Kanchi Karpooram Q2 profit drops to Rs 42.93 lakh on sales

Kanchi Karpooram Limited reported standalone profit after tax of Rs 42.93 lakh for the quarter ended September 30, 2026, as camphor revenue fell to Rs 28.35 crore from Rs 41.16 crore in the preceding quarter and camphor segment profit before finance cost and tax declined to Rs 84.11 lakh.

Why did Kanchi Karpooram’s Q2 profit fall?

Kanchi Karpooram’s Q2 profit fell as the reported Camphor segment recorded lower revenue and a substantially lower segment result. Revenue from operations was Rs 28.35 crore in the quarter ended September 30, 2026, compared with Rs 41.16 crore in the quarter ended June 30, 2026 and Rs 38.77 crore in the quarter ended September 30, 2025. The sequential revenue decline was Rs 12.81 crore.

Kanchi Karpooram reported Camphor revenue of Rs 28.35 crore and did not report revenue from its Real Estate segment in the three comparative quarterly columns. The company identifies Camphor and Real Estate development as its operating segments under Indian Accounting Standard 108, or Ind AS 108. The absence of reported Real Estate revenue meant the change in operating revenue was attributable to Camphor.

Camphor segment profit before finance cost and tax was Rs 84.11 lakh, down from Rs 6.34 crore in the June 2026 quarter and Rs 3.23 crore a year earlier. Finance cost rose to Rs 28.04 lakh from Rs 13.95 lakh sequentially, while profit before tax fell to Rs 56.07 lakh from Rs 6.20 crore. The segment result declined more sharply than revenue during the quarter.

How did Kanchi Karpooram’s Q2 earnings compare?

Kanchi Karpooram’s standalone profit after tax was Rs 42.93 lakh in the September 2026 quarter, compared with Rs 4.59 crore in the June 2026 quarter and Rs 1.87 crore in the September 2025 quarter. Basic and diluted earnings per share were Rs 0.99, against Rs 10.57 in the preceding quarter and Rs 4.31 a year earlier. The weighted average number of shares was unchanged at 43,43,891.

Total income, including other income, was Rs 29.53 crore in Q2, compared with Rs 42.28 crore in the June quarter and Rs 39.95 crore in the year-earlier quarter. Other income was Rs 1.18 crore, versus Rs 1.12 crore sequentially and Rs 1.18 crore a year earlier. This comparatively stable income line did not counter the decline in revenue from operations.

Total expenses declined to Rs 28.97 crore from Rs 36.08 crore in the June 2026 quarter and Rs 37.40 crore in the September 2025 quarter. Raw-material consumption was Rs 27.92 crore, compared with Rs 30.13 crore sequentially and Rs 31.03 crore a year earlier. Although expenses decreased, the reduction was smaller than the Rs 12.81 crore sequential drop in revenue from operations.

What did Kanchi Karpooram’s first-half results show?

Kanchi Karpooram’s standalone profit after tax increased to Rs 5.02 crore for the half year ended September 30, 2026, from Rs 4.07 crore in the corresponding half of 2025. Profit before tax rose to Rs 6.76 crore from Rs 5.50 crore. The first-half increase contrasts with the September-quarter profit decline because the June 2026 quarter produced profit after tax of Rs 4.59 crore.

Revenue from operations for the six months was Rs 69.51 crore, down from Rs 74.64 crore in the corresponding prior-year half. Total income fell to Rs 71.81 crore from Rs 76.83 crore, while total expenses decreased to Rs 65.05 crore from Rs 71.33 crore. Camphor segment profit before finance cost and tax increased to Rs 7.18 crore from Rs 6.25 crore for the half year.

Finance cost for the first half was Rs 41.99 lakh, lower than Rs 75.09 lakh in the year-earlier period. The September-quarter Camphor segment result of Rs 84.11 lakh accounted for a small part of the Rs 7.18 crore first-half segment result, compared with Rs 6.34 crore in the June quarter. This shows that the half-year improvement was concentrated in the first quarter.

What changed in Kanchi Karpooram’s balance sheet?

Kanchi Karpooram reported total standalone assets of Rs 248.44 crore as of September 30, 2026, compared with Rs 227.73 crore on March 31, 2026. Camphor segment assets increased to Rs 205.61 crore from Rs 184.90 crore, while Real Estate segment assets were unchanged at Rs 42.83 crore. Segment assets therefore increased by Rs 20.71 crore overall.

Inventories were Rs 80.35 crore at September 30, compared with Rs 79.95 crore at March 31. Trade receivables declined to Rs 14.84 crore from Rs 19.92 crore, and cash and cash equivalents decreased to Rs 41.94 lakh from Rs 85.80 lakh. Other bank balances were Rs 19.09 crore, compared with Rs 11.17 crore at the financial year-end.

Total liabilities stood at Rs 26.25 crore on September 30, 2026, compared with Rs 9.96 crore on March 31, 2026. Camphor segment liabilities were Rs 22.25 crore, against Rs 5.96 crore at the financial year-end, while Real Estate segment liabilities remained Rs 4 crore. The standalone balance sheet recorded current borrowings of Rs 15.96 crore at September 30.

What volatility has Kanchi Karpooram flagged?

Kanchi Karpooram said market-driven, unprecedented fluctuations in camphor prices and input prices may cause its revenue and operating results to vary from quarter to quarter. The statement follows a quarter in which Camphor revenue declined by Rs 12.81 crore from June 2026 and Camphor segment profit fell by Rs 5.49 crore.

Kanchi Karpooram prepared the standalone results under Ind AS 34, the interim financial reporting standard, and its board approved them on November 14, 2026. P. Chandrasekar LLP completed a limited review and stated that nothing had come to its attention to suggest that the standalone results contained a material misstatement. The board announcement described the statutory auditors’ limited-review opinion as unmodified.

Conclusion

Kanchi Karpooram’s September-quarter standalone result reflected lower Camphor sales and a sharper contraction in segment profitability. Revenue from operations fell to Rs 28.35 crore, Camphor segment profit before finance cost and tax fell to Rs 84.11 lakh, and profit after tax was Rs 42.93 lakh. The first-half profit nevertheless rose to Rs 5.02 crore from Rs 4.07 crore because of the June-quarter result.

The next quarterly results will show whether Camphor revenue and segment profitability recover from the September-quarter levels. Management has specifically identified volatility in market-driven camphor and input prices as an unresolved factor that can affect quarter-to-quarter results, while inventories of Rs 80.35 crore and current borrowings of Rs 15.96 crore are balance-sheet figures to track.