KLRF FY26 profit rebounded sevenfold after FY25 collapse

KLRF lifted profit after tax (PAT) to Rs 8.09 crore in FY26 from Rs 1.15 crore in FY25, a sevenfold recovery after the prior year’s earnings decline. Earnings before interest, tax, depreciation and amortisation (EBITDA) rose to Rs 21.79 crore from Rs 16.88 crore, while total income declined to Rs 412.99 crore.

How did KLRF’s FY26 profit compare with FY25?

KLRF’s FY26 PAT was Rs 8.09 crore, compared with Rs 1.15 crore in FY25, while profit before tax (PBT) rose to Rs 5.55 crore from Rs 1.54 crore. Earnings per share (EPS) increased to Rs 8.95 in FY26 from Rs 1.27 in FY25. The presentation’s five-year record shows that FY26 profit rose more sharply than reported income.

The operating improvement was also visible before depreciation and finance costs. KLRF’s EBITDA increased by Rs 4.91 crore to Rs 21.79 crore in FY26, and EBITDA margin rose 1.4 percentage points to 5.3% from 3.9% in FY25. Gross profit increased to Rs 104.05 crore from Rs 101.27 crore, while gross margin recovered to 25.3% from 23.6%.

What changed in KLRF’s revenue and operating margin?

KLRF’s total income fell by Rs 15.81 crore to Rs 412.99 crore in FY26 from Rs 428.80 crore in FY25. Branded net revenue declined to Rs 410.86 crore from Rs 426.59 crore, while other income decreased to Rs 2.13 crore from Rs 2.21 crore. The FY26 profit recovery was therefore reported alongside lower total income.

Material cost declined by Rs 18.59 crore to Rs 308.94 crore in FY26 from Rs 327.53 crore in FY25. Cost of materials consumed was Rs 301.95 crore, against Rs 317.68 crore a year earlier, and purchases of stock-in-trade fell to Rs 5.60 crore from Rs 11.67 crore. These movements coincided with a 1.7-percentage-point gross-margin recovery to 25.3%, although the margin remained below 27.2% in FY23 and 31.7% in FY22.

KLRF’s operating expenses moved in different directions during FY26. Employee expenses rose to Rs 20.54 crore from Rs 18.50 crore, while other expenses decreased to Rs 61.71 crore from Rs 65.89 crore. Depreciation increased to Rs 7.21 crore from Rs 6.80 crore and finance cost increased to Rs 9.03 crore from Rs 8.54 crore, leaving PBT at Rs 5.55 crore.

How volatile have KLRF’s earnings been since FY22?

KLRF’s income expanded from Rs 277.12 crore in FY22 to Rs 411.16 crore in FY23, then stayed between Rs 411.16 crore and Rs 428.80 crore through FY26. PAT moved from Rs 7.53 crore in FY22 to Rs 10.10 crore in FY23, Rs 7.80 crore in FY24, Rs 1.15 crore in FY25 and Rs 8.09 crore in FY26. Earnings were more variable than income after FY23.

EBITDA peaked at Rs 28.25 crore in FY23, declined to Rs 26.53 crore in FY24 and Rs 16.88 crore in FY25, before recovering to Rs 21.79 crore in FY26. The corresponding EBITDA margins were 6.9%, 6.4%, 3.9% and 5.3%. FY26 reversed part of the FY25 margin decline but did not return EBITDA or margin to the FY23 level.

PBT followed a similar pattern at lower levels. KLRF reported PBT of Rs 14.19 crore in FY23 and Rs 10.51 crore in FY24, before it fell to Rs 1.54 crore in FY25 and recovered to Rs 5.55 crore in FY26. Finance cost was Rs 9.03 crore in FY26, compared with Rs 7.75 crore in FY23, while depreciation rose to Rs 7.21 crore from Rs 6.31 crore.

What do KLRF’s segments and balance sheet show?

KLRF’s Food Division reported Q2 FY27 revenue of Rs 87.27 crore, up from Rs 77.72 crore in Q2 FY26, while Engineering Division revenue increased to Rs 28.84 crore from Rs 26.65 crore. Food Division profit before interest and tax (PBIT) rose to Rs 1.16 crore from Rs 0.26 crore, whereas Engineering Division PBIT rose to Rs 3.53 crore from Rs 3.38 crore. Food Division recorded the larger increase in PBIT, while Engineering Division retained the higher PBIT amount.

Capital employed in the Food Division was Rs 54.03 crore in Q2 FY27, compared with Rs 52.39 crore in Q2 FY26. Engineering Division capital employed increased to Rs 28.58 crore from Rs 21.97 crore. At the company level, H1 FY27 total revenue was Rs 210.44 crore versus Rs 207.27 crore in H1 FY26, but EBITDA decreased to Rs 12.96 crore from Rs 14.10 crore and EBITDA margin declined to 6.2% from 6.9%.

KLRF’s net worth increased to Rs 74.56 crore in FY26 from Rs 66.83 crore in FY25, while the debt-equity ratio increased to 1.10 from 1.01. At H1 FY27, shareholders’ funds were Rs 78.06 crore and total assets were Rs 224.61 crore, compared with Rs 193.37 crore at FY26-end. Capital work in progress rose from Rs 3.94 crore at FY26-end to Rs 29.38 crore at H1 FY27, while non-current and current borrowings together were Rs 105.83 crore.

Conclusion

KLRF’s FY26 results show that PAT, EBITDA and gross margin recovered after FY25, despite a decline in total income. PAT rose from Rs 1.15 crore to Rs 8.09 crore as gross profit improved and other expenses fell, but EBITDA and PBT remained below their FY23 levels.

The unresolved issues are whether KLRF can reverse the H1 FY27 EBITDA-margin decline to 6.2% while revenue grows, and how the Rs 29.38 crore of capital work in progress will translate into operating assets. Borrowings of Rs 105.83 crore at H1 FY27 are also a reported balance-sheet measure to track alongside this investment build-out.