Kaya Limited reported a net loss of ₹1,517.91 lakh for the quarter ended June 30, 2026, widening from the ₹1,406.54 lakh loss recorded in the corresponding period of the previous year. This deterioration occurred despite a robust 14.7% year-over-year increase in total income, which rose to ₹6,127.23 lakh from ₹5,340.53 lakh in Q1FY25. The Board of Directors approved these standalone financial results at its meeting held on August 3, 2026, underscoring the company’s continued struggle to convert top-line growth into profitability amid elevated operational costs.

The financial statement reveals that while revenue generation improved, expense management remains a critical challenge. Total comprehensive income for the quarter stood at a loss of ₹1,523.86 lakh. The earnings per share (EPS) for both basic and diluted shares were reported at (₹9.99), compared to (₹10.74) in Q1FY25. These figures have been subject to limited review by the statutory auditors of the Company, who issued an unmodified review report. The results were filed with the stock exchanges under Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Performance Overview

What the Numbers Show

The divergence between income growth and net loss expansion highlights persistent margin pressure within Kaya Limited’s operations. Although total income grew by nearly 15%, the net loss widened by approximately 7.9%, indicating that operating expenses and other costs outpaced revenue gains. The equity share capital increased to ₹1,518.76 lakh from ₹1,309.75 lakh in the prior year, reflecting recent capital structure adjustments. However, with reserves remaining negative as indicated in previous annual reports, the company continues to rely on promoter support and operational efficiency improvements to restore financial health. The absence of exceptional items in the current quarter’s loss calculation suggests that the entire deficit stems from core operational activities rather than one-off charges.

kaya reported a 14% year-on-year increase in revenue from operations to ₹60.14 crore (₹6013.56 lakh) for the quarter ended June 30, 2026 (Q1FY27), driven by a 16% growth in its clinic business. Despite the top-line expansion, the company posted a standalone net loss of ₹15.18 crore (₹1517.91 lakh), a slight widening from the ₹14.07 crore (₹1406.54 lakh) loss in Q1FY26, primarily due to regulatory changes in input tax credit availability under GST 2.0.

The financial results were reviewed by the Audit Committee and approved by the Board on August 03, 2026, in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The statutory auditors, B S R & Co. LLP, issued an unmodified limited review report on the unaudited financial results pursuant to Regulation 33. Concurrently, the Board approved a leadership transition effective November 1, 2026, where Harsh Mariwala will move to Non-Executive Director and Chairman, while Rishabh Mariwala assumes the role of Managing Director for a five-year term.

Segment-Wise Growth

The company highlighted robust performance across its key service and product verticals. The clinic business, which includes services, registered a 16% revenue growth over Q1FY26. This was fueled by demand in categories such as Brightening & Pigmentation, Acne & Scars, and Anti-Aging. The skin care business witnessed a 19% growth, while the hair care segment grew by 17%. Additionally, the product business registered a 16% increase, driven by Nutraceutical, Lighter and Brighter, and Anti-Aging categories.

Financial Performance

Total income for the quarter stood at ₹61.27 crore (₹6127.23 lakh). Employee benefits expense remained stable at ₹17.07 crore (₹1707.46 lakh), while finance costs increased slightly to ₹9.34 crore (₹933.56 lakh). Depreciation and amortisation expenses were recorded at ₹10.84 crore (₹1083.58 lakh). Other income decreased to ₹1.14 crore (₹113.67 lakh) from ₹2.00 crore (₹200.04 lakh) in the preceding quarter.

What the Numbers Show

The quarter-on-quarter improvement in net loss is largely attributable to the absence of exceptional items that impacted Q4FY26. In the previous quarter, the company recognized an impact of Labour Codes amounting to ₹3.74 crore (₹374.13 lakh) and an impairment loss of ₹11.77 crore (₹1176.58 lakh) on Property, Plant and Equipment. No such exceptional items were recorded in Q1FY27. However, the year-on-year widening of the loss reflects the operational headwind from GST 2.0 changes effective September 2025, which restricted input tax credit availability. The company continues to operate under a going concern basis, supported by promoter group backing, despite maintaining a negative net worth position as of June 30, 2026.