Kothari Fermentation & Biochem reported a net loss of ₹298.93 lakh for the financial year ended March 31, 2026, a reversal from the net profit of ₹80.99 lakh recorded in FY25. The company’s revenue declined by 1.84% to ₹11,213.19 lakh, driven by higher raw material costs and competitive pricing pressures. Production volumes rose 5.38% to 16,102 MT, yet capacity utilization stood at 76.68% against an operative capacity of 21,000 MT per annum.

The board has scheduled the 36th Annual General Meeting (AGM) for Wednesday, September 30, 2026, at 11:30 am. The meeting will be conducted via video conferencing or other audio-visual means. Key agenda items include the re-appointment of Chairman and Managing Director Pramod Kumar Kothari and special resolutions to revise the remuneration of both Mr. Kothari and Whole-Time Director Mrs. Kavita Devi Kothari.

Financial Performance

The company’s operating profit margin contracted sharply to 0.21% from 4.77% in the previous year. Profit before tax swung to a loss of ₹346.23 lakh from a profit of ₹193.86 lakh. Finance costs increased marginally to ₹369.93 lakh, while depreciation expenses rose to ₹700.24 lakh. The current ratio improved to 1.91 from 1.08, primarily due to a reduction in current liabilities during the year.

What the Numbers Show

Despite a 5.38% increase in production volume, revenue declined, indicating a compression in average selling prices or a shift toward lower-margin product variants. The operating profit before interest and tax (PBDIT) fell significantly to ₹723.94 lakh from ₹1,196.51 lakh, highlighting that volume growth was insufficient to offset rising input costs and lower operating profitability. Additionally, foreign exchange earnings dropped to nil from ₹180.50 lakh in FY25, suggesting a potential contraction in export activities or a strategic pivot toward domestic markets.

Corporate Governance and Remuneration

The AGM will seek approval for revised remuneration packages for key promoters effective from April 1, 2026, to March 31, 2028. Mr. Pramod Kumar Kothari’s proposed monthly salary is ₹6,00,000, while Mrs. Kavita Devi Kothari’s is set at ₹5,75,000. Both resolutions include provisions for minimum remuneration payable even in the event of no profits or inadequate profits.

Dr. Rajiv Agarwal resigned as an Independent Director on August 13, 2025, due to professional commitments. Mr. Varun Kumar was appointed as an Additional Director and subsequently as an Independent Director with member approval on September 30, 2025. The company did not recommend any dividend for FY26.

Kothari Fermentation & Biochem Limited has scheduled its 36th Annual General Meeting (AGM) for Wednesday, September 30, 2026. The event will be conducted through Video Conference or Other Audio-Visual Means (VC/OAVM) in compliance with Ministry of Corporate Affairs circulars.

The company issued the notice on August 31, 2026, pursuant to Regulation 30 of the SEBI Listing Regulations and the Companies Act, 2013. Electronic copies of the AGM notice and the Annual Report for FY25-26 have been dispatched to members with registered email addresses.

E-Voting Details

Shareholders holding shares as on the cut-off date of September 23, 2026, are eligible to vote. The remote e-voting facility is provided by National Securities Depository Limited (NSDL).

Members who have not cast their votes via remote e-voting may vote during the AGM. Those who voted remotely cannot vote again during the meeting.

Shareholder Updates

Physical shareholders are requested to update their email addresses by submitting Form ISR-1 to Abhipra Capital Limited. Demat holders must update details with their respective Depository Participants. Physical copies of the notice can be requested from the company or RTA.