Financial Performance Summary

Standalone Results (₹ in Lakhs):

  • Q4 FY26: Net loss of ₹1,407.11 lakhs vs net loss of ₹1,301.82 lakhs in Q4 FY25
  • Full Year FY26: Net loss of ₹3,119.07 lakhs vs net loss of ₹1,616.82 lakhs in FY25
  • Revenue from Operations: ₹17,830.36 lakhs for FY26 vs ₹8,663.59 lakhs in FY25
  • Total Income: ₹18,168.93 lakhs for FY26 vs ₹8,760.23 lakhs in FY25
  • EPS: ₹(2.89) per share for FY26 vs ₹(1.74) per share in FY25

Consolidated Results (₹ in Lakhs):

  • Q4 FY26: Net loss of ₹3,197.50 lakhs
  • Full Year FY26: Net loss of ₹7,218.53 lakhs
  • Revenue from Operations: ₹17,830.36 lakhs for FY26
  • Share of Associate Loss: ₹4,099.46 lakhs for FY26 (₹1,790.39 lakhs for Q4)
  • EPS: ₹(6.68) per share for FY26

Key Financial Metrics

Assets and Liabilities (Standalone as of March 31, 2026):

  • Total Assets: ₹35,211.21 lakhs (vs ₹19,999.53 lakhs in FY25)
  • Non-Current Assets: ₹23,213.92 lakhs (includes Investments: ₹13,896.56 lakhs)
  • Current Assets: ₹11,997.28 lakhs (includes Inventories: ₹1,702.39 lakhs)
  • Equity: ₹27,233.95 lakhs
  • Current Liabilities: ₹6,944.39 lakhs
  • Borrowings: Current maturities of ₹5,288.73 lakhs; Long-term ₹477.16 lakhs

Segment Performance (FY26 Standalone):

  • Fertilizer: Revenue ₹3,196.82 lakhs, Profit ₹383.45 lakhs
  • Footwear: Revenue ₹10,241.38 lakhs, Loss ₹909.81 lakhs
  • Logistics: Revenue ₹2,138.53 lakhs, Loss ₹226.13 lakhs
  • Hotel: Revenue ₹1,684.79 lakhs, Loss ₹953.67 lakhs
  • Drone: Revenue ₹285.41 lakhs, Loss ₹45.06 lakhs

Audit Qualifications and Impact

The statutory auditors, Ray & Ray Chartered Accountants, issued a qualified opinion with six key qualifications:

1. Subsidy Receivable of ₹80 lakhs: Outstanding for over 8 years from government with no documentary evidence provided for verification. Management continues to pursue but made no provision.

2. Lack of Balance Confirmations: Missing confirmations for promoters (₹1.80 crores), trade receivables (₹33.49 crores), trade payables (₹23.24 crores), vendor advances (₹15.06 crores), advances from customers (₹3.99 crores), other loans payable (₹52.88 crores), and related party balances (₹1.44 crores out of ₹15.26 crores).

3. GST Reconciliation Issues: Books show GST input credit of ₹10.41 crores, output liability of ₹10.55 crores, and debit balance of ₹1.41 crores in GST payable account, but no reconciliation with GST portal/GSTR-2B.

4. Inventory Valuation Concerns: Out of ₹17.02 crores inventory, detailed valuation reports for ₹10.98 crores not available. No separate tracking of non-moving/slow-moving inventory.

5. Land Litigation: Collector of Nilgiris proceedings for repossession of Coonoor land challenged in Madras High Court. Potential liability unascertained.

6. Statutory Deduction Reconciliation: Unreconciled statutory deductions - PF ₹40.68 lakhs, ESI ₹9.38 lakhs, Professional Tax ₹30.03 lakhs against salary payable of ₹2.56 crores.

Management responded that they are addressing each issue and believe the financial statements present a true and fair view despite these qualifications.

Significant Events and Transactions

Financing Activities:

  • Availed unsecured loan facility of ₹34 crores from Satluj Credit Holdings Private Limited at 24% p.a. for business operations
  • Availed unsecured loan facility of ₹2 crores from Transworld Breweries and Distilleries Private Limited at 24% p.a. for working capital requirements

Corporate Actions:

  • Applied for voluntary delisting from Calcutta Stock Exchange on March 16, 2026 to streamline compliance and reduce administrative costs
  • Shareholders approved KICL Employee Stock Option Scheme for 46,86,000 ESOPs (not yet implemented as of March 31, 2026)
  • Appointed Ms. Priya Rao as Independent Woman Director effective February 16, 2026
  • Appointed Ms. Rafiq Ahmed Sulaiha Banu as Non-Executive Director effective March 20, 2026

Legal and Regulatory Matters:

  • Received notice under Section 148A(1) of Income Tax Act for FY 2021-22 proposing disallowance of expenses of ₹3,37,04,222 and demand of ₹1,16,26,892 - company contesting
  • Land sale dispute with Coromandel International Limited regarding valuation differences for Ennore assets sold in FY 2023-24
  • Ongoing writ petition in Madras High Court regarding Coonoor land repossession proceedings

Expansion Plans:

  • Applied to SIPCOT for allotment of land at Melur, Tamil Nadu costing ₹32.13 crores for factory setup
  • Received allotment letter on February 26, 2026; paid allotment value with interest of ₹31 lakhs on May 24, 2026
  • Lease arrangement to be recognized from FY 2026-27 under Ind AS 116

Going Concern Assessment

Management asserts the company has adequate financial resources to continue as a going concern despite current losses, based on clear business expansion plans and additional financing arrangements.

Impact of New Labour Codes

The company estimated 13.81% impact on employee benefits and approximately 6.58% (₹3.96 lakhs) related liabilities under the new Labour Codes notified on November 21, 2025, pending final rules notification.

Cash Flow Information

Standalone Cash Flows (FY26):

  • Net cash from operating activities: ₹14,487.19 lakhs
  • Net cash used in investing activities: ₹(15,595.33) lakhs
  • Net cash from financing activities: ₹(5.58) lakhs
  • Net decrease in cash: ₹(1,113.72) lakhs

Subsequent Events

Payment of SIPCOT land allotment value with interest of ₹31 lakhs on May 24, 2026, considered a non-adjusting event post reporting date.

Additional Information

The financial results are available on BSE Limited website and company website www.kotharis.in.

#Tags: #KothariIndustrial #SEBIDisclosure #AuditQualification #FinancialResults #RegulatoryCompliance #Negative