Kusumgar profit rises to Rs 40.60 crore in September quarter

Kusumgar Limited, referred to as Kusumgar, reported consolidated profit after tax of Rs 40.60 crore for the quarter ended 30 September 2026, up from Rs 10.92 crore a year earlier, as revenue from operations reached Rs 250.94 crore. The board approved the unaudited results on 5 November 2026.

How did Kusumgar perform in the September 2026 quarter?

Kusumgar’s September 2026 revenue from operations was Rs 250.94 crore, compared with Rs 138.78 crore in the corresponding September 2025 quarter and Rs 247.25 crore in the preceding June 2026 quarter. Total income rose to Rs 255.05 crore from Rs 140.74 crore a year earlier, while profit before tax increased to Rs 52.82 crore from Rs 12.98 crore.

Profit after tax was Rs 40.60 crore in the September quarter, versus Rs 10.92 crore in September 2025. The result was below the Rs 42.65 crore recorded in the June 2026 quarter, even though revenue increased by Rs 3.69 crore sequentially. September-quarter income-tax expense was Rs 12.22 crore, compared with Rs 15.20 crore in the preceding quarter.

The September 2025 comparative figures were prepared by management, reviewed by the audit committee and approved by the board, but were not subjected to review by Kusumgar’s statutory auditors. For the 2026 consolidated statement, the auditor reported an unmodified review conclusion on 5 November 2026, stating that nothing had come to its attention suggesting a material misstatement.

What changed in Kusumgar’s costs and profitability?

Kusumgar’s total expenses rose to Rs 202.23 crore in the September 2026 quarter from Rs 127.76 crore a year earlier. Cost of materials consumed increased to Rs 137.26 crore from Rs 65.48 crore, while other expenses rose to Rs 53.36 crore from Rs 29.64 crore. The increase in total expenses was smaller than the Rs 114.31 crore year-on-year increase in total income.

Changes in inventories of finished and semi-finished fabric produced a Rs 29.55 crore credit in the September quarter, compared with a Rs 7.81 crore credit in September 2025. Employee-benefits expense rose to Rs 22.72 crore from Rs 20.53 crore, depreciation and amortisation increased to Rs 13.03 crore from Rs 10.97 crore, and finance costs declined to Rs 5.41 crore from Rs 6.83 crore.

Compared with June 2026, materials consumed increased from Rs 111.93 crore to Rs 137.26 crore, while other expenses fell from Rs 60.14 crore to Rs 53.36 crore. The inventory-related credit widened from Rs 21.83 crore in June. These movements occurred alongside a Rs 5.03 crore sequential decline in profit before tax.

Kusumgar reported basic earnings per share of Rs 3.87 and diluted earnings per share of Rs 3.79 for the September 2026 quarter; neither measure is annualised. Basic earnings per share was Rs 1.08 in the September 2025 quarter and Rs 4.18 in June 2026. Kusumgar reports one operating segment, manufacturing of technical textile fabrics, and therefore did not provide separate segment results.

What do Kusumgar’s six-month results show?

Kusumgar reported revenue from operations of Rs 498.19 crore for the six months ended 30 September 2026, compared with Rs 261.25 crore in the corresponding prior-year period. Profit before tax increased to Rs 110.67 crore from Rs 22.30 crore, and profit after tax rose to Rs 83.25 crore from Rs 17.57 crore.

Total income for the six months was Rs 503.67 crore, against Rs 267.09 crore a year earlier, while total expenses increased to Rs 393.00 crore from Rs 244.79 crore. Materials consumed was Rs 249.19 crore, compared with Rs 116.39 crore, and the credit from changes in inventories widened to Rs 51.37 crore from Rs 16.83 crore.

Six-month tax expense was Rs 27.42 crore, compared with Rs 4.73 crore in the corresponding period of 2025. Total comprehensive income reached Rs 84.03 crore, versus Rs 17.72 crore. Other comprehensive income for the six months was Rs 78.80 lakh, including foreign-currency translation effects and remeasurement gains net of tax.

Kusumgar’s shares were listed on BSE Limited and the National Stock Exchange of India Limited on 15 July 2026. Its initial public offer in the September quarter consisted entirely of an offer for sale of 1,55,21,350 equity shares at Rs 419 each, with an employee price of Rs 380. Because selling shareholders offered the shares, Kusumgar received no proceeds from the offer.

How did Kusumgar’s balance sheet and cash flow move?

Kusumgar’s total assets stood at Rs 1,003.15 crore at 30 September 2026, compared with Rs 905.07 crore at 31 March 2026. Inventories increased to Rs 268.84 crore from Rs 194.86 crore, while trade receivables declined to Rs 220.37 crore from Rs 233.28 crore. Cash and cash equivalents increased to Rs 31.03 crore from Rs 26.83 crore.

Total equity rose to Rs 592.65 crore at 30 September from Rs 502.95 crore at the March year-end, while total liabilities increased to Rs 410.51 crore from Rs 402.12 crore. Non-current borrowings fell to Rs 70.13 crore from Rs 85.12 crore, but current borrowings increased to Rs 185.53 crore from Rs 138.46 crore.

Net cash generated from operating activities was Rs 24.89 crore in the six months ended 30 September 2026, compared with Rs 39.38 crore in the corresponding prior-year period. Operating profit before working-capital changes was Rs 157.25 crore, but the cash-flow statement recorded a Rs 73.98 crore inventory increase and Rs 37.20 crore of income tax paid.

Investing activities used Rs 37.26 crore in the six months, compared with Rs 159.98 crore used a year earlier. Payments for property, plant and equipment, capital advances and capital creditors were Rs 44.12 crore. Financing activities generated Rs 16.13 crore, compared with Rs 135.74 crore in the prior-year period, contributing to a Rs 3.76 crore net increase in cash and cash equivalents.

What corporate developments did Kusumgar disclose?

Kusumgar incorporated wholly owned subsidiary Kusumgar Aerospace Private Limited on 8 April 2026, with the subsidiary intended to manufacture technical textiles. The group’s consolidated financial statements include four wholly owned subsidiaries, and the three subsidiaries reviewed by other auditors reported combined September-quarter revenue of Rs 3.68 crore before consolidation adjustments.

Kusumgar also disclosed a non-binding term sheet with Certoplast Holding GmbH to set up a tape-manufacturing joint venture in India. Kusumgar and Certoplast are proposed to hold 50.1% and 49.9%, respectively, of the joint venture’s paid-up equity capital, but the class of shares, issue price and other terms remain subject to negotiation and definitive agreements.

On 16 June 2026, Kusumgar’s board approved conversion of 35,01,372 compulsorily convertible preference shares into an equal number of equity shares with a face value of Rs 1 each. The company had granted 21,87,782 options under the Kusumgar ESOP 2024 by 30 September 2026 and said it had sought in-principle stock-exchange approvals before listing shares arising from exercised options.

Conclusion

Kusumgar’s reported figures show a substantial year-on-year increase in September-quarter revenue and profit, alongside a sequential rise in revenue but lower profit before tax and profit after tax than in June 2026. At the same time, inventories rose by Rs 73.98 crore from 31 March 2026, while six-month operating cash generation was Rs 24.89 crore.

The next disclosed developments to watch are the negotiation of definitive agreements for the proposed 50.1:49.9 tape-manufacturing joint venture with Certoplast and the operational development of Kusumgar Aerospace Private Limited, incorporated on 8 April 2026. Kusumgar has not disclosed the joint venture’s issue price, capital structure or implementation timetable.