Kiri Industries Limited – Investor Presentation Summary
Key Operational Highlights
- Improved industry pricing environment with stronger realizations across key dye intermediates, particularly H-Acid, supported by firm market prices
- Vertically integrated manufacturing model spanning Basic Chemicals → Dye Intermediates → Dyes
- Global footprint across 50+ countries and seven continents serving apparel, hosiery, automotive textiles, carpets, leather, paper, home furnishings, and industrial fabrics
- Zero Effluent operations with environmentally responsible manufacturing
Key drivers of operational performance: Improved pricing for H-Acid and Vinyl Sulphone products
Segment-wise Performance
- Standalone revenue from operations increased 48% YoY to ₹288.18 crore in Q2-FY27
- Material margin expanded to 29.1% from 26.4% in Q2-FY26
- Share of profit from Lonsen Kiri Chemical Industries Limited stood at ₹162 million during Q2-FY27
Explanation of significant changes in segment performance: Growth driven by improved realizations across key product categories particularly H-Acid and Vinyl Sulphone
Financial Highlights
Revenue: ₹2,882 million (Standalone Q2-FY27), ₹5,835 million (Standalone H1-FY27)
EBITDA: ₹41 million (Standalone Q2-FY27), ₹214 million (Standalone H1-FY27)
PAT: ₹(227) million loss (Standalone Q2-FY27), ₹2,475 million profit (Standalone H1-FY27)
EPS: ₹(3.50) per share (Standalone Q2-FY27), ₹38.11 per share (Standalone H1-FY27)
Margins: EBITDA margin 1.42% (Standalone Q2-FY27), 3.67% (Standalone H1-FY27); PAT margin 42.42% (Standalone H1-FY27)
YoY/QoQ comparison: Revenue increased 48.1% YoY but declined 2.4% QoQ in Q2-FY27
Drivers of financial performance: Stronger pricing for H-Acid and Vinyl Sulphone, treasury operations generated realized gains of ₹238 million (consolidated) and ₹229 million (standalone) in Q2-FY27
Key Risks: Higher fuel, power and effluent treatment costs impacting operational EBITDA
Geographical Revenue Split
Not Specified
Balance Sheet Snapshot
Net Debt/Equity: Not explicitly stated, but borrowings significantly reduced with FY26 standalone borrowings at ₹138 million (current ₹102 million + non-current ₹36 million)
Reserves: Other equity stood at ₹66,556 million (Standalone H1-FY27)
Current Assets/Liabilities: Current assets ₹43,965 million vs current liabilities ₹3,218 million (Standalone H1-FY27)
Working Capital/Leverage Metrics: Strong liquidity position with cash and cash equivalents of ₹3,668 million and low finance costs of ₹9 million (consolidated Q2-FY27)
Financial Health Insights: Robust balance sheet strengthened by USD 689 million proceeds from DyStar resolution
Capex & Cash Flow Health
Capital Expenditure: Copper complex total project cost approximately ₹8,100 crore, fertilizer project estimated at ₹3,600 crore, renewable power project and jetty expected at ₹1,600 crore
Free Cash Flow: Not explicitly stated
Operating Cash Flow: Not explicitly stated
Net Debt Movement: Finance cost reduced dramatically to ₹9 million (consolidated Q2-FY27) from ₹605 million (Q2-FY26)
Investment Rationale: Focus on capacity expansion into copper smelting, refining, and downstream products including copper tubes, copper foil, and copper rods
Strategic & R&D Initiatives
Investments in Innovation: Diversification into copper smelting and fertilizer production through subsidiaries Indo Asia Copper Limited and IndoAsia Agrotech Fertilizers Limited
Expected impact on growth: Projected to deliver IRR of ~25% and expected ROE of 22-30%
Strategic Rationale: Capturing opportunities from India's rising copper demand and electrification, strong import substitution opportunity with structural domestic deficit of ~1 million tonnes
Industry Trends & Business Environment
Macro/Industry Trends: Copper essential for power transmission, renewable energy, electric vehicles, and industrial infrastructure; electric vehicles require 2-3x more copper than internal combustion engine vehicles; rising electrification across sectors structurally increases copper intensity
Impact on Company: Positioned to benefit from India's high-growth market with structural supply constraints and persistent demand-supply gap
Management Commentary & Growth Outlook
Strategic Outlook: Entering a new phase focused on long-term growth through diversification into copper and fertilizer manufacturing while continuing to strengthen specialty chemicals platform
FY Guidance: Integrated Copper and Fertilizer complex scheduled for phased commissioning commencing in H1 FY28
Market Share Targets: Not specified
Risks and Opportunities: Long-term sourcing from global mining regions including South America (Chile and Peru), Australia, Philippines, Democratic Republic of Congo; diversified sourcing ensures supply reliability
ESG Updates
- Strong focus on environmentally responsible manufacturing
- Zero Effluent operations
- By-product utilization: Sulfur dioxide gases from smelter to be used for producing sulfuric acid for fertilizer production
- Recovery of precious metals such as gold, silver, and selenium during refining process
Project Update
- Procurement of major plant and equipment has advanced substantially with equipment deliveries commencing at site
- Civil, foundation and structural works progressing across key operating units
- Development of supporting infrastructure including dedicated jetty, desalination facilities and raw material handling systems progressing as planned
- Construction work commenced with 36-month completion timeline commencing from 1st October 2025
- Equity contribution of approximately ₹4,000 crore planned, with ₹1,036 crore infused in September 2024