Kati Patang H1 revenue rose 78% while loss reached Rs 4.51 crore

Kati Patang Lifestyle Limited reported consolidated H1 FY2027 total income of Rs 10.73 crore for the six months ended September 30, 2026, up 77.8% year on year, while its consolidated net loss widened to Rs 4.51 crore from Rs 3.06 crore. Kati Patang sold 75,303 cases, 97.7% more than a year earlier, but used Rs 7.66 crore in operating activities.

Why did Kati Patang’s H1 revenue rise 78%?

Kati Patang reported total income of Rs 10.73 crore in H1 FY2027, compared with Rs 6.03 crore in H1 FY2026, according to its consolidated results. The company’s performance presentation describes this as revenue growth of 77.8% for April to September 2026. In the quarter ended September 30, 2026, total income was Rs 4.48 crore, up 42.7% from Rs 3.14 crore in the corresponding quarter.

Kati Patang’s alcohol and beer line was its largest listed operating-revenue component at Rs 10.02 crore in H1 FY2027, versus Rs 5.38 crore a year earlier. The results also list Rs 91.44 lakh of revenue from KLP lifestyle events and Rs 59.33 lakh from digital services for the current half year. Other income was Rs 1.85 lakh, against Rs 5.58 lakh in H1 FY2026.

Kati Patang sold 75,303 cases in H1 FY2027, an increase of 37,216 cases from 38,087 cases in H1 FY2026. Q2 volume was 29,805 cases, up 81.3% from 16,441 cases a year earlier. The volume increase of 97.7% in H1 exceeded the presentation’s reported 77.8% total-income growth.

The reported comparisons have an accounting-presentation limitation. Kati Patang said that from FY2027 it includes excise duty on alcohol and beer sales in revenue from operations and shows the same amount separately as an expense; earlier results showed revenue net of excise duty. In addition, the three listed H1 operating-revenue components total Rs 11.53 crore, which does not reconcile to reported total income of Rs 10.73 crore in the consolidated statement.

Why did Kati Patang’s loss widen despite higher sales?

Kati Patang’s consolidated net loss widened to Rs 4.51 crore in H1 FY2027 from Rs 3.06 crore in H1 FY2026, despite the Rs 4.69 crore increase in reported total income. Loss before tax was Rs 4.51 crore, compared with Rs 2.94 crore a year earlier. No current or deferred tax expense was recorded for the current half year.

Total expenses rose to Rs 15.27 crore from Rs 8.57 crore, an increase of Rs 6.70 crore that exceeded the increase in reported income. Depreciation and amortisation in the consolidated income statement increased to Rs 5.70 crore from Rs 3.57 crore, employee benefit expense rose to Rs 2.10 crore from Rs 1.39 crore, and inventory changes were Rs 3.03 crore against Rs 2.02 crore. Purchase of services was Rs 3.15 crore, broadly unchanged from Rs 3.14 crore.

Kati Patang’s presentation described the result as improving operating leverage because loss before tax equalled 42.1% of H1 income in FY2027, compared with 48.8% in H1 FY2026. That is a 6.7-percentage-point reduction in the loss-to-income ratio. The absolute loss nevertheless increased by Rs 1.57 crore, as consolidated expenses rose faster than total income.

What did Kati Patang report on operating cash flow?

Kati Patang used Rs 7.66 crore in consolidated operating activities in H1 FY2027, compared with Rs 5.44 crore used in H1 FY2026. Cash generated from operations was negative Rs 7.66 crore after working-capital movements, versus negative Rs 5.44 crore in the prior-year period. The cash-flow statement therefore did not show positive operating cash generation from the higher sales and volumes during the half year.

The reported working-capital movements included Rs 3.87 crore used by higher trade and other receivables, Rs 2.16 crore used by higher inventories and Rs 1.13 crore used by other current financial assets. These outflows were partly offset by Rs 2.86 crore from trade and other payables, Rs 1.84 crore from other current financial liabilities and Rs 2.04 crore from other non-current financial liabilities. Consolidated trade receivables were Rs 11.35 crore at September 30, 2026, up from Rs 7.48 crore at March 31, 2026.

Kati Patang received Rs 12.20 crore from financing activities in H1 FY2027, including Rs 6.41 crore from issuing equity share capital and Rs 5.41 crore from securities-premium or other-equity movements. Consolidated cash and cash equivalents closed at Rs 1.53 crore on September 30, 2026, compared with Rs 1.39 crore at March 31, 2026 and Rs 3.30 crore at September 30, 2025. Non-current borrowings were Rs 14.08 crore, compared with Rs 12.72 crore at March 31, 2026.

What expansion and reporting matters should readers track?

Kati Patang entered Madhya Pradesh during Q2 FY2027 with Kati Patang Saffron Lager and Bareilly Extra Bold, following its July 2026 launch in Chandigarh. Management said its three priorities were to sustain growth through retail distribution, shelf availability and repeat sales; improve gross contribution, earnings before interest, tax, depreciation and amortisation, and cash cycles; and expand its domestic footprint.

Kati Patang acquired 100% of Agnetta International Private Limited with control effective May 20, 2026. The acquisition accounting remains provisional under Indian Accounting Standard 103 because valuations of certain identifiable intangible assets, property, plant and equipment and contingent liabilities had not been finalised. The company said the purchase-price allocation can be finalised within a measurement period of up to 12 months from the acquisition date.

The consolidated limited-review report stated that receivable and payable balances were subject to balance confirmations and that certain statutory dues remained outstanding at September 30, 2026. It also said interim results of Empyrean Spirits Private Limited, Kati Patang Limited UK and Agnetta included in the consolidation had not been audited by their auditors. The reviewer expressed no audit opinion because the engagement was a limited review rather than an audit.

Conclusion

Kati Patang’s H1 FY2027 result combines rapid reported top-line and case-volume expansion with higher expenditure, a wider consolidated net loss and increased operating cash use. Alcohol and beer was the largest listed revenue line at Rs 10.02 crore, while total expenses of Rs 15.27 crore exceeded reported total income of Rs 10.73 crore.

The next disclosed milestones are management’s distribution, margin and cash-conversion priorities following the Madhya Pradesh and Chandigarh launches, and completion of the provisional Agnetta purchase-price allocation within 12 months of May 20, 2026. Readers can also monitor whether receivable and payable confirmations and the cited outstanding statutory dues are resolved in subsequent disclosures.