Kenrik Industries revenue falls 36%, profit drops to Rs 0.61 lakh

Kenrik Industries Limited reported revenue from operations of Rs 14.25 crore for the half year ended 30 September 2026, down 36% from Rs 22.13 crore a year earlier, while net profit after tax fell to Rs 0.61 lakh from Rs 58.45 lakh. The company remained profitable, but the decline in revenue exceeded the reduction in expenses.

Why did Kenrik Industries’ first-half revenue decline?

Kenrik Industries’ revenue from operations declined by Rs 7.88 crore to Rs 14.25 crore in the half year ended 30 September 2026, from Rs 22.13 crore in the corresponding half year ended 30 September 2025. The company identifies trading in gold, silver ornaments and bullion as its only reportable primary business segment under Indian Accounting Standard 108, or Ind AS 108.

Total income also fell to Rs 14.25 crore from Rs 22.13 crore because Kenrik Industries reported no other income in the latest half year, compared with Rs 0.14 lakh in the year-earlier period. The filing does not provide figures for trading volumes, bullion prices, customers or individual product categories, so it does not identify a specific cause for the lower revenue.

The September 2026 half-year revenue was also below the Rs 58.06 crore reported for the half year ended 31 March 2026. Kenrik Industries notes that the 31 March 2026 half-year figures are balancing figures derived from the audited full-year results and year-to-date figures for the relevant financial year.

How did Kenrik Industries’ profit change?

Kenrik Industries’ net profit after tax fell by Rs 57.84 lakh to Rs 0.61 lakh for the half year ended 30 September 2026, from Rs 58.45 lakh in the corresponding 2025 period. Profit before tax declined to Rs 0.81 lakh from Rs 78.06 lakh, before a current-tax expense of Rs 0.20 lakh in the latest half year.

The expense reduction did not match the decline in sales. Cost of materials consumed decreased to Rs 14.19 crore from Rs 21.18 crore, while total expenses fell to Rs 14.24 crore from Rs 21.35 crore. Revenue declined by Rs 7.88 crore, compared with a Rs 7.12 crore reduction in total expenses.

Other expenses fell to Rs 4.40 lakh from Rs 13.01 lakh, and employee-benefit expense was nil against Rs 3.86 lakh a year earlier. Depreciation and amortisation was unchanged at Rs 0.59 lakh, while finance costs were nil in the September 2026 half year compared with Rs 0.20 lakh in the corresponding period.

What changed in Kenrik Industries’ balance sheet?

Kenrik Industries’ total assets declined to Rs 24.90 crore at 30 September 2026 from Rs 26.41 crore at 31 March 2026. Current assets decreased to Rs 24.85 crore from Rs 26.37 crore, led by lower trade receivables and inventories.

Trade receivables fell to Rs 11.81 crore at 30 September 2026 from Rs 13.25 crore at 31 March 2026, while inventories declined to Rs 12.59 crore from Rs 12.72 crore. Cash and cash equivalents rose to Rs 31.84 lakh from Rs 7.79 lakh over the same period.

Total equity was Rs 22.34 crore at 30 September 2026, compared with Rs 22.34 crore at 31 March 2026 after rounding. Other equity increased to Rs 9.85 crore from Rs 9.84 crore, while paid-up equity share capital remained Rs 12.50 crore, with a face value of Rs 10 per share.

Current liabilities declined to Rs 2.56 crore from Rs 4.07 crore at 31 March 2026. However, trade payables to creditors other than micro and small enterprises increased to Rs 2.37 crore from Rs 53.73 lakh, while current borrowings were unchanged at Rs 11.60 lakh.

How did cash flow change at Kenrik Industries?

Kenrik Industries generated net cash from operating activities of Rs 24.05 lakh during the six months ended 30 September 2026, compared with net cash used in operating activities of Rs 9.56 crore during the year ended 31 March 2026. Cash and cash equivalents consequently increased by Rs 24.05 lakh during the latest half year.

The operating cash movement included a Rs 1.45 crore decrease in trade receivables and a Rs 1.53 crore increase in trade payables. Inventory declined by Rs 13.07 lakh, while other liabilities decreased by Rs 3.07 crore, according to the cash-flow statement prepared under Ind AS 7, Statement of Cash Flows.

Kenrik Industries reported no investing cash flow and no financing cash flow during the half year ended 30 September 2026. Cash on hand was Rs 25.55 lakh and balances in current bank accounts were Rs 6.29 lakh at 30 September 2026, together making up the Rs 31.84 lakh cash-and-cash-equivalents balance.

What did Kenrik Industries disclose about its review and business?

Kenrik Industries’ board approved the unaudited results for the half year ended 30 September 2026 on 6 November 2026, after review by its Audit Committee. V S S B & Associates issued a limited review report stating that nothing had come to its attention indicating that the results failed to make required disclosures or contained a material misstatement.

The results remain unaudited because a limited review is narrower in scope than an audit. The reviewer said the financial statements were prepared using the recognition and measurement principles of Ind AS 34, Interim Financial Reporting, and that its work was conducted under Standard on Review Engagement 2410.

Kenrik Industries’ notes state that it issued 34.98 lakh equity shares in its initial public offering at Rs 25 per share, including a Rs 15 premium, raising Rs 8.75 crore. Its equity shares were listed on the BSE SME Platform on 9 May 2025.

Conclusion

Kenrik Industries’ half-year result shows a substantial reduction in activity in its sole reported gold, silver ornaments and bullion trading segment. Revenue declined to Rs 14.25 crore and net profit after tax reduced to Rs 0.61 lakh, as the fall in total expenses to Rs 14.24 crore did not fully offset the Rs 7.88 crore decline in revenue.

The filing does not provide revenue guidance, a recovery target or a scheduled operating plan. The next result disclosure will show whether revenue improves from the Rs 14.25 crore reported for the half year ended 30 September 2026 and whether receivables of Rs 11.81 crore and trade payables of Rs 2.37 crore continue to change.