Kakatiya Cement cuts quarterly loss to Rs 3.11 crore

Kakatiya Cement Sugar & Industries Limited reported a net loss of Rs 3.11 crore for the quarter ended 30 September 2026, narrowing from Rs 6.37 crore in the June quarter as revenue rose to Rs 22.89 crore and the cement segment loss reduced to Rs 0.98 crore. First-half revenue nevertheless declined from a year earlier.

How did Kakatiya Cement's September-quarter result change?

Kakatiya Cement reduced its post-tax loss to Rs 3.11 crore in the September 2026 quarter, from Rs 6.37 crore in the preceding June 2026 quarter and Rs 11.49 crore a year earlier. Loss per equity share narrowed to Rs 4.01 from Rs 8.19 in June and Rs 14.78 in the September 2025 quarter. The Board approved the unaudited results on 6 November 2026.

Revenue from operations increased to Rs 22.89 crore from Rs 17.95 crore in June, but was below Rs 25.41 crore in the September 2025 quarter. Including other income, total income was Rs 24.70 crore, compared with Rs 19.90 crore in June and Rs 27.18 crore a year earlier. Other income was Rs 1.81 crore, against Rs 1.94 crore sequentially.

The loss before tax was Rs 3.22 crore, compared with Rs 6.24 crore in June. The year-on-year reported comparison includes an exceptional item: the September 2025 quarter carried Rs 7.37 crore of wheeling charges. Before exceptional items, the September 2025 loss before tax was Rs 4.03 crore, compared with Rs 3.22 crore in the latest quarter.

What improved in Kakatiya Cement's cement segment?

Kakatiya Cement's cement segment recorded a loss before tax and interest of Rs 0.98 crore in the September quarter, improving from a Rs 3.90 crore loss in June and a Rs 1.94 crore loss a year earlier. Cement sales rose to Rs 16.50 crore from Rs 16.00 crore in the preceding quarter, although they remained below Rs 17.90 crore in the September 2025 quarter.

Cement accounted for most of the sequential movement in segment results. Its loss reduced by Rs 2.92 crore from June, while the total segment loss reduced by Rs 3.04 crore to Rs 2.89 crore. Finance costs were Rs 32.59 lakh in September, compared with Rs 29.99 lakh in June and Rs 4.11 lakh a year earlier, taking the loss before tax to Rs 3.22 crore.

The quarterly expense pattern changed alongside higher revenue. Power and fuel expense rose to Rs 11.43 crore from Rs 4.88 crore in June, while cost of materials consumed increased to Rs 2.43 crore from Rs 1.35 crore. Changes in inventories were Rs 4.37 crore, lower than Rs 10.35 crore in June, while total expenses rose to Rs 27.92 crore from Rs 26.13 crore.

Why did Kakatiya Cement's first-half revenue decline?

Kakatiya Cement reported first-half revenue from operations of Rs 40.84 crore for the six months ended 30 September 2026, down from Rs 50.97 crore a year earlier. Its net loss after tax narrowed to Rs 9.48 crore from Rs 14.71 crore, although the prior-year figure included the Rs 7.37 crore exceptional wheeling charge.

Cement sales for the six months were Rs 32.50 crore, down from Rs 37.76 crore in the corresponding prior-year period. Sugar sales were Rs 6.34 crore, compared with Rs 13.21 crore a year earlier. The filing reported no power-segment revenue for either first-half period, while power revenue was Rs 99 lakh for the year ended 31 March 2026.

The segment data show that cement and sugar remained loss-making during the first half. Cement's loss before tax and interest improved to Rs 4.89 crore from Rs 10.20 crore, while sugar's loss narrowed to Rs 3.36 crore from Rs 3.46 crore. The power segment loss was Rs 58.27 lakh, versus Rs 86.97 lakh a year earlier, and finance costs increased to Rs 62.58 lakh from Rs 9.02 lakh.

What does Kakatiya Cement's September balance sheet show?

Kakatiya Cement reported total assets of Rs 220.58 crore at 30 September 2026, compared with Rs 229.60 crore at 31 March 2026. Inventories declined to Rs 23.51 crore from Rs 34.20 crore, while cash and cash equivalents fell to Rs 12.47 lakh from Rs 2.29 crore over the same period.

Property, plant and equipment was Rs 43.16 crore at the half-year date, down from Rs 44.49 crore at the March year end. Other non-current financial assets were Rs 69.65 crore, compared with Rs 69.66 crore. Trade receivables were Rs 17.95 crore, nearly unchanged from Rs 17.96 crore six months earlier.

Equity share capital was unchanged at Rs 7.77 crore, while other equity declined to Rs 163.11 crore from Rs 174.92 crore at 31 March 2026. Borrowings were Rs 19.55 crore, marginally above Rs 19.50 crore at year end. Trade payables to creditors other than micro and small enterprises were Rs 7.85 crore, compared with Rs 8.09 crore in March.

How did Kakatiya Cement's costs and tax affect the loss?

Kakatiya Cement reported total expenses of Rs 54.05 crore for the six months ended 30 September 2026, down from Rs 62.01 crore in the prior-year period. Power and fuel expense decreased to Rs 16.31 crore from Rs 23.31 crore, while other expenses fell to Rs 7.90 crore from Rs 9.39 crore. Employee benefits expense was Rs 9.37 crore, compared with Rs 9.50 crore a year earlier.

The reported half-year loss before tax was Rs 9.46 crore, compared with Rs 14.62 crore in the year-earlier period after exceptional items. Deferred tax was a credit of Rs 10.62 lakh in the September quarter, following a deferred-tax expense of Rs 13.39 lakh in June. This resulted in a half-year post-tax loss of Rs 9.48 crore and a loss per share of Rs 12.20, versus Rs 18.92 a year earlier.

Conclusion

Kakatiya Cement's September-quarter outcome showed a narrower reported loss, led by a reduction in the cement segment loss and a sequential recovery in revenue to Rs 22.89 crore. However, first-half sales of Rs 40.84 crore were below Rs 50.97 crore a year earlier, and cement, sugar and power each reported a loss for the six-month period.

The filing disclosed no management earnings target, production plan or revenue guidance beyond the results approved on 6 November 2026. The unresolved issue for subsequent results is whether cement sales can improve from Rs 16.50 crore in the September quarter and whether sugar sales can recover from the Rs 6.34 crore reported for the first half.