Kanoria Chemicals returns to profit as revenue rises 71%

Kanoria Chemicals & Industries Limited reported a Rs 22.72 crore profit from continuing operations in the quarter ended 30 September 2026, reversing a Rs 2.24 crore loss a year earlier, as revenue from operations rose 71% to Rs 357.98 crore. The comparable prior-year reported profit included a discontinued-operation gain.

How did Kanoria Chemicals perform in the September 2026 quarter?

Kanoria Chemicals moved to a Rs 22.72 crore profit after tax from continuing operations in the September 2026 quarter from a Rs 2.24 crore loss in the September 2025 quarter. Revenue from operations rose from Rs 209.84 crore to Rs 357.98 crore, while total income increased from Rs 222.14 crore to Rs 360.76 crore. The board approved the unaudited consolidated results on 13 November 2026.

Profit before tax from continuing operations rose to Rs 30.57 crore from Rs 1.15 crore. Profit before finance costs, depreciation, amortisation and tax increased to Rs 46.08 crore from Rs 18.53 crore, while finance costs declined to Rs 5.90 crore from Rs 8.63 crore. Depreciation and amortisation increased to Rs 9.61 crore from Rs 8.75 crore.

Kanoria Chemicals reported total profit of Rs 22.72 crore, compared with Rs 91.81 crore in the corresponding quarter. The year-earlier headline figure included Rs 94.05 crore profit after tax from discontinued operations, including a Rs 97.66 crore gain on the loss of control of APAG Holding AG. There was no discontinued-operation contribution in the latest quarter.

Which Kanoria Chemicals segments drove the revenue increase?

Kanoria Chemicals' chemicals segment supplied most of the increase, with quarterly revenue reaching Rs 327.27 crore from Rs 190.87 crore a year earlier. Textile revenue increased to Rs 30.71 crore from Rs 18.97 crore. Chemicals accounted for about 91% of the consolidated Rs 357.98 crore revenue from operations in the September 2026 quarter.

Both segments reported positive results in the latest quarter. Chemicals segment result rose to Rs 34.55 crore from Rs 15.66 crore, while textiles recorded Rs 1.92 crore after a Rs 5.88 crore loss in September 2025. Combined segment result rose to Rs 36.47 crore from Rs 9.78 crore, before deduction of Rs 5.90 crore in finance costs.

The sequential comparison showed lower revenue than the June 2026 quarter, when revenue from operations was Rs 460.37 crore. Chemicals revenue declined from Rs 429.99 crore in June to Rs 327.27 crore in September, while textile revenue was Rs 30.71 crore against Rs 30.38 crore. Continuing-operations profit also declined from Rs 26.36 crore in June to Rs 22.72 crore in September.

What do Kanoria Chemicals' half-year figures show?

Kanoria Chemicals earned Rs 49.08 crore from continuing operations in the half year ended 30 September 2026, reversing a Rs 2.79 crore loss in the prior-year half year. Half-year revenue from operations rose to Rs 818.35 crore from Rs 411.22 crore, while profit before tax increased to Rs 65.81 crore from Rs 3.91 crore.

The half-year headline comparison is affected by discontinued operations. Total profit for the six months ended September 2025 was Rs 78.03 crore because it included Rs 80.82 crore from discontinued operations, including the APAG loss-of-control gain. In the latest half year, total profit of Rs 49.08 crore came entirely from continuing operations.

Chemicals generated Rs 757.26 crore of half-year revenue, compared with Rs 377.41 crore a year earlier, and segment result increased to Rs 74.52 crore from Rs 29.22 crore. Textiles generated Rs 61.09 crore of revenue versus Rs 33.81 crore and returned to a Rs 4.51 crore segment profit from a Rs 9.37 crore loss. Total segment result rose to Rs 79.03 crore from Rs 19.85 crore.

How did Kanoria Chemicals' balance sheet and cash flow change?

Kanoria Chemicals' total assets were Rs 1,188.36 crore at 30 September 2026, compared with Rs 1,117.04 crore at 31 March 2026. Current assets increased to Rs 340.53 crore from Rs 285.57 crore, including trade receivables of Rs 183.74 crore against Rs 133.53 crore and inventories of Rs 125.74 crore against Rs 106.12 crore. Total equity rose to Rs 623.31 crore from Rs 572.92 crore.

Total liabilities increased to Rs 565.05 crore from Rs 544.12 crore, although borrowings declined. Non-current borrowings were Rs 165.64 crore at September-end versus Rs 183.01 crore in March, while current borrowings were Rs 54.41 crore versus Rs 107.35 crore. Trade payables owed to parties other than micro and small enterprises rose to Rs 207.20 crore from Rs 130.75 crore.

Net cash generated from operating activities was Rs 99.09 crore in the six months to September 2026, compared with Rs 7.71 crore a year earlier. Cash generated from operations reached Rs 99.59 crore after an Rs 81.68 crore increase in trade and other payables, while receivables and inventories used Rs 49.63 crore and Rs 19.63 crore respectively. Cash and cash equivalents ended at Rs 5.55 crore, from Rs 10.46 crore at the start of the financial year.

What financing and accounting items affected Kanoria Chemicals' results?

Kanoria Chemicals issued 4,95,000 non-convertible, non-cumulative, non-participating redeemable 7% preference shares on 18 April 2026 at rupees 1,000 each, raising Rs 49.50 crore. Under Indian Accounting Standard 109, the shares were fair-valued at Rs 43.20 crore using the effective-interest method. The resulting Rs 6.30 crore gain was included in other income in the June 2026 quarter and half year.

Other income was Rs 2.78 crore in the September quarter, compared with Rs 12.30 crore a year earlier, while half-year other income was Rs 9.53 crore against Rs 12.85 crore. APAG ceased to be a subsidiary on 31 July 2025 after issuing fresh equity shares, resulting in the Rs 97.66 crore accounting gain and classification of its operations as discontinued.

The statutory auditors issued an unmodified limited-review conclusion dated 13 November 2026. The consolidated results include Kanoria Africa Textiles PLC, whose September-quarter revenue was Rs 30.71 crore and loss after tax was Rs 55 lakh before consolidation adjustments, based on reviewed interim financial information from its other auditor.

Conclusion

Kanoria Chemicals' continuing businesses moved from a Rs 2.24 crore loss to a Rs 22.72 crore profit in the September quarter as revenue increased to Rs 357.98 crore. Chemicals delivered most of the revenue and segment result, while textiles shifted from a Rs 5.88 crore segment loss to a Rs 1.92 crore profit. The discontinued APAG gain makes the prior-year total-profit comparison unsuitable as a measure of current operations.

The filing discloses no future target, plan or scheduled event. The next results will show whether the half-year revenue level of Rs 818.35 crore persists, and whether receivables of Rs 183.74 crore, inventories of Rs 125.74 crore and cash of Rs 5.55 crore change after the September reporting date.