Kaka Industries has commissioned a 7.5 MW captive solar power plant at Kheda District, Gujarat, marking a significant step in its renewable energy initiative. The plant became operational in mid-June 2026 and is expected to deliver power cost savings of approximately ₹45 lakhs per month. These savings, translating to an annualised benefit of around ₹5.4 crores, will start reflecting in the company's EBITDA with effect from 1st July 2026, thereby improving operating margins without a corresponding increase in production volumes.

The solar plant has been established for captive consumption to reduce electricity costs across the company's PVC, WPC, and uPVC manufacturing operations. With an estimated useful life of 25 years, the asset is designed to insulate a meaningful portion of energy costs from grid tariff volatility. The company anticipates roughly nine months of savings to accrue within the current fiscal year, supporting a stronger and leaner cost structure through the balance of FY2026-27.

Management stated that this initiative reinforces the company's long-term commitment to sustainable, eco-conscious manufacturing. As the manufacturing of profiles is energy-intensive, captive renewable generation directly addresses one of the company's largest controllable cost lines. The company will continue to monitor plant performance and provide further updates on realised savings in subsequent quarterly disclosures.

Kaka Industries Limited reported a strong financial performance for the full year ended March 31, 2026, with significant growth across revenue, EBITDA, and profitability. The company's Board of Directors approved the audited standalone and consolidated financial results at a meeting held on May 15, 2026. Net Sales for FY26 crossed INR 2,632.3 million, registering a year-on-year growth of 33.1%, while Profit After Tax (PAT) surged 46.0% to INR 187.7 million. The statutory auditors issued an unmodified audit opinion on the financial results.

H2 FY26 Performance Highlights

For the half-year ended March 31, 2026 (H2 FY26), the company demonstrated robust operational momentum. Net Sales stood at INR 1,383.4 million, a 35.2% increase compared to H2 FY25. EBITDA expanded by 39.8% year-on-year to INR 186.5 million, with margins improving by 45 basis points to 13.5%. PAT for H2 FY26 rose sharply by 56.3% to INR 99.2 million, with PAT margins expanding by 97 basis points to 7.2%.

Full Year Financial Performance

The full-year results reflect consistent execution on operational efficiency and product mix improvement. EBITDA for FY26 grew 35.7% to INR 354.0 million, with margins expanding by 26 basis points to 13.4%. EPS (Reported) for the year stood at Rs. 13.74, a 45.9% increase over the previous year.

Strategic Initiatives and Future Outlook

The company outlined its strategic priorities for FY 2026-27, focusing on three pillars: strengthening the supply chain, driving product innovation in PVC, WPC, and uPVC segments, and improving EBITDA margins through operational efficiency. A key development is the operational status of the 7.5 MW captive solar power plant at Kheda District, Gujarat, commissioned in mid-June 2026. This initiative is expected to generate power cost savings of approximately INR 45 lakhs per month, directly contributing to improved EBITDA margins. The company also aims to expand its domestic presence in existing and new markets through aggressive influencer marketing and digital platforms.

Management Commentary

Commenting on the results, Mr. Chintan Bodar, CFO, stated that the consistent improvement across key financial metrics is a testament to focused execution on operational efficiency and disciplined capital allocation. He highlighted that FY26 was a landmark year with Net Sales crossing INR 2,632 Mn and PAT surpassing INR 187 Mn. The company remains committed to sustaining this growth trajectory through continued investment in product capabilities and capacity expansion.

Corporate Overview

Kaka Industries Limited operates as a "House of Brands" with labels including Kaka PVC Profile, Barbarika, and Nice Plast. The company serves 450+ customers across 20+ States with 3 manufacturing units in Gujarat. Its product portfolio spans PVC Profile, WPC Solid Profile, and uPVC Profile, catering to residential, commercial, and institutional customers.