Kothari Industrial Corporation has secured a confirmed work order worth Rs 24.93 crore from Tiruppur City Municipal Corporation, Tiruppur for food service provision under the Perunthalaiivar 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 24.93 crore from Tiruppur City Municipal Corporation, Tiruppur. The contract covers selection as Food Service Provider under the Perunthalaiivar Kamarajar Morning Breakfast Scheme to school children from the common kitchen located at Anupparpalayam Government Higher Secondary School premises, covering Wards 11, 31, 47 and 41 of Tiruppur City Municipal Corporation at Rs 9.08 per packet. The order is valid for a time period of three years and was disclosed to the exchange on 21.09.2026. This is not a related-party transaction and there is no promoter interest disclosed.

The company had previously secured a Rs 5.34669408 crore order from Keelakarai Municipality and Thirupathur Municipality, a Rs 12.02 crore order from six other Tamil Nadu municipalities, and a Rs 5.84 crore order from Thirunindravur Municipality and Aruppukottai Municipality, all for food service provision under similar schemes.

ORDER IN FINANCIAL CONTEXT

The Rs 24.93 crore order represents an additional contract under the same government breakfast scheme. The total disclosed order book stands at Rs 60.13 crore across 7 orders (sum of the orders disclosed across the last 3 fiscal quarters shown in the table below). This backlog covers approximately 1.21 quarters of average quarterly revenue of Rs 49.70 crore, or approximately 0.30 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 60.13 crore across 7 orders, covering approximately 1.21 quarters of average quarterly revenue.

Kothari Industrial Corporation has officially launched its first FMCG brand, CHUSIP Coco Twist, on September 17, 2026. The natural tender coconut water beverage marks the company's formal entry into the fast-moving consumer goods sector.

The launch event was held at the company's Chennai headquarters. Dr. Jinnah Rafiq Ahamed, Executive Chairman and Managing Director, presided over the ceremony.

Product Details

CHUSIP Coco Twist is positioned as a pure, natural drink sourced from coconut farms in Tamil Nadu. The product contains no sugar and no preservatives. It is currently available in a 200 ml pack priced at ₹50. The company plans to introduce a 1 litre pack soon.

The portfolio aims to target Gen Z consumers with low-calorie options. Future plans include introducing smooth fruit drinks, fruit drinks with and without pulp, and Nata De Coco variants.

Strategic Outlook

Kothari Industrial aims to build a ₹2,500 crore beverage business by 2035. In the first phase, the brand will focus on South India. The company plans to appoint 100 distributors across Tamil Nadu, Kerala, and Karnataka.

Dr. Jinnah Rafiq Ahamed stated that the launch aligns with emerging consumer trends towards healthy, natural choices. The company intends to expand its portfolio across general, modern, and digital commerce channels before moving into international markets.

Regulatory Disclosure

The company issued this intimation under Regulation 30 of the SEBI (LODR) Regulations, 2015. This disclosure updates the earlier announcement dated April 30, 2026, regarding the setup of the FMCG and Vending Division.