Kamdhenu Limited submitted the transcript of its Q4 and FY26 earnings conference call held on May 29, 2026, pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The call was a virtual audio meeting open to public and all investors/shareholders.

Management Participants

  • Mr. Satish Agarwal - Chairman and Managing Director
  • Mr. Harish Agarwal - Group Chief Financial Officer

FY26 Performance Highlights

Financial Performance:

  • Profit Before Tax (PBT): ₹106 crores (vs. ₹80 crores in FY25), representing 31% YoY growth
  • Profit After Tax (PAT): ₹78 crores (vs. ₹61 crores in FY25), representing 29% YoY growth
  • PBT Margin: 13.8% for FY26
  • Total Revenue: ₹763 crores (vs. ₹747 crores in FY25), 2% YoY growth
  • Royalty Income: ₹175 crores (vs. ₹139 crores in FY25), 25% YoY growth
  • Return on Capital Employed (ROCE): 26.8%
  • Return on Equity (ROE): 19.8%
  • Debt-free status maintained as of March 31, 2026

Operational Performance:

  • Total Sales Volume: 39 lakh metric tons, 10% YoY growth
  • Franchisee Volume: 37.9 lakh metric tons, 10% YoY growth
  • Own Manufacturing Volume: 121,092 metric tons (flat YoY)
  • Average Royalty Realization: ₹435 per metric ton (vs. ₹398 in FY25)
  • Dealer Network: Over 12,500 dealers across India

Dividend Declaration:

  • Board declared dividend of ₹0.40 per share (40% of face value of ₹1 each)

Q4 FY26 Performance

  • Steel Volume (Franchisee): 10.2 lakh metric tons (vs. 9.4 lakh tons in Q4 FY25), 8% YoY growth
  • Steel Volume (Own Manufacturing): 31,624 metric tons (vs. 31,950 tons in Q4 FY25), flat YoY
  • Royalty Income: ₹46 crores (vs. ₹38 crores in Q4 FY25), 19% YoY growth
  • Total Revenue: ₹208 crores (vs. ₹198 crores in Q4 FY25), 5% YoY growth
  • Profit Before Tax: ₹24 crores, 8% YoY growth
  • PBT Margin: 11.7%
  • Profit After Tax: ₹17 crores, 2% YoY growth

Strategic and Operational Updates

  • The company operates a franchisee-based asset-light model with 100+ franchisee units
  • Current franchisee capacity is approximately 5 million metric tons (to be officially compiled and declared in Q1)
  • Regional volume distribution: North (31%), East (35%), West (19%), South (15%)
  • Focus on expanding market share in Southern India
  • Brand premium ranges from ₹1,500 to ₹6,000 per ton across different regions
  • Estimated retail branded market share: 20%

Treasury Management

  • Company holds approximately ₹300 crores in cash
  • Management is framing a treasury policy to reward shareholders
  • No plans for further investments in paint business beyond the ₹20 crore investment made in March 2026 (which increased equity by 4%)

Industry Outlook and Guidance

  • Management expects 10-15% annual increase in royalty rates
  • Targets 10% volume growth annually
  • Indian steel consumption grew high single-digit in FY26
  • Government capital investment outlay of ₹12.2 lakh crores expected to drive construction activity
  • Policy initiatives (National Steel Policy, Make in India, Atmanirbhar Bharat) support structural growth
  • Focus on infrastructure, affordable housing, smart cities, and urban/rural infrastructure development

Raw Material Environment

  • Domestic iron ore prices trended upwards due to strong domestic demand
  • Global iron ore prices remained relatively stable
  • Geopolitical disruptions created volatility in crude oil and natural gas prices
  • Input cost volatility affects margins but franchisee model distributes risk across partner network

Quality Recognition

  • Awarded "The Extraordinaire - Brand: Most Trusted Brand - Infrastructure & Building Materials" at India 2030 Leadership Conclave 2026