Kiri Industries Q1 FY27 PAT at INR 270 Crore

Revenue from operations: INR 295 crore, representing 63% year-on-year growth
Growth was primarily realization-led, supported by improved average selling realizations across dyes, dyes intermediates, and basic chemicals
EBITDA: INR 17 crore
EBITDA margin: 5.86%
Other income: INR 284 crore, primarily comprising earnings from treasury management
Profit after tax: INR 270 crore

Revenue from operations: INR 312 crore, representing 55% year-on-year growth
Consolidated EBITDA (including share of profit of associates and joint ventures): INR 37 crore
EBITDA margin: 7.84%
Profit after tax: INR 270 crore
Other income: INR 286 crore, primarily comprising interest income on inter-corporate loans and realized/unrealized gains on treasury transactions
Share of profit from associates: INR 21 crore (30% increase over preceding quarter), primarily from Lonsen Kiri (40% equity interest)

Operating environment improved during Q1 FY27 with pricing strengthening across Reactive Dyes, Vinyl Sulphone, H-Acid, and certain basic chemicals
Improvement supported by tighter global supply, higher efficiency, and environmental compliance measures in China
Input cost pressures persisted with major raw materials linked to crude oil prices
Material margin improved to 31.9% (vs. 23.5% in Q1 FY26 and 20.4% in Q4 FY26)
Improvement driven by favorable pricing differential with ASPs rising faster than raw material prices
Average capacity utilization: 60%

Project progressed from design stage to structured construction phase
Orders placed for several long-lead mechanical, electrical, and utility packages
Finalization of remaining major packages ongoing
Key enabling perspectives advancing in captive jetty, desalination facility, dedicated raw material conveying system, and power infrastructure
Engagement with international mining companies and global trading houses for long-term sourcing of copper concentrate and rock phosphate

Copper tube plant: Targeted commissioning Q1 FY28 (35 KT capacity)
Copper rod plant: Targeted commissioning August-September 2027 (2.25 lakh tons capacity)
Scrap melting furnace: Targeted commissioning December 2027-January 2028
Part refinery (anodes to cathode): 1.75 lakh tons capacity
Copper foil business: Trial production (5,000 KT) targeted in 18-20 months (March 2028), with complete system built for 10 KT
Full facilities (smelter, sulphuric acid plant, fertilizers): Targeted operational Q1 2029

Total capital requirement: Approximately INR 12,000 crore for Phase 1
Additional requirements for supporting infrastructure
Capital deployed to date: INR 1,400 crore (all equity)
Financial closure: Not yet achieved, but more than 50% debt commitments received
Debt repayment expected to start in 2029 considering moratorium period

Company substantially free of external debt following repayment of borrowings at Claronex Holdings Pte. Ltd.
Finance costs reduced sharply
Treasury activities include inter-corporate loans and investment management

India's copper consumption: 1.8 million tons annually, with two-thirds met by imports
Sales strategy focused on import substitution rather than market creation
Quality approval process required but sales not considered a constraint
Marine jetty development crucial for bulk imports handling and operational cost optimization

Medium to long-term outlook positive supported by steady textile demand and tighter global availability
Company positioned as one of largest global producers of H-Acid
Existing capacity provides headroom for rising demand without significant additional CAPEX
Focus on maintaining pricing discipline and improving capacity utilization to 70%-75% during the year

Equity infusion option available and tested (INR 230 crore recently raised in Indo Asia)
Trade-off between current dilution vs. potential value creation post-project execution
Equity financing remains as Plan B if required