Financial Performance Overview
Kaya Limited reported a consolidated net loss of ₹961.73 crore for FY26, significantly widening from the ₹333.68 crore loss in FY25. The company's negative equity position deteriorated to ₹1,527.62 crore as of March 31, 2026 from ₹1,394.50 crore in the previous year. Revenue from operations showed marginal growth at ₹2,224.76 crore (2% increase from ₹2,171.68 crore in FY25), with services contributing 84% of clinic business revenue.
Capital Structure and Fundraising
The company raised ₹750 crore through preferential allotment of 2,090,068 shares to Axana Estates LLP at ₹358.84 per share in August 2025, increasing paid-up equity share capital to ₹151.88 crore. Total borrowings increased to ₹1,632.13 crore, primarily consisting of unsecured loans from promoter directors Harsh Mariwala and Rajendra Mariwala carrying 8% interest with effective rate of 11%. Promoters have provided written commitment for continued financial support for at least 12 months.
Operational Challenges and Costs
Employee benefits expense increased to ₹700.51 crore (from ₹607.63 crore) including significant ESOP charges of ₹47.20 crore. Finance costs rose to ₹356.23 crore while depreciation, amortization and impairment expenses increased to ₹557.80 crore, including ₹117.66 crore impairment on underperforming clinics. The company recognized ₹145.10 crore as exceptional item for Labour Code implementation impact and made ₹235.33 crore provision for EPFO liability disputes.
Corporate Governance and AGM Details
The 23rd Annual General Meeting is scheduled for August 7, 2026 via video conference with key agenda items including:
- Adoption of audited standalone and consolidated financial statements
- Reappointment of Mr. Rajendra Mariwala as director retiring by rotation
- Reappointment of Ms. Vasuta Agarwal as Independent Director for a second five-year term (August 2026 to August 2031)
Remote e-voting will be conducted through NSDL from August 4-6, 2026, with cut-off date for voting rights set at July 31, 2026. The company dissolved its Singapore subsidiary KME Holdings Pte Ltd effective April 22, 2026.
Key Risk Factors
The company faces significant challenges with current liabilities exceeding current assets by ₹1,001.39 crore and negative net worth. Management's going concern assessment relies on continued promoter support, with auditors issuing an unmodified opinion with emphasis on this matter. Ongoing disputes with EPFO regarding various allowances not considered part of wages represent additional contingent liabilities.