Kriti Industries Q4FY26 EBITDA Jumps to INR 183 Mn; Board Approves Subsidiary Merger
Kriti Industries reported a sharp turnaround in Q4FY26 with consolidated EBITDA rising to INR 183 Mn from INR 2 Mn YoY and net profit of INR 40 Mn versus a loss of INR 37 Mn. For FY26, EBITDA improved to INR 349 Mn with margin expanding 201 bps to 5.94%. The board approved the merger of wholly owned subsidiary Kriti Auto & Engineering Plastics Pvt Ltd, did not recommend a dividend, and re-appointed Mr. Shiv Singh Mehta as CMD for three years from October 1, 2026.
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Kriti Industries (India) Limited , incorporated in 1990 and listed on BSE in 1994, held its Board of Directors meeting on May 5, 2026, approving standalone and consolidated audited financial results for the quarter and year ended March 31, 2026. The Indore-headquartered polymer pipe manufacturer, which operates under the "Kasta" brand with a manufacturing facility at Pithampur, Madhya Pradesh, reported a decisive turnaround in profitability for both Q4FY26 and the full year FY26. The board meeting, which commenced at 10:30 AM and concluded at 2:15 PM, also addressed key corporate decisions including an amalgamation approval, a dividend decision, and the re-appointment of the Chairman and Managing Director.
Q4FY26 Consolidated Financial Performance
Kriti Industries delivered a sharp improvement in operating profitability during Q4FY26. The company's consolidated EBITDA rose to INR 183 Mn from INR 2 Mn in Q4FY25, with the EBITDA margin expanding significantly to 12.91% from 0.15% year-on-year—an improvement of 879 basis points. Consolidated operational income for Q4FY26 stood at INR 1,418 Mn, up 3.1% year-on-year and 4.4% quarter-on-quarter. Net profit for the quarter came in at INR 40 Mn compared to a loss of INR 37 Mn in Q4FY25, with PAT margin improving by 551 basis points to 2.82%. The following table summarises the quarterly consolidated financial performance:
| Metric: | Q4FY26 | Q4FY25 | YoY Change | Q3FY26 | QoQ Change |
|---|---|---|---|---|---|
| Operational Income (INR Mn): | 1,418 | 1,375 | +3.1% | 1,358 | +4.4% |
| Total Expenses (INR Mn): | 1,235 | 1,373 | (10.1)% | 1,302 | (5.1)% |
| EBITDA (INR Mn): | 183 | 2 | NA | 56 | NA |
| EBITDA Margin (%): | 12.91% | 0.15% | NA | 4.12% | +879 Bps |
| Finance Cost (INR Mn): | 35 | 60 | (41.7)% | 32 | +9.4% |
| Profit Before Tax (INR Mn): | 88 | (87) | NA | (25) | NA |
| Net Profit/(Loss) (INR Mn): | 40 | (37) | NA | (5) | NA |
| PAT Margin (%): | 2.82% | (2.69)% | +551 Bps | (0.37)% | +319 Bps |
| Diluted EPS (INR): | 0.76 | (0.66) | NA | (0.09) | NA |
FY26 Annual Consolidated Performance
For the full year FY26, Kriti Industries reported consolidated operational income of INR 5,874 Mn against INR 7,219 Mn in FY25, a decline of 18.6%. However, the company successfully improved its EBITDA to INR 349 Mn from INR 284 Mn in FY25, with EBITDA margin expanding by 201 basis points to 5.94%. Net profit for FY26 stood at INR 11 Mn, compared to a net loss of INR 43 Mn in FY25, with PAT margin improving by 79 basis points to 0.19%. Finance costs declined sharply by 36.5% year-on-year to INR 148 Mn, supported by improved working capital management and repayment of borrowings. The annual consolidated financial highlights are presented below:
| Metric: | FY26 | FY25 | YoY Change |
|---|---|---|---|
| Operational Income (INR Mn): | 5,874 | 7,219 | (18.6)% |
| EBITDA (INR Mn): | 349 | 284 | +22.9% |
| EBITDA Margin (%): | 5.94% | 3.93% | +201 Bps |
| Finance Cost (INR Mn): | 148 | 233 | (36.5)% |
| Net Profit/(Loss) (INR Mn): | 11 | (43) | NA |
| PAT Margin (%): | 0.19% | (0.60)% | +79 Bps |
| Diluted EPS (INR): | 0.22 | (0.76) | NA |
Standalone Financial Results
On a standalone basis, Kriti Industries reported revenue from operations of ₹58,736.73 lakhs for FY26 compared to ₹72,190.67 lakhs in FY25. Despite the revenue decline, the company swung to profitability at the net level, reporting a standalone net profit of ₹106.68 lakhs for FY26 against a net loss of ₹449.56 lakhs in FY25. For Q4FY26, standalone revenue stood at ₹14,178.35 lakhs with a net profit of ₹406.79 lakhs, compared to a net loss of ₹364.70 lakhs in Q4FY25. The key standalone financial metrics are as follows:
| Metric: | Q4FY26 (Audited) | Q3FY26 (Unaudited) | Q4FY25 (Audited) | FY26 (Audited) | FY25 (Audited) |
|---|---|---|---|---|---|
| Revenue from Operations (₹ Lakhs): | 14,178.35 | 13,579.33 | 13,750.65 | 58,736.73 | 72,190.67 |
| Total Income (₹ Lakhs): | 14,379.31 | 13,619.67 | 13,851.36 | 59,136.72 | 72,553.72 |
| Total Expenses (₹ Lakhs): | 13,120.48 | 13,809.09 | 14,734.86 | 58,447.64 | 73,191.59 |
| Profit/(Loss) Before Tax (₹ Lakhs): | 881.29 | (266.43) | (883.50) | 234.53 | (637.87) |
| Net Profit/(Loss) (₹ Lakhs): | 406.79 | (49.49) | (364.70) | 106.68 | (449.56) |
| Basic EPS (₹): | 0.77 | (0.09) | (0.71) | 0.20 | (0.88) |
| Diluted EPS (₹): | 0.77 | (0.09) | (0.66) | 0.20 | (0.80) |
Segmental Performance
Agriculture remained the dominant segment, contributing 77% of FY26 revenues, followed by Building Products at 15%, Industrial Solutions at 7%, and Micro-Irrigation at 1%. During Q4FY26, total sales volumes stood at 13,577 MT, reflecting a 2% increase compared to the same period last year. The Agriculture segment contributed 10,288 MT in Q4FY26, recording a 12% year-on-year increase, while Building Products delivered 2,683 MT, up 7% year-on-year. The Industrial Solutions segment recorded volumes of 606 MT in Q4FY26, reflecting a sharp year-on-year decline from 1,671 MT in Q4FY25. The quarterly segmental revenue performance is detailed below:
| Segment: | Q4FY26 Revenue (INR Mn) | Q4FY25 Revenue (INR Mn) | Q3FY26 Revenue (INR Mn) |
|---|---|---|---|
| Agricultural Products: | 1,023 | 864 | 1,148 |
| Building Products: | 314 | 316 | 193 |
| Industrial Solutions: | 80 | 196 | 17 |
For the full year FY26, segmental revenues compared to FY25 were as follows:
| Segment: | FY26 Revenue (INR Mn) | FY25 Revenue (INR Mn) | FY26 Volume (MT) | FY25 Volume (MT) |
|---|---|---|---|---|
| Agricultural Products: | 4,603 | 5,444 | 47,638 | 53,696 |
| Building Products: | 884 | 1,189 | 7,685 | 9,185 |
| Industrial Solutions: | 387 | 586 | 3,307 | 4,662 |
Historical Consolidated Performance & Balance Sheet
A review of historical consolidated financials highlights the company's recovery trajectory. After reporting a net loss of INR 230 Mn in FY23, Kriti Industries returned to profitability in FY24 with a net profit of INR 219 Mn before slipping back to a loss of INR 43 Mn in FY25, and returning to profit in FY26 with INR 11 Mn. Net worth has grown consistently from INR 1,301 Mn in FY23 to INR 2,223 Mn in FY26, while net debt to equity has improved from 0.80x in FY23 to 0.34x in FY26. The historical performance is summarised below:
| Metric: | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|
| Operational Income (INR Mn): | 7,325 | 8,666 | 7,219 | 5,874 |
| EBITDA (INR Mn): | (78) | 595 | 284 | 349 |
| EBITDA Margin (%): | NA | 6.87% | 3.93% | 5.94% |
| Net Profit/(Loss) (INR Mn): | (230) | 219 | (43) | 11 |
| Net Worth (INR Mn): | 1,301 | 1,517 | 2,016 | 2,223 |
| Net Debt to Equity (x): | 0.80 | 0.71 | 0.36 | 0.34 |
| ROCE (%): | (10)% | 22% | 6% | 7% |
| ROE (%): | (17)% | 14% | (2)% | 0.5% |
As at March 31, 2026, the consolidated balance sheet reflected total assets of INR 4,833 Mn. Total equity stood at INR 2,223 Mn, supported by equity share capital of INR 53 Mn and other equity of INR 2,170 Mn. Current borrowings declined to INR 645 Mn from INR 721 Mn in FY25, while trade receivables improved sharply to INR 281 Mn from INR 486 Mn in FY25, reflecting better collections. Inventories stood at INR 1,957 Mn as at March 31, 2026.
Scheme of Amalgamation: Subsidiary Merger Details
Pursuant to Regulation 30(2) read with clause 7 of Para A of Part A of Schedule III of SEBI (LODR) Regulations, 2015, the board approved a Scheme of Amalgamation by way of merger under Chapter XV of the Companies Act, 2013, involving the merger of wholly owned subsidiary Kriti Auto & Engineering Plastics Private Limited (Transferor Company) into Kriti Industries (India) Limited (Transferee Company), subject to necessary regulatory and statutory approvals. The audit committee had recommended the scheme on May 4, 2026, ahead of the board's formal approval on May 5, 2026. The key details of the entities involved in the amalgamation are presented below:
| Parameter: | Kriti Industries (India) Limited | Kriti Auto & Engineering Plastics Pvt Ltd |
|---|---|---|
| Role: | Transferee Company | Transferor Company |
| Listing Status: | Listed (BSE & NSE) | Unlisted |
| Net Worth as of March 31, 2026 (₹ Lakhs): | 22,071.40 | 974.45 |
| Total Turnover as of March 31, 2026 (₹ Lakhs): | 58,736.73 | 0.00 |
| Business Status: | Active – Polymer Pipe Manufacturer | Discontinued operations; not a going concern |
The Transferor Company is a wholly owned subsidiary of the Transferee Company and is not listed on any stock exchange in India or abroad. Since the merger is between a holding company and its wholly owned subsidiary, no cash consideration is involved and no shares are being issued by the Transferee Company to the Transferor Company. The transaction is also exempt from related party transaction provisions under Regulation 23(5)(b) of the Listing Regulations and SEBI Master Circular dated June 20, 2023, as well as General Circular No. 30/2014 dated July 17, 2014, issued by the Ministry of Corporate Affairs.
The rationale for the amalgamation includes consolidation and simplification of the group structure, cost savings from rationalisation and standardisation of business processes, avoidance of unnecessary duplication of administration, distribution, selling and marketing costs, reduction in legal and regulatory compliances, and achieving economies of scale by eliminating multiple entities within the group.
Key Corporate Decisions & Exceptional Items
In terms of Regulation 30 read with Part A Para 4(a) of Schedule III of the SEBI (LODR) Regulations, 2015, the board formally confirmed that it has not recommended any dividend on equity shares of Re. 1/- each for FY26. Subject to member approval at a General Meeting, the board also approved the re-appointment of Mr. Shiv Singh Mehta (DIN: 00023523) as Chairman and Managing Director for three years with effect from October 1, 2026. The financial results include two notable exceptional items: following the implementation of new Labour Codes effective November 21, 2025, the management provided ₹77.01 lakhs in the Statement of Profit & Loss; and regarding a fire accident that occurred in April 2022, an insurance claim of ₹1,925 lakhs was filed, now estimated to be settled with a shortfall of ₹377.54 lakhs provided as an exceptional item. The total exceptional item for FY26 stood at ₹454.55 lakhs on both a standalone and consolidated basis.
Separately, holders of 63,69,000 warrants out of the 94,61,480 warrants allotted on July 27, 2024 at ₹158.50 each via preferential allotment did not pay the balance 75% amount within the prescribed time period on or before January 26, 2026. Accordingly, the subscription and allotment money of ₹39.625 per warrant, amounting to ₹25,23,71,625, stands forfeited under Regulation 169(3) of SEBI (ICDR) Regulations, 2018. The paid-up equity share capital as at March 31, 2026 stood at ₹526.96 lakhs (face value Re. 1 per share). The statutory auditors, M. Mehta & Company, Chartered Accountants, expressed an unmodified audit opinion on both the standalone and consolidated financial results.
Capital Market Information
As on March 31, 2026, Kriti Industries had a market price of INR 65.47 with a 52-week high/low of INR 179.00/INR 51.00. Market capitalisation stood at INR 3,450 Mn with equity shares outstanding of 52.70 Mn. Promoters held 69.07% of the company while the public held the remaining 30.93%.
| Parameter: | Details |
|---|---|
| Face Value (INR): | 1.00 |
| Market Price (INR): | 65.47 |
| 52-Week High/Low (INR): | 179.00 / 51.00 |
| Market Cap (INR Mn): | 3,450 |
| Equity Shares Outstanding (Mn): | 52.70 |
| 1-Year Avg. Trading Volume ('000): | 41.93 |
| Promoter Holding (%): | 69.07% |
| Public Holding (%): | 30.93% |
Historical Stock Returns for Kriti Industries India
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -2.78% | +5.28% | +21.17% | -25.19% | -26.20% | -27.20% |
With revenue declining 18.6% in FY26 despite margin recovery, what strategic initiatives is Kriti Industries pursuing to reverse the top-line contraction and regain the INR 8,666 Mn peak revenue achieved in FY24?
Given that 63,69,000 warrants were forfeited due to non-payment by investors, what does this signal about institutional confidence in Kriti Industries' growth outlook, and how might the company seek alternative capital-raising avenues?
How will the merger of Kriti Auto & Engineering Plastics into Kriti Industries impact the consolidated balance sheet and operational efficiency, particularly given the subsidiary's discontinued operations and near-INR 975 lakh net worth?
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