Press Release
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Kerala Ayurveda reported consolidated revenue of Rs. 108.7 Crs in Q3 YTD Dec'25, up 20.7% YoY, driven by 40% growth in India E-Product and 27% growth in Health Services businesses. Adjusted EBITDA came in at Rs. 6.3 Crs (positive), though reported PAT fell to Rs. 1.65 Crs from Rs. 6.24 Crs last year due to higher interest and depreciation costs. The company guided for Rs. 150 Crs FY26 revenue at 23% growth. Two key corporate actions were announced: (1) promoter group will convert Rs. 20 Crs of debt into equity via preferential shares at Rs. 327.99 (a ~32% premium to market), and (2) KAL plans to acquire the remaining 26% stake in subsidiary Ayurvedagram Heritage Wellness Centre (AHWCPL, Rs. 13.5 Crs FY25 revenue) for Rs. 10 Crs via preferential issue, making it a wholly-owned subsidiary with plans to later merge it.
The 20%+ revenue growth and positive EBITDA signal improving business momentum, though bottom-line pressure from interest and depreciation remains a concern. The promoter's debt-to-equity conversion at a premium shows strong confidence and strengthens the balance sheet, while making AHWCPL a wholly-owned subsidiary consolidates a profitable wellness business, both potentially positive for long-term shareholders. Investors should watch for EGM approval on 14th March and any share price impact from the preferential allotments.