Kamdhenu Limited , a leading player in the Indian steel industry, has announced an expansion plan aimed at significantly boosting its production capacity and market presence. The company plans to achieve a steel rebar capacity of 40 lakh MT and establish a network of over 100 franchisees.

Expansion Highlights

• Capacity Target: Kamdhenu aims to reach a steel rebar capacity of 40 lakh MT.
• Franchisee Network: Plans to expand to over 100 franchisees.
• Brand Sales Goal: Targeting ₹22,000 crore in brand sales.
• Royalty Income: Focus on increasing royalty income through the franchisee-led business model.
• Product Diversification: Strengthening presence in structural steel and colour-coated sheets segments.

Strategic Focus

Kamdhenu's expansion strategy includes:

1. Market Penetration: Deepening presence in tier-2 markets through its franchisee network.
2. Innovation: Continued focus on product innovation, including premium PAS 10000 TMT bars and structural solutions.
3. Franchisee Model: Leveraging its asset-light franchisee-based business model for scaling.

Financial Performance

The company's recent financial results reflect its growth:

Market Position and Outlook

Kamdhenu's expansion plans come as the Indian infrastructure and construction sectors are showing strong growth. The company's focus on TMT bars, one of the fastest-growing product categories, may position it to capitalize on this trend.

Mr. Satish Kumar Agarwal, Chairman & Managing Director of Kamdhenu Limited, commented on the company's performance and plans: "Kamdhenu's H1 FY26 performance underscored our ability to deliver resilient profitability amid a dynamic steel environment. This was primarily driven by robust growth in royalty income and our cost-optimization efforts."

He added, "As a highly trusted brand with a nationwide presence, Kamdhenu benefits from an extensive franchise network and well-established pan-India distribution capabilities. With these structural strengths in place and India's infrastructure momentum expected to remain strong, we are confident of sustaining robust growth and delivering enhanced value in the years to come."

The company's expansion strategy, coupled with its financial performance and market position, suggests that Kamdhenu may be well-positioned to capitalize on the growing demand in the Indian steel sector. However, the success of these plans will depend on various factors, including market conditions and the company's execution capabilities.

Kamdhenu Limited , India's largest manufacturer and seller of branded TMT Bars in the retail segment, has reported robust financial results for the first half of fiscal year 2026, along with key corporate decisions.

Financial Highlights for H1FY26

• Revenue from operations reached ₹387.00 crore
• Profit before tax (PBT) margins expanded to 14.00% from 10.90% in the previous year, a 310 basis points improvement
• Profit before tax grew 33% to ₹54.00 crore
• Profit after tax increased 28% to ₹40.00 crore
• Royalty income witnessed robust growth of 27% year-on-year to ₹286.00 crore, including a one-time royalty payment

Operational Performance

• Revenue from own facilities stood at ₹301.00 crore with sales volumes of 61,400 MT
• Franchise volumes rose 8% to 18 lakh MT
• The company operates through a franchise business model with over 10,000 dealers and over 500 distributors across India

Q2 FY2026 Results

Kamdhenu Limited reported a revenue from operations of ₹190.14 crore for the quarter ended September 30, 2025, compared to ₹195.78 crore in the previous quarter, marking a slight decrease of 2.88%. The company's net profit after tax stood at ₹19.80 crore, down 7.00% from ₹21.29 crore in the prior quarter.

Market Challenges

Chairman and Managing Director Satish Kumar Agarwal noted that some key operating regions experienced abnormal weather conditions and extended rainfall during the quarter, temporarily impacting volumes and revenue growth. Average selling prices were softer due to weaker steel prices, affecting realizations.

Corporate Actions and Fund Allocation

The Board of Directors approved modifications to the fund allocation for preferential issue proceeds. This decision came in light of some warrant holders not exercising their conversion option:

1. Out of 27.50 lakh convertible warrants allotted, 14.97 lakh warrants lapsed, resulting in the forfeiture of ₹13.21 crore.

2. The company received ₹57.44 crore against the initially targeted ₹97.08 crore from the preferential issue.

3. The Board approved reallocating ₹11.00 crore, originally designated for office premises construction, to other objectives of the preferential issue.

4. The timeline for fund utilization has been extended from December 31, 2025, to December 31, 2026, subject to shareholder approval through postal ballot.

Future Outlook

Despite temporary challenges in Q2, Kamdhenu Limited's overall performance in H1FY26 demonstrates strong growth and profitability. The modifications in fund allocation and the extension of the utilization timeline indicate Kamdhenu's adaptive approach to changing business needs and market conditions. These strategic decisions aim to optimize capital allocation and potentially drive future growth.

As Kamdhenu Limited navigates through these financial and strategic changes, stakeholders will be closely monitoring how these decisions impact the company's performance in the coming quarters. The company's ability to maintain steady revenue and profitability in a dynamic economic environment will be crucial for its long-term success and value creation.