Daikaffil Chemicals Reports Widened Loss of Rs 1.34 Crore in Q2 FY2026

Daikaffil Chemicals India Limited , a manufacturer of OBA and other chemicals, has reported a widened net loss for the quarter ended September 30, 2025. The company's financial performance reflects challenges in the current market environment.

Financial Highlights

Particulars (in Rs Crore)	Q2 FY2026	Q2 FY2025	Change (%)
Revenue from Operations	6.04	0.00	N/A
Total Income	6.05	0.09	+6622.22%
Net Loss	1.34	0.58	+131.03%

Daikaffil Chemicals reported a net loss of Rs 1.34 crore for the quarter ended September 30, 2025, compared to a loss of Rs 0.58 crore in the same period last year. This represents an increase in losses by 131.03% year-over-year.

Revenue and Operational Performance

The company's total income for Q2 FY2026 stood at Rs 6.05 crore, a substantial increase from Rs 0.09 crore in the corresponding quarter of the previous year. Revenue from operations contributed Rs 6.04 crore to the total income, indicating a resumption of operational activities compared to the same quarter last year when no operational revenue was recorded.

Expenses and Profitability

Despite the increase in revenue, Daikaffil Chemicals faced higher expenses during the quarter. Total expenses amounted to Rs 7.39 crore, significantly higher than the Rs 0.96 crore reported in Q2 FY2025. This increase in expenses outpaced the growth in revenue, leading to the widened loss for the quarter.

Balance Sheet Position

As of September 30, 2025, Daikaffil Chemicals reported total assets of Rs 15.40 crore, with current assets accounting for Rs 11.47 crore. The company's total equity stood at Rs 7.90 crore, while total liabilities were Rs 7.50 crore.

Corporate Development

In a significant corporate development, Daikaffil Chemicals incorporated a new subsidiary, Mikusu Global Industries Limited, in August 2025. However, as of September 30, 2025, the funding for this subsidiary had not been completed, and consequently, consolidated financial statements were not prepared for the period.

Auditor's Review

NV C & Associates LLP, the company's auditors, conducted a limited review of the standalone financial results for the quarter and half-year ended September 30, 2025. They issued an unmodified opinion, stating that nothing has come to their attention that causes them to believe that the financial results do not present a true and fair view in accordance with applicable accounting standards and SEBI regulations.

Investors and stakeholders should note that while Daikaffil Chemicals has shown a significant increase in revenue, the widened losses indicate ongoing challenges in profitability. The company's performance in the coming quarters will be crucial in determining its ability to improve its financial position and capitalize on the newly established subsidiary.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-6.02%	-17.35%	-22.58%	-40.21%	-60.09%	+250.36%

Daikaffil Chemicals India Limited has taken a significant step in expanding its international presence by incorporating a wholly owned subsidiary in Nigeria. The new entity, named Mikusu Global Industries Limited, marks Daikaffil's entry into the African agro-chemical market.

Key Details of the Subsidiary

Detail	Value
Name	Mikusu Global Industries Limited
Incorporation Date	August 22, 2025
Location	Nigeria
Share Capital	₦100,000,000 (approximately ₹57,00,000)
Shareholding	100% owned by Daikaffil Chemicals India Limited

Business Focus

Mikusu Global Industries Limited will operate in the agro-chemical industry, with a focus on:

Pesticides
Insecticides
Herbicides
Fungicides
Weedicides

Corporate Governance and Compliance

The incorporation of Mikusu Global Industries Limited follows all necessary regulatory procedures:

The Board of Directors of Daikaffil Chemicals India Limited approved the incorporation on August 12, 2025.
The subsidiary was incorporated under the Companies And Allied Matters Act, 2020 of Nigeria.
The Corporate Affairs Commission of Nigeria issued the Certificate of Incorporation on August 22, 2025.
Daikaffil Chemicals will remit funds for the share capital in compliance with the Foreign Exchange Management Act, 1999 of India.

Regulatory Disclosure

Daikaffil Chemicals India Limited has made this disclosure in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has informed the BSE Limited about this development, maintaining transparency with its stakeholders.

Strategic Implications

This move by Daikaffil Chemicals India Limited represents a strategic expansion into the African market. By establishing a wholly owned subsidiary in Nigeria, the company is positioning itself to tap into the agro-chemical industry in the region. This expansion may provide Daikaffil with new growth opportunities and potentially diversify its revenue streams.