Kaka Industries capitalises Rs 25.90 crore solar plant in Kheda

Kaka Industries Limited capitalised a 7.5 megawatt (MW) ground-mounted captive solar power plant in Kheda from July 1, 2026, adding Rs 25.90 crore of solar plant and machinery to property, plant and equipment. Kaka Industries said depreciation began on the capitalisation date, making first-half depreciation not comparable with earlier periods.

What did Kaka Industries commission in Kheda?

Kaka Industries commissioned a 7.5 MW ground-mounted captive solar power plant during the half year ended September 30, 2026. The plant is at Village Bordi, Taluka Thasra, District Kheda, Gujarat, and its Rs 25.90 crore plant-and-machinery value was added to property, plant and equipment, or PPE, from July 1, 2026.

The filing identifies the facility as a captive solar plant but does not provide expected annual electricity generation, its power consumption allocation, project funding, or anticipated cost savings. The disclosed 7.5 MW capacity and Rs 25.90 crore capitalised amount are therefore the available measures of the project in Kaka Industries’ September 2026 results.

The July 1, 2026 capitalisation means the plant was recognised as an operating fixed asset in the second half of the April-to-September reporting period. Kaka Industries did not disclose a commissioning date before July 1, an individual depreciation charge for the plant, or a useful-life assumption in the results notes.

When did Kaka Industries start depreciating the solar asset?

Kaka Industries started charging depreciation on the solar plant from July 1, 2026, the date on which it capitalised the Rs 25.90 crore asset. The company explicitly said depreciation for the half year ended September 30, 2026 is not comparable with previous periods because of that new depreciation charge.

This accounting treatment puts the completed project in PPE rather than capital work-in-progress, or CWIP, and records depreciation in the statement of profit and loss from capitalisation. Kaka Industries did not state the depreciation method, rate, amount, or the expected total depreciable life of the 7.5 MW facility.

The September 2026 standalone results were prepared under Accounting Standard 25, Interim Financial Reporting, and were approved by Kaka Industries’ board on November 6, 2026. Its statutory auditor issued an unmodified limited-review conclusion, stating that nothing had come to its attention to suggest required information was not disclosed or that the statement contained a material misstatement.

How did the solar plant change Kaka Industries’ fixed assets?

Kaka Industries’ PPE rose by Rs 29.80 crore to Rs 108.07 crore at September 30, 2026, from Rs 78.27 crore at March 31, 2026. The Rs 25.90 crore solar plant addition represented most of that increase, although the filing does not provide a complete reconciliation of additions, disposals and depreciation within PPE.

CWIP fell by Rs 24.10 crore to Rs 1.98 crore at September 30, 2026, compared with Rs 26.08 crore at March 31, 2026. The decline occurred alongside the solar asset’s transfer into PPE, but Kaka Industries did not state that the full CWIP reduction related solely to the Kheda project.

Kaka Industries’ total assets increased by Rs 12.88 crore over the six-month balance-sheet comparison, less than the rise in PPE because other asset categories also moved. Inventories increased to Rs 56.19 crore from Rs 47.46 crore, while trade receivables rose to Rs 38.65 crore from Rs 34.98 crore between March 31 and September 30, 2026.

What were Kaka Industries’ first-half financial results?

Kaka Industries reported revenue from operations of Rs 157.47 crore for the half year ended September 30, 2026, compared with Rs 124.89 crore in the corresponding half year ended September 30, 2025. Net profit increased to Rs 11.76 crore from Rs 8.85 crore across those periods, while depreciation included the solar asset from July 1, 2026.

Profit before tax rose to Rs 16.05 crore in the September 2026 half year from Rs 11.77 crore a year earlier. Total expenses increased to Rs 141.85 crore from Rs 113.30 crore, meaning the revenue increase of Rs 32.58 crore exceeded the Rs 28.55 crore increase in total expenses in the reported comparison.

Kaka Industries recorded basic and diluted earnings per share of Rs 8.61 for the September 2026 half year, versus Rs 6.48 in the year-earlier period. The company said half-year earnings per share were not annualised and reported one business segment, plastic products, covering manufacturing, sales and installation of UPVC and PVC profiles, sheets, mouldings, windows and doors.

What does Kaka Industries disclose about the plant’s operating impact?

Kaka Industries discloses the plant’s 7.5 MW capacity, Kheda location, Rs 25.90 crore capitalisation and July 1, 2026 depreciation start, but it does not quantify the project’s operating impact. In particular, the filing provides no electricity-generation figure, power-cost reduction, payback period, return estimate, or separate profit contribution for the September 2026 half year.

The company also does not disclose a solar expansion target or another planned commissioning date in its November 6, 2026 results announcement. Its available operational disclosure is confined to the completed Kheda asset and the accounting effect that makes depreciation comparisons with previous periods unsuitable.

Kaka Industries received no investor complaints during the half year ended September 30, 2026, according to the explanatory notes. The company’s results remain standalone, and the filing says the September 2026 figures and related documents are available on the BSE website and Kaka Industries’ website.

Conclusion

Kaka Industries put a Rs 25.90 crore, 7.5 MW captive solar asset into use from July 1, 2026, increasing PPE to Rs 108.07 crore and reducing CWIP to Rs 1.98 crore at September 30. The asset transfer coincided with higher first-half revenue of Rs 157.47 crore and net profit of Rs 11.76 crore, but the filing does not isolate the plant’s effect on costs or earnings.

The next reported periods will show a fuller period of depreciation following the July 1, 2026 capitalisation, which Kaka Industries says limits comparison of first-half depreciation with earlier periods. The November 2026 filing does not disclose a generation target, savings target, further solar investment plan, or scheduled project event to track.