KIOCL Limited pellet plant posts Rs 2.81 crore quarterly profit

KIOCL Limited reported a Rs 2.81 crore pellet-plant segment profit for the quarter ended September 30, 2026, reversing losses in the prior and year-earlier quarters despite segment revenue falling to Rs 7.54 crore from Rs 59.81 crore sequentially. KIOCL reported standalone net profit of Rs 5.02 crore for the quarter.

What did KIOCL’s pellet plant report in the September 2026 quarter?

KIOCL’s pellet plant made a segment profit of Rs 2.81 crore in the three months ended September 30, 2026, compared with a segment loss of Rs 14.54 crore in the preceding three months ended June 30, 2026. In the corresponding quarter of the previous year, ended September 30, 2025, the plant recorded a larger segment loss of Rs 48.76 crore.

The September-quarter profit was reported alongside pellet-plant revenue of Rs 7.54 crore. That revenue was lower than the Rs 59.81 crore reported in the June 2026 quarter, while it exceeded the Rs 3.21 crore disclosed for the September 2025 quarter. The filing does not state the operational or pricing factors behind the move from loss to profit.

KIOCL labels the Rs 2.81 crore figure as a segment result, rather than separately defining it as operating profit in the segment note. The company’s overall profit before tax was Rs 5.70 crore in the September 2026 quarter, after a Rs 15.95 crore loss before tax in the June 2026 quarter and a Rs 17.15 crore loss before tax a year earlier.

How sharply did KIOCL pellet plant revenue decline sequentially?

KIOCL’s pellet-plant revenue declined by Rs 52.27 crore, or about 87%, from Rs 59.81 crore in the June 2026 quarter to Rs 7.54 crore in the September 2026 quarter. Despite that sequential decline, the September-quarter revenue was Rs 4.33 crore above the Rs 3.21 crore reported in the corresponding quarter of 2025.

The pellet plant was not KIOCL’s largest reported source of operating income in the September quarter. Other operating revenue from service contracts was Rs 172.26 crore, compared with Rs 97.14 crore in the preceding quarter and Rs 139.33 crore in the year-earlier quarter. Net sales and income from operations therefore rose to Rs 179.90 crore from Rs 158.01 crore sequentially.

KIOCL’s total revenue, including other income, was Rs 202.96 crore for the September 2026 quarter, up from Rs 180.46 crore in the June 2026 quarter and Rs 162.32 crore a year earlier. Other income contributed Rs 23.06 crore in the latest quarter, compared with Rs 22.45 crore in the preceding quarter, so the pellet-plant revenue decline occurred within an increase in reported company revenue.

How did KIOCL’s pellet plant perform in the first half?

KIOCL’s pellet plant recorded a first-half segment loss of Rs 11.73 crore for the period ended September 30, 2026, but this was narrower than the Rs 99.47 crore loss in the corresponding first half of 2025. The plant generated Rs 67.35 crore of revenue in the latest first half, against Rs 14.66 crore a year earlier.

The first-half figures combine the Rs 14.54 crore loss reported in the June 2026 quarter with the Rs 2.81 crore profit reported in the September 2026 quarter. Accordingly, the September-quarter improvement reduced, but did not eliminate, the pellet plant’s loss for the April-to-September period.

At the company level, KIOCL reported a net loss of Rs 10.46 crore for the half year ended September 30, 2026, compared with a net loss of Rs 54.95 crore in the prior-year half year. Profit before tax was a loss of Rs 10.25 crore in the latest half year, compared with a loss of Rs 55.64 crore in the corresponding 2025 period.

How did KIOCL’s other businesses affect quarterly results?

KIOCL’s pig iron plant recorded a segment loss of Rs 1.28 crore in the September 2026 quarter, compared with losses of Rs 1.04 crore in the June 2026 quarter and Rs 3.83 crore in the September 2025 quarter. The segment-revenue table shows Rs 1.05 crore of pig iron plant revenue in the June 2026 quarter, but no pig iron plant revenue is listed for the September 2026 or September 2025 quarters.

Treasury income was Rs 14.21 crore in the September quarter, compared with Rs 13.66 crore in the preceding quarter and Rs 14.46 crore a year earlier. Income from services, net of expenses, was a loss of Rs 10.04 crore, improving from a Rs 14.03 crore loss in June 2026 but reversing a Rs 20.98 crore positive contribution in the September 2025 quarter.

KIOCL’s total expenses were Rs 197.26 crore in the September 2026 quarter, compared with Rs 196.41 crore in the preceding quarter, while total revenue increased by Rs 22.50 crore. Power and fuel costs rose to Rs 96.02 crore from Rs 60.94 crore sequentially, and consumable stores, spares and additives increased to Rs 38.84 crore from Rs 32.89 crore.

What changed in KIOCL’s pellet plant capital employed?

KIOCL’s pellet plant capital employed was Rs 88.64 crore at September 30, 2026, up from Rs 84.40 crore at June 30, 2026 but below Rs 127.62 crore at September 30, 2025. The filing defines capital employed as segment assets less segment liabilities.

Pellet-plant assets stood at Rs 532.90 crore at September 30, 2026, compared with Rs 569.45 crore at June 30, 2026 and Rs 630.70 crore a year earlier. Its segment liabilities were Rs 444.26 crore, lower than Rs 485.05 crore in June 2026 and Rs 477.20 crore in September 2025, explaining why capital employed increased sequentially despite lower segment assets.

The financial results were unaudited for the quarter and half year ended September 30, 2026. KIOCL’s statutory auditor, Tej Raj & Pal, said on November 6, 2026 that nothing had come to its attention to indicate the standalone results failed to disclose information required under listing regulations or contained a material misstatement.

Conclusion

KIOCL’s September-quarter disclosure shows a change in the pellet plant’s reported segment result: a Rs 2.81 crore profit replaced losses of Rs 14.54 crore in the preceding quarter and Rs 48.76 crore a year earlier. However, plant revenue fell from Rs 59.81 crore to Rs 7.54 crore sequentially, while service-contract revenue was Rs 172.26 crore in the September 2026 quarter.

The unresolved issue is what caused the pellet plant to return to profit while revenue declined by Rs 52.27 crore sequentially. KIOCL’s September 30, 2026 filing provides no production, sales-volume, pricing, utilisation or forward target for the pellet plant, so subsequent disclosures would need to address those operating measures to clarify whether the Rs 2.81 crore result can continue.