KCP posts Rs 10.16 crore standalone loss as cement EBIT falls

KCP reported a Rs 10.16 crore standalone loss for the quarter ended September 30, 2026, compared with a Rs 36.80 crore profit a year earlier, as cement EBIT turned into a Rs 1.69 crore loss and prior-year dividend income from an overseas subsidiary did not recur. Revenue rose to Rs 438.08 crore.

Why did KCP report a standalone loss in Q2?

KCP reported the September-quarter loss because total expenses of Rs 454.95 crore exceeded total income of Rs 441.36 crore. In the quarter ended September 30, 2025, total income was Rs 420.36 crore and expenses were Rs 371.52 crore, resulting in a Rs 36.80 crore profit from continuing operations.

The result also worsened from the preceding quarter. KCP recorded a Rs 48 lakh profit from continuing operations in the quarter ended June 30, 2026, with profit before tax of Rs 64 lakh; by September 2026, profit before tax had changed to a Rs 13.59 crore loss. A deferred-tax credit of Rs 3.27 crore and a current-tax credit of Rs 16 lakh reduced the final loss to Rs 10.16 crore.

The reversal occurred despite a Rs 57.05 crore year-on-year rise in revenue from operations to Rs 438.08 crore. Other income declined to Rs 3.28 crore from Rs 39.32 crore, as the September 2025 figure included a Rs 35.02 crore dividend declared by an overseas subsidiary and the corresponding current-year amount was nil.

How did KCP’s cement business perform in Q2?

KCP’s cement segment recorded earnings before interest and tax, or EBIT, loss of Rs 1.69 crore for the quarter ended September 30, 2026, against EBIT of Rs 25.46 crore a year earlier. Cement revenue nevertheless increased to Rs 393.27 crore from Rs 341.46 crore, showing that the revenue increase did not convert into positive segment EBIT.

Cement EBIT also declined from Rs 2.24 crore in the quarter ended June 30, 2026, while cement revenue increased from Rs 357.98 crore. For the six months ended September 30, 2026, cement EBIT was Rs 55 lakh, compared with Rs 48.96 crore in the first half of 2025-26, although segment revenue increased to Rs 751.25 crore from Rs 700.44 crore.

Cement was KCP’s largest standalone segment, contributing Rs 393.27 crore of the quarter’s Rs 438.08 crore operating revenue. Segment assets were Rs 1,243.37 crore at September 30, 2026, down from Rs 1,283.95 crore at June 30, while liabilities increased to Rs 500.01 crore from Rs 493.93 crore.

Which costs increased in KCP’s September quarter?

KCP’s total expenses rose by Rs 83.43 crore year on year in the September 2026 quarter, more than the Rs 57.05 crore increase in operating revenue. Power and fuel expense rose to Rs 136.17 crore from Rs 111.50 crore, while freight and forwarding expense increased to Rs 103.39 crore from Rs 78.20 crore.

Raw-material consumption increased to Rs 95.70 crore from Rs 83.50 crore, and other expenditure rose to Rs 58.73 crore from Rs 48.09 crore. Depreciation and amortisation increased to Rs 18.30 crore from Rs 15.31 crore, and finance cost rose to Rs 7.17 crore from Rs 5.24 crore; employee-benefit expense declined to Rs 28.60 crore from Rs 30.86 crore.

Sequentially, total expenses increased from Rs 394.27 crore in the June 2026 quarter to Rs 454.95 crore in the September quarter. Power and fuel rose by Rs 17.04 crore, freight by Rs 11.77 crore and other expenditure by Rs 6.37 crore, while operating revenue increased by Rs 49.41 crore over the same period.

What do KCP’s half-year results and cash flows show?

KCP posted a Rs 9.68 crore standalone loss from continuing operations for the six months ended September 30, 2026, compared with a Rs 51.08 crore profit in the first half of 2025-26. Revenue from operations increased to Rs 826.75 crore from Rs 769.06 crore, but profit before tax changed to a Rs 12.95 crore loss from a Rs 71.81 crore profit.

Other income for the first half declined to Rs 9.52 crore from Rs 43.11 crore. The filing identifies the Rs 35.02 crore dividend declared by the overseas subsidiary in the September 2025 quarter, while the corresponding current-year dividend was nil; the company did not provide a separate source-wise allocation of all other income.

Net cash flow from operating activities was Rs 61.18 crore in the first half of 2026-27, down from Rs 97.56 crore a year earlier. Investing cash outflow narrowed to Rs 34.39 crore from Rs 141.61 crore as purchases of fixed assets, including intangible assets and capital work in progress, fell to Rs 40.54 crore from Rs 144.86 crore.

How did KCP’s other standalone segments change?

KCP’s heavy-engineering segment reported EBIT loss of Rs 7.94 crore in the September 2026 quarter, compared with a Rs 3.92 crore loss a year earlier and EBIT of Rs 12 lakh in the June 2026 quarter. Segment revenue increased to Rs 34.27 crore from Rs 29.44 crore a year earlier and Rs 20.45 crore sequentially.

The hotel segment remained profitable at the EBIT level, reporting Rs 2.11 crore in the September quarter, compared with Rs 2.30 crore a year earlier and Rs 2.15 crore in the prior quarter. Hotel revenue was Rs 10.35 crore against Rs 9.92 crore in September 2025, and segment assets stood at Rs 54.31 crore on September 30, 2026.

Other unallocable expenditure, net of unallocable income, was Rs 1.04 crore in the September 2026 quarter, compared with net unallocable income of Rs 30.04 crore a year earlier. This movement occurred alongside the fall in other income to Rs 3.28 crore, though KCP only specifically identified the overseas-subsidiary dividend within that income line.

Conclusion

KCP’s standalone September-quarter result shows that higher revenue did not offset negative cement EBIT, a wider heavy-engineering loss, increased costs and the absence of the prior-year Rs 35.02 crore overseas-subsidiary dividend. For the first half, revenue reached Rs 826.75 crore while continuing-operations earnings moved from a Rs 51.08 crore profit to a Rs 9.68 crore loss.

The next disclosed corporate event is the departure of Chief Financial Officer and key managerial personnel Anis Tyebali Hyderi at the close of business on January 10, 2027, for personal reasons. KCP did not disclose a target or plan for restoring cement EBIT in this filing, leaving subsequent segment results and the finance leadership transition as matters to watch.