BSEKenrik Industries LtdHighNeutral
Announced Fri, 14 Nov · 19:43 IST

Result for the quarter and half year ended September 30,2025

Pat Growth 25pctEbitda Margin ExpansionNegative Operating CashflowResults View source PDF

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AI summary

Kenrik Industries, a BSE SME-listed gold and silver bullion/ornaments trader, reported H1 FY26 revenue of ₹22.13 crore, up marginally (≈1.5%) from ₹21.80 crore in H1 FY25. However, profit after tax jumped to ₹58.45 lakhs from ₹36.25 lakhs, a ~61% YoY increase, driving EPS to ₹0.50 versus ₹0.40. Profit growth came mainly from lower other expenses and improved operating efficiency, as PBT margin expanded from ~2.5% to ~3.5%. The company recently listed on BSE SME in May 2025 via an ₹8.745 crore IPO, which has strengthened its equity base to ₹22.72 crore. The statutory auditor (VSSB & Associates) issued an unqualified limited review report with no qualifications.

Likely market impact

Profitability improved sharply on a like-for-like basis, which is positive for shareholders. However, operating cash flow turned deeply negative at -₹9.09 crore in H1 FY26 (vs -₹2.53 crore for full FY25), largely because trade receivables more than doubled to ₹7.18 crore and inventories rose to ₹15.86 crore — a red flag for a trading business. The company is essentially funding working capital from IPO proceeds, so investors should watch receivable collection and cash conversion closely in coming quarters.