Khaitan (India) Limited reported a net profit of ₹243.79 lakh for the quarter ended June 30, 2026, marking a 56% year-on-year increase from ₹156.39 lakh in Q1FY26. The company’s revenue from operations rose 39.8% to ₹4145.34 lakh, driven primarily by growth in its Electrical Goods segment. This performance underscores the resilience of its core trading business despite ongoing operational challenges in its sugar division.

The Board of Directors approved the unaudited financial results on July 31, 2026, pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. K. C. Bhattacharjee & Paul LLP, the statutory auditors, issued a limited review report with a qualified conclusion. The qualification stems from the company’s treatment of its suspended sugar mill operations as continuing rather than discontinued, despite long-term production halts and accumulated losses.

Financial Performance Highlights

Total expenses stood at ₹3918.04 lakh, up from ₹2817.71 lakh in the prior year period. Purchases of trading goods increased to ₹3334.58 lakh from ₹2311.28 lakh, reflecting higher inventory build-up to support sales growth. Employee benefits expense remained stable at ₹203.97 lakh, while finance costs decreased slightly to ₹30.77 lakh from ₹43.32 lakh.

Segment-wise Analysis

The Electrical Goods segment contributed ₹4140.64 lakh to total revenue, accounting for over 99% of the company’s turnover. Segment profit before finance costs and taxes was ₹273.89 lakh, compared to ₹212.23 lakh in Q1FY26. In contrast, the Sugar segment recorded a loss of ₹5.05 lakh, continuing its pattern of negative contribution due to suspended production. The Agriculture segment generated minimal revenue of ₹4.70 lakh with a segment result of ₹2.36 lakh.

What the Numbers Show

The divergence between top-line growth and margin stability indicates efficient cost management despite higher input costs. While revenue surged nearly 40%, employee benefits and depreciation expenses remained contained, allowing profit before tax to grow at a comparable rate. However, the persistent loss in the Sugar division highlights an unresolved structural issue that continues to drag on overall group profitability. Management’s refusal to classify this unit as discontinued operations, despite auditor objections, suggests strategic intent to revive the asset rather than write it down—a stance that carries both potential upside and balance sheet risk.

Auditor Qualification and Management Response

K. C. Bhattacharjee & Paul LLP noted that assets, liabilities, and expenses related to the sugar mill should have been disclosed under Discontinued Operations per Ind AS standards. The qualification has appeared consistently since Q1FY25. Management maintains that revival options are being explored, including securing short-term and long-term capital, and asserts that the realizable value of property, plant, and equipment remains above carrying value. No impairment provision was made during the quarter.

Trade receivables, payables, loans, and advances remain subject to reconciliation and confirmation, as highlighted in the emphasis of matter paragraph. Consolidated results, which include subsidiaries Khaitan Fan and Appliances Ltd. and Khaitan Strategies Ltd., mirrored standalone figures closely, with consolidated net profit at ₹243.73 lakh.

Khaitan (India) Limited reported a 44.5% increase in revenue from operations to ₹11,222.72 lakh for the financial year ended March 31, 2026, while net profit for the year declined by 13.1% to ₹606.34 lakh. The board approved the audited standalone and consolidated financial results at its meeting held on May 26, 2026. The company's statutory auditors, K. C. Bhattacharjee & Paul, issued a qualified opinion on the financial results, citing the classification of the suspended sugar mill operations as continuing business rather than discontinued operations. The company has intimated the stock exchanges regarding the newspaper publication of these audited financial results for Q4FY26 under Regulation 47, which appeared in The Echo of India and Arthik Lipi on May 28, 2026.

Standalone Financial Performance

For the quarter ended March 31, 2026, the company recorded a total income of ₹3,648.01 lakh and a net profit of ₹293.50 lakh. For the full year, total income stood at ₹11,293.47 lakh, up from ₹8,036.26 lakh in the previous year. Total expenses for the period rose to ₹10,685.95 lakh from ₹7,321.13 lakh in FY25. Profit before tax for the year stood at ₹607.52 lakh, a decrease from ₹715.13 lakh in the prior year. Earnings per share (EPS) for the year were reported at ₹12.77, compared to ₹14.69 in the previous year.

Segment Performance

The company operates predominantly in three business segments: Agriculture, Sugar, and Electrical goods. Revenue from the Electrical Goods segment was the primary driver, contributing ₹11,179.95 lakh for the year. The Sugar segment reported nil revenue, while the Agriculture segment contributed ₹42.77 lakh. The Sugar division has been under suspension for a long time due to heavy losses, and management is exploring options for revival, including arranging capital requirements.

Audit Qualifications

The statutory auditors issued a modified opinion, stating that the balances of assets, liabilities, expenses, and cash flows related to the sugar mill should have been recognized and disclosed as Discontinued Operations. The company, however, has treated them as part of continuing operations. The auditors also drew attention to the fact that balances of trade receivables, trade payables, loans, and advances are subject to confirmation.

Consolidated Results

The consolidated financial results for the year include the performance of two newly incorporated subsidiaries, Khaitan Fans and Appliances Ltd. and Khaitan Strategy Ltd. The group reported a net profit of ₹605.01 lakh for the year. Total consolidated assets stood at ₹7,802.08 lakh as of March 31, 2026.