Kedia Construction posts ₹232.72 lakh net loss in FY26 amid rising costs
- Kedia Construction reported a net loss of ₹232.72 lakh in FY26, reversing a profit of ₹39.25 lakh in FY25
- Revenue from operations fell 19.4% to ₹55.00 lakh, while total expenses surged to ₹313.12 lakh
- Total assets stood at ₹1,576.53 lakh, with cash reserves of ₹49.29 lakh as of March 31, 2026
- Shareholders will ratify related-party transactions totaling over ₹65 lakh at the AGM on September 23
*this image is generated using AI for illustrative purposes only.
Kedia Construction Company Limited reported a net loss of ₹232.72 lakh for the fiscal year ended March 31, 2026, reversing the previous year's profit of ₹39.25 lakh.
The company notified the Bombay Stock Exchange on August 28, 2026, regarding its 45th Annual General Meeting scheduled for September 23, 2026. The meeting aims to adopt the audited standalone financial statements and ratify related-party transactions.
Financial Performance
Revenue from operations fell to ₹55.00 lakh in FY26, down from ₹68.25 lakh in the restated previous year. Total income stood at ₹83.55 lakh, supported by other income of ₹28.55 lakh, which included gains on fair valuation of investments and interest receipts.
Expenses surged significantly to ₹313.12 lakh, compared to ₹32.73 lakh in the prior year. This increase was primarily driven by a change in inventories of ₹239.33 lakh and employee benefit expenses of ₹38.72 lakh. Consequently, profit before tax turned negative at (₹229.57) lakh.
| Metric | FY26 | FY25 (Restated) | Change |
|---|---|---|---|
| Revenue from Operations | ₹55.00 lakh | ₹68.25 lakh | -19.4% |
| Total Income | ₹83.55 lakh | ₹82.60 lakh | +1.1% |
| Total Expenses | ₹313.12 lakh | ₹32.73 lakh | +856.4% |
| Net Profit/Loss | (₹232.72) lakh | ₹39.25 lakh | Turnaround |
Balance Sheet and Cash Position
As of March 31, 2026, total assets stood at ₹1,576.53 lakh. Current assets comprised ₹1,565.21 lakh, with inventories accounting for ₹1,215.44 lakh and current investments at ₹285.21 lakh. Cash and cash equivalents were ₹49.29 lakh.
Total equity decreased to ₹1,484.58 lakh from ₹1,717.31 lakh in the previous year, reflecting the current year's loss. The company had no non-current liabilities and minimal current liabilities of ₹91.94 lakh.
What the Numbers Show
The divergence between stable total income and exploding expenses highlights a structural shift in cost dynamics. While operational revenue declined by nearly 20%, total income remained flat due to higher other income, largely from investment fair value gains. However, this was insufficient to offset a tenfold increase in total expenses, driven predominantly by inventory adjustments and higher employee costs, resulting in a significant erosion of retained earnings.
Related Party Transactions
Shareholders will vote on the ratification of existing and proposed related-party contracts conducted on an arm's-length basis. Key transactions include managerial remuneration for Akash Bate (₹6.90 lakh) and Pooja Choubey (₹2.04 lakh), and service charges received from Nitin Castings Limited (₹55.00 lakh).
| Name | Relationship | Nature of Transaction | Amount (Rs. in Lakhs) |
|---|---|---|---|
| Akash Bate | Key Managerial Personnel | Managerial Remuneration & Perquisites | 6.90 |
| Pooja Choubey | Key Managerial Personnel | Managerial Remuneration & Perquisites | 2.04 |
| Jayprakash Preethi | Independent Director | Director Sitting Fees | 1.00 |
| Akash Bate | Key Managerial Personnel | Advance against salary | 0.75 |
| Nitin Castings Limited | Entity having Significant Influence | Service Charges Received | 55.00 |
Mr. Nitin Kedia and his relatives are interested in the resolution. No other directors or key managerial personnel have a financial interest.
Governance and Logistics
The meeting will be conducted via Video Conferencing or Other Audio-Visual Means without physical presence. Remote e-voting through National Securities Depository Limited opens on September 18, 2026, at 9:00 am and closes on September 22, 2026, at 5:00 pm.
The record date for voting eligibility is September 15, 2026. The register of members and share transfer books remain closed from September 16, 2026, to September 22, 2026.
What specific operational strategies will Kedia Construction implement to reverse the 19.4% decline in revenue from operations in the upcoming fiscal year?
How does the company plan to manage its high inventory levels of ₹1,215.44 lakh, which significantly contributed to the surge in expenses?
Given the reliance on ₹55.00 lakh in service charges from Nitin Castings Limited, what are the risks associated with this related-party dependency for future cash flow stability?
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