KIC Metaliks September profit falls 66% as revenue declines

K I C Metaliks Limited (KIC Metaliks) reported profit from continuing operations of Rs 34.75 lakh for the quarter ended September 30, 2026, down 66% from Rs 1.02 crore in the June 2026 quarter. Revenue from operations declined by Rs 74.85 crore sequentially to Rs 153.38 crore, while the changes-in-inventories line became an Rs 18.23 crore expense.

Why did KIC Metaliks’ September-quarter profit fall sequentially?

KIC Metaliks’ September-quarter profit fell sequentially as lower revenue and a changed inventory accounting line coincided with a reduction in profit before tax. Profit from continuing operations was Rs 34.75 lakh in the quarter ended September 30, 2026, compared with Rs 1.02 crore in the quarter ended June 30, 2026. Profit before tax declined to Rs 53.17 lakh from Rs 2.73 crore, while total revenue fell to Rs 154.04 crore from Rs 228.37 crore.

The changes in inventories of finished goods, work-in-progress and stock-in-trade were recorded as an Rs 18.23 crore expense in the September quarter, compared with a Rs 1.15 crore reduction in expenses in the June quarter. That represented an adverse movement of Rs 19.39 crore in this line item. The filing does not provide a physical inventory movement for the September quarter, so it does not establish that inventories increased during those three months.

How did KIC Metaliks perform against the year-earlier quarter?

KIC Metaliks remained profitable in the September 2026 quarter, with profit from continuing operations rising to Rs 34.75 lakh from Rs 8.08 lakh a year earlier. Profit before tax increased to Rs 53.17 lakh from Rs 15.40 lakh in the quarter ended September 30, 2025, and total comprehensive income rose to Rs 34.85 lakh from Rs 8.12 lakh. Basic and diluted earnings per share were Rs 0.10, against Rs 0.02 a year earlier, on equity shares with a face value of Rs 2 each.

Revenue from operations nevertheless declined by Rs 29.04 crore year on year, to Rs 153.38 crore from Rs 182.42 crore. Cost of materials consumed fell by Rs 49.21 crore to Rs 112.00 crore, while finance costs declined to Rs 58.51 lakh from Rs 3.23 crore. The inventory-change line was an Rs 18.23 crore expense, compared with a Rs 7.51 crore reduction in expenses in the September 2025 quarter, showing a different working-inventory effect despite the improvement in reported profit.

Which costs changed most in KIC Metaliks’ September quarter?

KIC Metaliks’ material-consumption expense declined by Rs 87.65 crore sequentially to Rs 112.00 crore, the largest reduction among the reported expense lines. Other expenses also fell by Rs 4.91 crore to Rs 9.69 crore, and finance costs declined by Rs 38.06 lakh to Rs 58.51 lakh. Depreciation and amortisation were nearly unchanged at Rs 3.73 crore, versus Rs 3.73 crore in the June quarter.

The lower material cost was accompanied by lower operating revenue of Rs 153.38 crore, versus Rs 228.23 crore in the preceding quarter. Purchases of stock-in-trade increased to Rs 3.18 crore from Rs 2.32 crore, while employee-benefit expense increased by Rs 57.09 lakh to Rs 6.09 crore. Total expenses declined by Rs 72.13 crore, which was less than the Rs 74.33 crore decline in total revenue, leaving profit before tax at Rs 53.17 lakh.

What did KIC Metaliks report for the half year ended September 2026?

KIC Metaliks reported a return to first-half profit, recording Rs 1.37 crore of profit from continuing operations for the half year ended September 30, 2026. It had reported a Rs 1.07 crore loss from continuing operations in the corresponding half year ended September 30, 2025. Profit before tax was Rs 3.26 crore, compared with a loss before tax of Rs 1.42 crore in the earlier period.

Revenue from operations for the six months rose to Rs 381.61 crore from Rs 334.42 crore, an increase of Rs 47.18 crore. Total revenue increased to Rs 382.40 crore from Rs 334.92 crore, while total expenses rose to Rs 379.14 crore from Rs 336.34 crore. The half-year tax expense was Rs 1.89 crore, comprising Rs 54.51 lakh of current tax and Rs 1.35 crore of deferred tax.

The half-year inventory-change line was an Rs 17.08 crore expense, compared with a Rs 14.89 crore reduction in expenses in the prior-year period. Finance costs fell to Rs 1.55 crore from Rs 4.97 crore, while depreciation and amortisation remained broadly stable at Rs 7.46 crore against Rs 7.46 crore. KIC Metaliks reported one business segment, Iron & Steel and allied products, and therefore did not provide separate product or geographic revenue data.

What do KIC Metaliks’ balance sheet and cash flow show?

KIC Metaliks’ total assets were Rs 366.14 crore as of September 30, 2026, down from Rs 386.30 crore on March 31, 2026. Inventories fell to Rs 141.62 crore from Rs 185.69 crore over that period, while total equity increased to Rs 176.59 crore from Rs 175.22 crore. Current borrowings rose to Rs 113.47 crore from Rs 97.00 crore, and non-current borrowings declined slightly to Rs 5.55 crore from Rs 5.64 crore.

KIC Metaliks used Rs 24.35 crore in operating activities during the half year ended September 30, 2026, compared with Rs 10.49 crore generated in the year-earlier half. A Rs 44.06 crore reduction in inventories was recorded as a working-capital cash-flow adjustment, but this was offset by a Rs 40.40 crore increase in other current financial assets, a Rs 22.15 crore decrease in trade payables and a Rs 17.55 crore decrease in other current liabilities. Cash and cash equivalents closed at Rs 87,000, compared with Rs 10.07 crore at the start of the half year.

Conclusion

KIC Metaliks’ September-quarter result combined a 66% sequential fall in profit from continuing operations to Rs 34.75 lakh with a Rs 74.85 crore decline in revenue from operations. The quarter still compared favourably with September 2025, when profit was Rs 8.08 lakh, while the first half delivered Rs 1.37 crore of profit after a Rs 1.07 crore loss a year earlier.

The next disclosed operational item is the Mini Blast Furnace at KIC Metaliks’ Durgapur plant, which was shut from September 9, 2026 to October 14, 2026 for rectification work on the furnace and its accessories. Management said the furnace resumed operations on October 15, 2026, so subsequent financial results will indicate the reported effect of the resumption.