore in the half year ended 30 September 2026. Revenue from operations contributed Rs 250.34 crore, other income was Rs 1.51 crore and total expenses were Rs 265.28 crore. The company reported no exceptional items and no current-tax charge for the period.

The net loss was Rs 13.30 crore, compared with a Rs 12.05 crore loss in the half year ended 30 September 2025. Basic and diluted earnings per share, which were not annualised, were a loss of Rs 0.78 in the latest half year against a loss of Rs 0.71 a year earlier. K.S. Oils said the periods are not comparable because the Kota plant began operations on 1 October 2025 and the Guna plant began operations on 1 April 2026.

The September 2026 quarter generated Rs 88.25 crore of revenue from operations, down from Rs 162.09 crore in the June 2026 quarter. Its loss for the period widened to Rs 7.54 crore from Rs 5.76 crore in the preceding quarter. Materials consumed were Rs 104.57 crore in the September quarter, while changes in inventories reduced expenses by Rs 18.91 crore.

What drove K.S. Oils' first-half loss?

Materials consumed, at Rs 221.52 crore, were K.S. Oils' largest first-half cost and exceeded its revenue from operations by Rs 28.82 crore. Inventory changes added Rs 16.56 crore of expense, while depreciation and amortisation were Rs 9.06 crore, finance costs were Rs 6.75 crore, other expenses were Rs 6.18 crore and employee-benefit expense was Rs 5.22 crore.

Finance costs rose to Rs 6.75 crore from Rs 0.31 crore in the half year ended 30 September 2025. The increase occurred alongside the latest-period borrowings and resumed plant operations. K.S. Oils reports one segment, edible oil, under Indian Accounting Standard 108, so the filing does not provide separate profit figures by product or geography.

K.S. Oils changed the depreciation method for property, plant and equipment from written-down value to the straight-line method with effect from 1 July 2026. Management said the Kota and Guna plants had been refurbished under the National Company Law Tribunal-approved resolution plan and that its technical evaluation found the assets' economic benefits would be consumed evenly over their remaining useful lives.

The accounting-estimate change reduced depreciation by Rs 3.24 crore in both the September 2026 quarter and the half year, lowering loss before tax by the same amount. It also increased the deferred-tax charge by Rs 0.81 crore. The June 2026 quarter was not affected by the change, according to K.S. Oils.

How did K.S. Oils finance investment and working capital?

K.S. Oils used Rs 4.63 crore in operating activities and Rs 50.80 crore in investing activities during the half year ended 30 September 2026. The investing outflow covered purchases of property, plant and equipment, capital work-in-progress, right-of-use assets, capital advances and capital creditors. This compared with an investing outflow of Rs 36.26 crore in the half year ended 30 September 2025.

Cash generated before working-capital changes was Rs 2.39 crore, after adjusting the Rs 13.42 crore loss before tax for Rs 9.06 crore of depreciation and Rs 6.75 crore of finance costs. Working-capital movements then resulted in cash generated from operations of negative Rs 4.59 crore, and net operating cash use of Rs 4.63 crore after Rs 0.04 crore of income tax paid.

Trade receivables increased by Rs 1.87 crore and other current assets increased by Rs 5.96 crore in the cash-flow statement. Inventories increased by Rs 1.63 crore and trade payables declined by Rs 4.63 crore, partly offset by a Rs 6.85 crore increase in other financial liabilities. These movements explain why operating cash flow remained negative despite the Rs 2.39 crore pre-working-capital figure.

Net financing cash inflow was Rs 56.11 crore, including Rs 23.34 crore from non-current borrowings and Rs 39.39 crore from current borrowings. K.S. Oils paid Rs 6.75 crore of finance costs and recorded a Rs 0.15 crore net increase in lease liabilities. Cash and cash equivalents closed at Rs 0.68 crore on 30 September 2026, from no opening balance reported at 31 March 2026.

What changed in K.S. Oils' balance sheet by September 2026?

Total assets increased to Rs 434.00 crore on 30 September 2026 from Rs 399.84 crore at 31 March 2026. Non-current assets rose to Rs 321.42 crore from Rs 296.58 crore, comprising Rs 209.37 crore of property, plant and equipment and Rs 100.80 crore of capital work-in-progress. Capital work-in-progress increased by Rs 19.63 crore over the six months.

Current assets rose to Rs 112.59 crore from Rs 103.26 crore at the March year-end. Inventories were Rs 74.39 crore, compared with Rs 72.76 crore, and trade receivables increased to Rs 5.13 crore from Rs 3.26 crore. Other current assets rose to Rs 20.11 crore from Rs 14.15 crore.

Total borrowings increased by Rs 62.73 crore to Rs 377.37 crore at 30 September 2026 from Rs 314.64 crore at 31 March 2026. Non-current borrowings rose to Rs 48.62 crore from Rs 25.28 crore, while current borrowings increased to Rs 328.75 crore from Rs 289.36 crore. The balance-sheet movement corresponds with the Rs 56.11 crore financing inflow reported in the cash-flow statement.

Equity declined to Rs 3.81 crore at 30 September 2026 from Rs 17.13 crore six months earlier. Paid-up share capital was unchanged at Rs 16.98 crore, while other equity moved to negative Rs 13.17 crore from positive Rs 0.15 crore. Current liabilities totalled Rs 381.01 crore, including Rs 328.75 crore of borrowings.

Conclusion

K.S. Oils generated Rs 250.34 crore of first-half revenue after its plant restarts, but costs of Rs 265.28 crore resulted in a Rs 13.30 crore loss. The result was also affected by a prospective depreciation-method change that reduced first-half depreciation and loss before tax by Rs 3.24 crore, while operating cash flow was negative Rs 4.63 crore.

The disclosed matter to watch is the funding of continuing plant investment and working capital while Kota and Guna remain in continuous operation at stable capacity, as management stated. Borrowings stood at Rs 377.37 crore on 30 September 2026 after Rs 50.80 crore of investing cash use and Rs 56.11 crore of net financing inflow during the half year.