Kedia Construction Q1 Results: Net loss widens to ₹28.4 lakh
Kedia Construction posted a Q1FY26 net loss of ₹28.40 lakh, down from ₹31.78 lakh in Q1FY25. Revenue slipped 12.5% to ₹10.50 lakh. Other income rose to ₹17.55 lakh, covering over 60% of total income. Auditors flagged a pending property dispute valued at ₹77.38 lakh.
*this image is generated using AI for illustrative purposes only.
Kedia Construction Company Limited (KCCL) reported a net loss of ₹28.40 lakh for the quarter ended June 30, 2026, compared to a net loss of ₹31.78 lakh in the corresponding period of FY25. The company’s revenue from operations fell 12.5% year-on-year to ₹10.50 lakh, down from ₹12.00 lakh in Q1FY25.
The Board of Directors approved the unaudited financial results on August 14, 2026, alongside the draft annual financial statements for FY26. The comparative figures for the previous period have been restated following the amalgamation of Kirti Investments Limited with KCCL, effective April 1, 2024.
Financial Performance
Total income for the quarter stood at ₹28.05 lakh, supported by other income of ₹17.55 lakh, which rose from ₹16.98 lakh in Q1FY25. However, total expenditure increased to ₹56.45 lakh from ₹61.56 lakh in the prior year period, primarily due to fluctuations in stock adjustments.
| Metric | Q1FY26 (₹ Lakh) | Q1FY25 Restated (₹ Lakh) | Change |
|---|---|---|---|
| Revenue from Operations | 10.50 | 12.00 | -12.5% |
| Other Income | 17.55 | 16.98 | +3.4% |
| Total Expenditure | 56.45 | 61.56 | -8.1% |
| Net Loss | (28.40) | (31.78) | -10.6% |
Cost of materials consumed rose to ₹7.64 lakh from ₹3.62 lakh year-on-year. Employee benefit expenses declined to ₹7.89 lakh from ₹10.05 lakh. Administrative and general expenses more than doubled to ₹16.12 lakh from ₹7.25 lakh.
What the Numbers Show
Other income constituted approximately 62.6% of the company’s total income in Q1FY26 (₹17.55 lakh out of ₹28.05 lakh), highlighting a significant reliance on non-operational revenue streams to offset operating losses. This dependency is evident as operational revenue alone was insufficient to cover the combined cost of materials and administrative expenses.
Auditor’s Emphasis of Matter
Jhunjhunwala Jain & Associates LLP, the independent auditors, highlighted two key matters in their review report:
- A pending litigation against LIC of India regarding the Ridge Road Property, valued at ₹77.38 lakh and held as inventory, has no provision for diminution in value as the matter remains sub judice.
- The financial statements reflect the amalgamation of Kirti Investments Limited into KCCL, approved by the NCLT Mumbai Bench on April 6, 2026, with an appointed date of April 1, 2024.
How might the ongoing litigation with LIC of India regarding the Ridge Road Property impact KCCL's future inventory valuation and potential asset write-downs?
Given that other income constituted over 62% of total income, what strategic steps is management taking to improve core operational revenue and reduce reliance on non-operational streams?
What are the long-term financial synergies expected from the amalgamation of Kirti Investments Limited, and will it help stabilize KCCL's recurring losses?
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