KRBL Q2 profit rises 51% as agri earnings lift results

KRBL Limited reported standalone profit after tax of Rs 258.99 crore for the quarter ended September 30, 2026, up 51% year on year, while revenue from operations increased 14% to Rs 1,727.36 crore. The result was led by a Rs 330.74 crore agri segment profit, with higher domestic agri revenue offsetting lower rest-of-world sales.

How did KRBL perform in the September 2026 quarter?

KRBL’s standalone profit after tax rose 50.6% to Rs 258.99 crore in the quarter ended September 30, 2026, from Rs 172.02 crore a year earlier. Profit before tax increased 50.2% to Rs 349.10 crore, while revenue from operations grew 14.3% from Rs 1,511.08 crore to Rs 1,727.36 crore, meaning profit increased faster than revenue.

Total income, including other income, reached Rs 1,768.39 crore, compared with Rs 1,541.14 crore in the September 2025 quarter. Other income increased to Rs 41.03 crore from Rs 30.06 crore, while total expenses rose to Rs 1,419.29 crore from Rs 1,308.71 crore. These are standalone unaudited figures approved by KRBL’s board on November 2, 2026.

KRBL reported basic and diluted earnings per share of Rs 11.31, compared with Rs 7.52 in the corresponding prior-year quarter. Sequentially, however, profit after tax was slightly below Rs 260.63 crore in the quarter ended June 30, 2026, even as revenue from operations increased from Rs 1,495.86 crore.

Which KRBL segment drove the profit increase?

KRBL’s agri segment drove the year-on-year profit increase, with its segment result rising to Rs 330.74 crore from Rs 215.73 crore. The Rs 115.01 crore increase in agri segment profit accounted for most of the Rs 115.70 crore rise in total segment results before tax, which reached Rs 353.42 crore.

Agri segment revenue rose 14.9% to Rs 1,715.34 crore from Rs 1,493.30 crore. Energy revenue increased 28.4% to Rs 74.02 crore from Rs 57.66 crore, but energy segment profit rose by only Rs 0.69 crore to Rs 22.68 crore. After Rs 4.32 crore of other unallocable expenditure, KRBL reported profit before tax of Rs 349.10 crore.

The cost mix changed during the quarter. Cost of materials consumed declined to Rs 559.96 crore from Rs 628.54 crore, while changes in inventories of finished goods and stock-in-trade increased to Rs 593.18 crore from Rs 438.61 crore. Other expenses rose to Rs 180.70 crore from Rs 140.33 crore, and employee benefits expense increased to Rs 55.37 crore from Rs 53.63 crore.

Did KRBL’s Indian and rest-of-world agri revenue move differently?

KRBL’s domestic agri revenue increased 33.8% year on year to Rs 1,418.14 crore, while rest-of-world agri revenue declined 31.5% to Rs 297.20 crore. Domestic sales therefore added Rs 358.49 crore, more than offsetting the Rs 136.45 crore reduction in rest-of-world agri revenue and lifting total agri revenue by Rs 220.04 crore.

For the half year ended September 30, 2026, domestic agri revenue was Rs 2,666.41 crore, up from Rs 2,143.06 crore in the corresponding period. Rest-of-world agri revenue fell to Rs 540.80 crore from Rs 918.81 crore. The Rs 523.35 crore domestic increase exceeded the Rs 378.01 crore overseas decline, taking first-half agri revenue to Rs 3,207.21 crore from Rs 3,061.87 crore.

Energy revenue, reported entirely in India, rose to Rs 139.37 crore in the first half from Rs 117.39 crore a year earlier. Its segment result nevertheless declined to Rs 40.27 crore from Rs 47.13 crore. This contrasted with the agri segment result, which rose to Rs 665.55 crore from Rs 395.71 crore over the same six-month periods.

What did KRBL report for cash flow and its balance sheet?

KRBL generated net cash flow from operating activities of Rs 2,217.96 crore for the half year ended September 30, 2026, compared with Rs 1,854.61 crore in the previous first half. Cash generated from operations rose to Rs 2,333.44 crore from Rs 1,956.92 crore, while income taxes paid increased to Rs 115.48 crore from Rs 102.31 crore.

A Rs 1,510.43 crore decrease in inventories was the largest working-capital contributor, compared with a Rs 1,605.43 crore inventory decrease in the prior-year period. Trade payables increased by Rs 144.70 crore, against Rs 17.01 crore a year earlier, while trade receivables rose by Rs 2.79 crore after a Rs 61.52 crore increase in the corresponding period.

Total assets stood at Rs 7,165.31 crore at September 30, 2026, compared with Rs 6,585.66 crore at March 31, 2026. Inventories fell to Rs 2,203.23 crore from Rs 3,713.66 crore, while current investments increased to Rs 2,885.71 crore from Rs 859.92 crore. Current borrowings were nil at September 30, compared with Rs 130 crore at March 31.

What qualification remains in KRBL’s reviewed results?

KRBL’s statutory auditor retained a qualification relating to the Enforcement Directorate investigation and criminal complaint involving KRBL, KRBL DMCC and one joint managing director. The matter concerns allegations under the Prevention of Money Laundering Act, 2002, including an allegation linked to USD 24.62 million said to have been received by RAKGT during 2008 to 2010.

Walker Chandiok & Co LLP said the report of an independent professional firm appointed by the board provided no conclusive evidence to ascertain the matter’s impact on the financial statements. Pending the regulatory investigation’s completion, the auditor said it could not comment on adjustments that may be required to the standalone statement.

KRBL management stated that it had not identified a need for adjustment or additional disclosure based on present facts, independent legal advice and other available information. The case is pending before the Special Court and is at the initial stage of service of summons on remaining unserved accused. The auditor’s review reports for the year ended March 31, 2026, the June 2026 quarter, and the September 2025 quarter and half year were also qualified on this issue.

Conclusion

KRBL’s September 2026 quarter showed standalone profit growing more rapidly than revenue, led by the agri segment’s Rs 330.74 crore result. Domestic agri revenue growth outweighed the decline in rest-of-world sales, while first-half operating cash flow increased to Rs 2,217.96 crore and current borrowings were reduced to nil.

The next results will show whether domestic agri sales continue to compensate for lower rest-of-world revenue and whether energy segment profit improves after falling to Rs 40.27 crore in the first half. KRBL also disclosed that the Enforcement Directorate matter remains pending before the Special Court, while the auditor’s qualification remains in place pending completion of the regulatory investigation.