KSE posts Rs 1.2302 crore quarterly loss despite higher revenue

KSE Limited reported a Rs 1.2302 crore loss for the quarter ended 30 September 2026, compared with a Rs 32.8718 crore profit a year earlier, as the animal-feed division moved to a Rs 7.4257 crore segment loss despite revenue from operations rising to Rs 466.1535 crore.

Why did KSE report a loss despite higher revenue?

KSE reported a loss because total expenses exceeded total income in the September 2026 quarter. Total income increased to Rs 468.5625 crore from Rs 431.0209 crore in the quarter ended 30 September 2025, while total expenses rose to Rs 469.4573 crore from Rs 387.2759 crore. Profit before exceptional items and tax consequently fell to Rs 89.48 lakh from Rs 43.7450 crore.

KSE recorded a current-tax charge of Rs 1.50 crore and a deferred-tax credit of Rs 1.1646 crore for the latest quarter. The resulting loss after tax was Rs 1.2302 crore, versus profit after tax of Rs 32.8718 crore a year earlier, when the company had reported profit before tax of Rs 43.7450 crore.

KSE’s basic and diluted earnings per share were negative Rs 0.384 in the September 2026 quarter, against positive Rs 10.272 in the year-earlier quarter. Total comprehensive income was negative Rs 96.76 lakh, compared with positive comprehensive income of Rs 33.0755 crore in the comparable 2025 quarter.

Which KSE segment drove the profit reversal?

KSE’s animal-feed division drove the largest change, reporting a Rs 7.4257 crore segment loss in the September 2026 quarter after a Rs 14.1408 crore segment profit a year earlier. Its revenue nevertheless increased to Rs 389.7582 crore from Rs 348.9786 crore, making animal feed the largest reported business segment by revenue.

KSE’s oil-cake processing division remained profitable, but its segment result fell to Rs 7.3083 crore from Rs 29.6368 crore in the corresponding quarter. Revenue from the division increased to Rs 121.8343 crore from Rs 108.7579 crore, showing that higher sales were accompanied by a substantially lower reported segment result.

KSE’s dairy division narrowed its loss to Rs 25.84 lakh from Rs 1.7192 crore in the September 2025 quarter. Dairy revenue rose to Rs 16.7036 crore from Rs 14.1897 crore, while the improvement in dairy did not offset the declines in animal feed and oil-cake processing.

Total segment revenue before inter-segment transfers increased to Rs 528.2961 crore from Rs 471.9262 crore. Inter-segment transfers increased to Rs 62.1426 crore from Rs 44.5321 crore, leaving revenue from operations of Rs 466.1535 crore. Aggregate segment results were a Rs 37.58 lakh loss, against a Rs 42.0584 crore profit a year earlier, before finance costs, interest income and unallocable items.

How did KSE’s costs move in the September quarter?

KSE’s cost of materials consumed rose to Rs 391.6309 crore in the September 2026 quarter from Rs 324.6294 crore a year earlier. Purchases of stock-in-trade increased to Rs 33.3388 crore from Rs 28.0575 crore, while other expenses rose to Rs 30.8431 crore from Rs 25.6920 crore.

KSE’s employee-benefit expense increased to Rs 18.2920 crore from Rs 17.1410 crore, and finance costs rose to Rs 67.23 lakh from Rs 65.11 lakh. Depreciation and amortisation expense declined to Rs 1.8602 crore from Rs 2.1561 crore, while inventory changes reduced expenses by Rs 7.1800 crore compared with a Rs 11.0338 crore reduction a year earlier.

KSE’s revenue from operations also rose sequentially from Rs 453.6688 crore in the quarter ended 30 June 2026 to Rs 466.1535 crore in the September quarter. However, total expenses increased from Rs 456.3995 crore to Rs 469.4573 crore, and profit after tax changed from a Rs 94.43 lakh profit in June to a Rs 1.2302 crore loss in September.

What does KSE’s half-year result show?

KSE recorded a Rs 28.59 lakh loss for the half year ended 30 September 2026, compared with a Rs 71.4261 crore profit in the half year ended 30 September 2025. Revenue from operations increased to Rs 919.8223 crore from Rs 843.3908 crore, but total expenses rose to Rs 925.8568 crore from Rs 755.8452 crore.

KSE reported profit before exceptional items and tax of Rs 6.80 lakh for the latest half year, against Rs 95.7091 crore a year earlier. An exceptional income of Rs 47.17 lakh, recognised in the June 2026 quarter, took half-year profit before tax to Rs 40.37 lakh.

KSE said the exceptional income was a further insurance claim for flood-related damage to raw materials in Tamil Nadu during financial year 2023-24. The company had already received Rs 2.5075 crore for those damages in financial year 2024-25.

For the half year, animal feed recorded a Rs 4.3538 crore segment loss after a Rs 35.8691 crore profit a year earlier. Oil-cake processing segment profit fell to Rs 3.5648 crore from Rs 59.5225 crore, while dairy moved to a Rs 35.44 lakh segment profit from a Rs 4.0359 crore loss.

What is KSE’s land litigation and impairment provision?

KSE disclosed a Rs 1.81 crore provision for probable impairment relating to a disputed 25% undivided ownership interest in land acquired during August 2021. The company acquired about 24.68 acres at Muthalamada No.1 Village, Chammanampathy, Chittur Taluk in Palakkad district for a total capitalised cost of about Rs 7.24 crore.

The proceedings concern the antecedent title deed for the property, and an interim injunction restraining its alienation remains in force. KSE said civil and criminal proceedings involving the 25% ownership interest were initiated after the acquisition and remain pending before the relevant forums.

KSE said management assessed the probable impairment at 25% of the carrying value attributable to the disputed interest, based on legal opinion obtained during the quarter and available data. The statutory auditor drew attention to the matter without modifying its limited-review conclusion, and KSE said it would reassess the impairment as proceedings, legal advice and valuation evidence develop.

Conclusion

KSE’s September-quarter result shows that higher revenue did not translate into profit as materials costs, other costs and weaker segment outcomes lifted expenses above income. The animal-feed business shifted from a Rs 14.1408 crore profit to a Rs 7.4257 crore loss, while oil-cake processing profit also declined from Rs 29.6368 crore to Rs 7.3083 crore.

The next disclosed matter to watch is KSE’s reassessment of the Rs 1.81 crore land impairment provision, which depends on developments in the pending proceedings, legal advice and valuation evidence. KSE’s future results will also show whether animal feed and oil-cake processing recover after the half year ended 30 September 2026 produced a Rs 28.59 lakh loss.