Kothari Industrial Corporation Q4 FY26 results: net loss of ₹31.98 crore

How did Kothari Industrial Corporation perform in Q4 FY26?

Kothari Industrial Corporation’s consolidated revenue from operations was ₹44.52 crore in Q4 FY26, down 12.0% from ₹50.61 crore in Q3 FY26. Total expenses rose 27.1% to ₹59.62 crore, while other income was ₹1.04 crore. The company reported a net loss of ₹31.98 crore for the quarter, compared with a net loss of ₹18.54 crore in the preceding quarter.

EBITDA moved from ₹6.31 crore in Q3 FY26 to a loss of ₹6.21 crore, while the EBITDA margin fell 26.4 percentage points to -13.9%. Loss before tax widened from ₹4.03 crore to ₹14.07 crore, and the PAT margin fell 35.2 percentage points to -71.8%. Basic EPS was ₹2.96, compared with ₹1.72 in Q3 FY26. No year-ago quarter figures were provided.

On the standalone basis, Q4 FY26 revenue was ₹44.52 crore and the company reported a net loss of ₹14.07 crore. Standalone revenue was up 68.5%, while the net loss before the associate-related effect was ₹13.02 crore. The company also revised its consolidated results on 3 June 2026 to include the accounting impact of its 30% stake in an associate company; the omission was described as inadvertent and unintentional.

What do the balance sheet and cash flow show?

At 31 March 2026, consolidated total assets were ₹311.12 crore, against ₹311.26 crore on 30 September 2025. Total equity fell to ₹231.34 crore from ₹271.5 crore, inventories rose to ₹17.02 crore from ₹14.47 crore, and trade receivables increased to ₹34.24 crore from ₹27.33 crore. Trade payables were ₹10.02 crore, compared with ₹19.06 crore previously.

Consolidated borrowings increased to ₹57.66 crore from ₹11.74 crore, while cash declined to ₹10.94 crore from ₹35.34 crore. For FY26, operating cash flow was ₹144.88 crore, investing cash flow was a negative ₹155.95 crore, and financing cash flow was a negative ₹0.06 crore. No comparable year-earlier cash-flow figures were provided.

How has Kothari Industrial Corporation done over the last 8 quarters?

Revenue rose over the reported period from ₹2.17 crore in Q3 FY24 to a peak of ₹50.61 crore in Q3 FY26, before falling to ₹44.52 crore in Q4 FY26. The latest quarter was therefore lower than the preceding quarter but remained above the levels reported in the earlier listed quarters.

Net profit and margin followed a less consistent path. Profit reached ₹0.27 crore in Q1 FY25, while the largest net loss was ₹31.98 crore in Q4 FY26. The EBITDA margin peaked at 12.5% in Q3 FY26 and bottomed at -361.2% in Q4 FY24, before ending Q4 FY26 at -13.9%.

Which businesses drove the quarter?

Footwear was the largest reported business segment in Q4 FY26, with revenue of ₹25.75 crore and EBIT of a loss of ₹3.21 crore. Fetiliser reported revenue of ₹10.5 crore and EBIT of ₹2.1 crore, while Logistics generated revenue of ₹6.71 crore and an EBIT loss of ₹1.48 crore.

The Drone segment reported revenue of ₹1.34 crore and an EBIT loss of ₹0.06 crore. FMCG reported revenue of ₹0.19 crore and an EBIT loss of ₹0.9 crore, while Others (unallocated) recorded revenue of ₹1.7 crore and an EBIT loss of ₹3.44 crore. Year-ago segment revenue and EBIT figures were not provided.

What else did the company announce?

The board approved the audited standalone and consolidated financial results for the quarter and year ended 31 March 2026 on 31 May 2026. M/s. Ray & Ray, the statutory auditors, issued audit reports with modified opinion on the standalone and consolidated results, and the company enclosed a statement on the impact of the audit qualification.

Independent Director Ravi Kumar Perumal resigned effective from the close of business on 30 May 2026. His resignation letter cited his proposed relocation abroad, while the filing stated that he ceased to be a member of the Audit Committee and Nomination and Remuneration Committee, chairman of the Stakeholders Relationship Committee, and a member of the Risk Management Committee. The board reconstituted those committees and appointed Priya Rao to the relevant roles.

What did the auditors point out?

The statutory auditors issued a qualified opinion on the standalone quarterly and year-to-date results. One basis for qualification was a government subsidy receivable of ₹80 lakhs for which no documentary evidence was produced for verification; the auditors said the balance had been outstanding for more than 8 years, no provision had been made, and they could not comment on its realisability or accounting treatment under Ind AS 20.

The auditors also said direct balance confirmations were not provided for promoters of ₹1.80 crores, trade receivables of ₹33.49 crores, trade payables of ₹23.24 crores, vendor advances of ₹15.06 crores, advances from customers of ₹3.99 crores and other loans payable of ₹52.88 crores. GST input credit of ₹10.41 crores and GST output liability of ₹10.55 crores had not been reconciled, while valuation reports for ₹10.98 crores of inventory were not made available.

The company said it incurred a loss during the quarter but had a business plan for expansion, plans for additional financing and adequate financial resources to continue operations for the foreseeable future. It therefore prepared the financial statements on a going concern basis. The report also recorded unsecured loan facilities of ₹34 crores and ₹2 crores from two lenders at 24% p.a. for business operations.

How did Kothari Industrial Corporation shares react?

After the filing appeared after market, the stock was unchanged after 5 minutes, up 11.3% after 15 minutes and up 17.3% after 30 minutes from the price at publication. On the reaction day, the stock closed 1.2% below its previous close of ₹161.99, compared with a 2.7% median fall for the industry, a relative performance of 1.4 percentage points.

How did other Leather And Leather Products companies do?

Eight other Leather And Leather Products companies that had filed for the quarter were compared. Their median revenue growth was -13.9%, while Kothari Industrial Corporation’s revenue fell 12.0% from the previous quarter. The available peer data do not provide the count of companies whose revenue grew faster or slower than this company.