KCP Q2 revenue rises 45% as sugar sales nearly double year-on-year

The KCP Limited reported consolidated revenue from operations of Rs 873.04 crore for the quarter ended 30 September 2026, up 45% year on year, as sugar revenue rose 97% to Rs 434.96 crore. First-half profit attributable to KCP’s owners, however, declined 21% to Rs 76.47 crore despite the sales expansion.

How much did KCP’s consolidated revenue grow in Q2?

KCP’s consolidated revenue from operations rose to Rs 873.04 crore in the three months ended 30 September 2026, from Rs 601.53 crore a year earlier. The Rs 271.51 crore increase also lifted revenue from Rs 779.34 crore in the preceding June 2026 quarter, while total income, including other income, reached Rs 911.83 crore against Rs 612.60 crore in the September 2025 quarter.

For the six months ended 30 September 2026, revenue from operations was Rs 1,652.39 crore, compared with Rs 1,278.04 crore in the corresponding prior-year period. Total income increased to Rs 1,718 crore from Rs 1,305.61 crore, although consolidated profit before tax decreased to Rs 118.19 crore from Rs 158.93 crore. The board approved the unaudited results on 6 November 2026 after audit committee review.

Which business drove KCP’s Q2 sales increase?

KCP’s sugar segment drove the increase, with quarterly revenue nearly doubling to Rs 434.96 crore from Rs 220.50 crore a year earlier. Sugar overtook cement, which remained the second-largest reported operating segment by Q2 revenue at Rs 393.27 crore, up from Rs 341.46 crore in the prior-year quarter.

The first-half pattern was similar: sugar revenue increased to Rs 825.63 crore from Rs 508.98 crore, while cement revenue rose to Rs 751.25 crore from Rs 700.44 crore. Heavy engineering contributed Rs 34.27 crore in Q2, up from Rs 29.44 crore, and hotel revenue was Rs 10.35 crore, compared with Rs 9.92 crore.

KCP reported Q2 sugar earnings before interest and tax, or EBIT, of Rs 48.52 crore, compared with Rs 44.90 crore a year earlier. In contrast, cement recorded an EBIT loss of Rs 1.69 crore, versus EBIT of Rs 25.46 crore in Q2 2025-26; heavy engineering recorded a Rs 7.94 crore loss against a Rs 3.92 crore loss a year before.

Why did KCP’s first-half profit decline despite higher revenue?

KCP’s first-half profit attributable to owners fell to Rs 76.47 crore from Rs 96.51 crore, even as revenue expanded by Rs 374.35 crore. Profit after tax and the share of the joint venture was Rs 120.18 crore for the half year, down from Rs 137.43 crore, while profit before tax fell by Rs 40.75 crore to Rs 118.19 crore.

The segment results show that first-half sugar EBIT declined to Rs 86.83 crore from Rs 111.24 crore, despite its revenue growth. Cement EBIT dropped more sharply to Rs 55 lakh from Rs 48.96 crore, while heavy engineering’s EBIT loss widened to Rs 7.82 crore from Rs 3.21 crore. Hotel EBIT increased to Rs 4.26 crore from Rs 4.06 crore.

Reported expenses rose to Rs 1,599.81 crore in the first half from Rs 1,148.54 crore. Cost of raw materials consumed was Rs 738.23 crore, versus Rs 679.74 crore, while freight and forwarding expense rose to Rs 213.15 crore from Rs 175.49 crore, finance cost increased to Rs 22.11 crore from Rs 19.07 crore, and depreciation and amortisation rose to Rs 51.21 crore from Rs 44.67 crore.

How does sugar seasonality affect KCP’s quarterly comparison?

KCP said its subsidiary, KCP Vietnam Industries Limited, manufactures sugar and that its season normally runs from January to May in Vietnam. KCP specifically cautioned that the subsidiary’s seasonal activity means financial results may not be comparable from quarter to quarter.

This context matters because sugar revenue was Rs 434.96 crore in Q2 2026-27 after Rs 390.67 crore in Q1, and sugar EBIT was Rs 48.52 crore after Rs 38.31 crore. On a year-on-year basis, Q2 sugar revenue grew from Rs 220.50 crore and EBIT rose from Rs 44.90 crore, but the disclosed seasonality limits simple sequential conclusions.

The consolidated accounts also include Fives Cail KCP Limited, a joint venture. KCP recorded a Rs 78 lakh share of loss from the joint venture in Q2, replacing a Rs 30 lakh share of profit a year earlier. The first-half joint-venture result was a Rs 1.28 crore loss, compared with a Rs 78 lakh loss in the corresponding prior-year period.

What changed in KCP’s cash flow and balance sheet?

KCP reported net cash used in operating activities of Rs 118.44 crore in the first half, compared with cash used of Rs 94.79 crore in the prior-year half. The statement recorded a Rs 255.57 crore increase in other bank deposits and a Rs 50.55 crore increase in current trade receivables, while inventories decreased by Rs 101.49 crore.

Net cash from investing activities turned positive at Rs 9.25 crore, compared with an outflow of Rs 141.68 crore a year earlier, as capital expenditure on fixed assets and capital work in progress fell to Rs 46.92 crore from Rs 154.20 crore. Financing activities generated Rs 94.89 crore, versus Rs 261.02 crore, with borrowing proceeds of Rs 140.75 crore and repayments of Rs 11.39 crore.

Consolidated total assets stood at Rs 3,743.50 crore on 30 September 2026, up from Rs 3,581.90 crore on 31 March 2026. Sugar segment assets were Rs 2,156.30 crore, while sugar segment liabilities were Rs 1,115.75 crore; consolidated current borrowings increased to Rs 514.70 crore from Rs 373.15 crore over the same dates.

Conclusion

KCP’s Q2 revenue growth was led primarily by the sugar business, whose Rs 434.96 crore sales accounted for more than the full year-on-year increase in group revenue. Yet first-half earnings declined because sugar EBIT fell from the earlier period and cement EBIT fell to Rs 55 lakh, while higher freight, finance and depreciation expenses accompanied the larger revenue base.

The next reported periods will need to be considered against the January-to-May sugar cycle disclosed for KCP Vietnam Industries Limited. Readers can also watch whether cement profitability changes from the first-half Rs 55 lakh EBIT, and how current borrowings, which stood at Rs 514.70 crore on 30 September 2026, evolve after the reported first-half operating cash outflow of Rs 118.44 crore.