Kothari Industrial Corporation has scheduled its 56th Annual General Meeting (AGM) for Wednesday, September 30, 2026. The meeting will commence at 11:00 am through video conferencing or other audio-visual means.

The company disclosed the notice pursuant to Regulations 30 and 47 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. The announcement also complies with Section 108 of the Companies Act, 2013 and Rule 20 of the Companies (Management and Administration) Rules, 2014.

Advertisements regarding the notice were published in Financial Express and Makkal Kural newspapers. The disclosures were submitted to the Corporate Relationship Department of BSE Limited on September 1, 2026.

Anil Kumar Padhiali, Company Secretary and Compliance Officer, digitally signed the communication. The company’s registered office is located at Kothari Building, Mahatma Gandhi Salai, Nungambakkam, Chennai.

Kothari Industrial Corporation has secured a confirmed work order worth Rs 5.34669408 crore from Keelakarai Municipality and Thirupathur Municipality in Tamil Nadu for food service provision under the Perunthalaiwar Kamarajar Morning Breakfast Scheme.

The company continues to win contracts from multiple domestic municipal bodies as well as Indian Railways entities, reinforcing its diversified client base.

WHAT HAPPENED

Kothari Industrial Corporation secured a confirmed work order valued at Rs 5.34669408 crore from Keelakarai Municipality and Thirupathur Municipality in Tamil Nadu. The contract covers food service provision for the Perunthalaiwar Kamarajar Morning Breakfast Scheme for school children in the respective municipalities. The order is valid for a time period of 3 years and was disclosed to the exchange on 27.08.2026. This is not a related-party transaction and there is no promoter interest disclosed.

The company had separately secured a Rs 12.02 crore order from six other Tamil Nadu municipalities for food service provision under the Perunthalaiavar Kamarajar Breakfast Scheme, and a Rs 5.84 crore order from Thirunindravur Municipality and Aruppukottai Municipality, also for a period of 3 years.

ORDER IN FINANCIAL CONTEXT

The Rs 5.34669408 crore order represents an additional contract under the same government breakfast scheme. The total disclosed order book stands at Rs 35.19 crore across 5 orders (sum of the orders disclosed across the last 3 fiscal quarters shown in the table below). This backlog covers approximately 0.71 quarters of average quarterly revenue of Rs 49.70 crore, or approximately 0.18 years of annual revenue at current run-rate. The book-to-bill ratio remains modest given the trailing twelve-month revenue of Rs 198.8 crore.

COMPANY ORDER TRACK RECORD

The company has secured orders from both domestic municipal bodies in Tamil Nadu and Indian Railways entities, indicating diversification across client types. The order history below reflects all disclosed orders across the last 3 fiscal quarters.

Recent Order Details

EXECUTION AND REVENUE QUALITY

The company is facing severe margin stress, with net losses reported in all three recent quarters. Operating profit margins have remained deeply negative, ranging from -32.13% to -54.16%.

REVENUE GROWTH - ORDER WINS TRANSLATING TO REVENUE

As Kothari Industrial Corporation has sustained order wins, its annual revenue has grown from Rs 27.10 crore in FY24 to Rs 178.30 crore in FY26, representing a year-on-year growth of +557.9% based on the latest annual data. However, this top-line expansion has not translated to profitability, with net profit declining to -Rs 89.89 crore in FY26.

WORKING CAPITAL AND EXECUTION CAPACITY

The company maintains a current ratio of 1.73x and a Total Liabilities/Equity of 0.35x (a proxy figure that includes trade payables and other non-debt liabilities, not just interest-bearing debt), suggesting adequate liquidity for short-term obligations. Operating cashflow was negative at -Rs 35.10 crore in FY24, indicating that the business model is not efficiently converting operations into cash.

WHAT TO WATCH

• Execution rate: Monitor if the new food service and material handling contracts can stabilize the deeply negative operating margins.
• Margin quality: OPM has been below zero for multiple quarters; watch for any signs of improvement in cost control or pricing power.
• Cash conversion: Negative operating cashflows suggest working capital cycles may be stretched; monitor receivables turnover.
• Client diversification: The company has now secured orders from both domestic municipal bodies in Tamil Nadu and Indian Railways entities, reducing reliance on a single client type.

KEY OBSERVATIONS

• Margin stress: Net loss of Rs 28.90 crore in Q1FY27; execution stress visible in quarterly data.
• Cash conversion: Operating cashflow of -Rs 35.10 crore in FY24; backlog is not converting to cash efficiently, and receivables or working capital cycle may be stretched.
• Backlog signal: Total disclosed order book stands at Rs 35.19 crore across 5 orders, covering 0.71 quarters of average quarterly revenue.