Kaka Industries commissions Rs 25.9048 crore solar plant

Kaka Industries Limited commissioned and capitalised a 7.5 megawatt (MW) ground-mounted captive solar plant in Gujarat at Rs 25.9048 crore effective July 1, 2026. The addition lifted property, plant and equipment to Rs 108.0733 crore by September 30, 2026, while depreciation began from capitalisation and made half-year depreciation incomparable with earlier periods.

What solar project did Kaka Industries commission?

Kaka Industries commissioned a 7.5 MW ground-mounted captive solar power plant at Bordi village, Thasra taluka, Kheda district, Gujarat, during the half year ended September 30, 2026. The company added solar plant and machinery of Rs 25.9048 crore to property, plant and equipment from July 1, 2026.

The filing describes the facility as captive but does not disclose expected electricity generation, power-cost savings, the proportion of consumption to be met, land area, or the project’s funding structure. It also does not disclose a project return, payback period or a separate operating segment for solar power.

Kaka Industries made the disclosure in explanatory notes to its unaudited standalone results for the half year ended September 30, 2026. The board approved those results on November 6, 2026, and the company said its only reportable segment is plastic products, including manufacture, sales and installation of UPVC and PVC profiles, sheets, moulding, windows and doors.

How did the solar plant change Kaka Industries' asset base?

Kaka Industries' property, plant and equipment rose by Rs 29.804 crore to Rs 108.0733 crore at September 30, 2026, from Rs 78.2693 crore at March 31, 2026. The Rs 25.9048 crore solar plant-and-machinery addition represented most of that half-year increase, although the filing does not provide a complete reconciliation for all fixed-asset movements.

Capital work-in-progress declined by Rs 24.0998 crore to Rs 1.9762 crore at September 30 from Rs 26.076 crore at March 31. This decline occurred in the same half year as the July 1 capitalisation, but Kaka Industries does not expressly attribute the whole reduction in work-in-progress to the solar facility.

Total assets increased by Rs 12.8769 crore, less than the rise in property, plant and equipment because other items moved during the period. Inventories rose to Rs 56.1895 crore from Rs 47.4625 crore, while cash and cash equivalents fell to Rs 2.9445 crore from Rs 8.7688 crore between March 31 and September 30, 2026.

Why is Kaka Industries' depreciation not comparable?

Kaka Industries said it began charging depreciation on the Rs 25.9048 crore solar plant to profit and loss from July 1, 2026, making depreciation for the half year ended September 30, 2026 not comparable with previous periods. The September half therefore contains three months of depreciation on a newly capitalised 7.5 MW asset.

The company did not disclose the depreciation amount relating to the solar plant, its useful life, depreciation method, or comparative depreciation expense. It also did not provide profit before tax or net profit excluding solar-related depreciation, so the direct reported effect of the new asset on earnings cannot be calculated from the filing.

The results were prepared under Accounting Standard 25, Interim Financial Reporting, rather than Indian Accounting Standards. Kaka Industries said companies listed on the small and medium enterprise exchange are exempt from compulsory Indian Accounting Standards adoption under the Ministry of Corporate Affairs notification cited in its notes.

What did Kaka Industries report for the September half year?

Kaka Industries reported revenue from operations of Rs 157.4696 crore for the half year ended September 30, 2026, compared with Rs 124.8946 crore in the corresponding prior-year half. Profit before tax rose to Rs 16.0514 crore from Rs 11.7707 crore and net profit increased to Rs 11.761 crore from Rs 8.8526 crore.

Revenue was also higher than Rs 138.3384 crore reported for the half year ended March 31, 2026. Net profit was Rs 11.761 crore against Rs 9.9214 crore in that preceding half, while profit before tax increased from Rs 13.1278 crore.

Tax expense in the September 2026 half was Rs 4.2904 crore, compared with Rs 2.9181 crore a year earlier and Rs 3.2064 crore in the March 2026 half. The September tax figure comprised current tax of Rs 2.57 crore and deferred tax of Rs 1.6465 crore, but Kaka Industries did not link the deferred-tax charge specifically to the solar asset.

What does the capitalisation mean for Kaka Industries' reporting?

The capitalisation moves the 7.5 MW facility into depreciable property, plant and equipment from July 1, 2026, rather than leaving it in capital work-in-progress. That treatment coincided with property, plant and equipment increasing by Rs 29.804 crore and capital work-in-progress declining by Rs 24.0998 crore during the half year.

Kaka Industries' reserves and surplus increased to Rs 81.2189 crore at September 30 from Rs 69.4578 crore at March 31, while share capital was unchanged at Rs 13.66 crore. Long-term borrowings were Rs 45.0394 crore at September 30, compared with Rs 46.7565 crore at March 31, but the company did not identify whether any borrowing financed the solar project.

Dinesh R Thakkar & Co. issued an unmodified limited-review conclusion on the standalone results dated November 6, 2026. The reviewer stated that nothing had come to its attention suggesting the statement failed to disclose information required under Regulation 33 of the Securities and Exchange Board of India listing regulations or contained a material misstatement.

Conclusion

The Rs 25.9048 crore solar-plant capitalisation was the principal fixed-asset event in Kaka Industries' September 2026 half-year results, alongside a Rs 29.804 crore increase in property, plant and equipment. Revenue rose by Rs 32.575 crore year on year and net profit increased by Rs 2.9084 crore, although newly charged depreciation limits comparison of depreciation with earlier periods.

The next reported periods should contain a longer depreciation period for the asset capitalised on July 1, 2026. Kaka Industries has not disclosed generation expectations, power savings, financing, asset life or financial targets for the 7.5 MW plant, leaving those matters unresolved in the November 6, 2026 filing.