Kakatiya Cement Sugar & Industries Limited has reported a significant net loss of Rs 414.86 crore for the quarter ended September 30, marking a sharp decline from the profit of Rs 6.91 crore in the same quarter last year. The company's financial performance has been impacted by various factors, including a settlement with TG TRANSCO and decreased revenues across its business segments.

Financial Highlights

• Revenue: Total income from operations declined to Rs 254.06 crore from Rs 220.40 crore in the previous year quarter.
• Net Loss: The company reported a net loss of Rs 414.86 crore, compared to a profit of Rs 6.91 crore in Q2 of the previous fiscal year.
• Half-Year Performance: For the first half of the current fiscal year, the company's net loss widened to Rs 147.09 crore, compared to a loss of Rs 8.49 crore in the corresponding period last year.
• Earnings Per Share (EPS): The EPS stood at negative Rs 14.78 for the quarter.

Segment-wise Performance

The company operates in three segments, with the following revenue breakdown:

All three segments reported losses before tax and interest.

Exceptional Item

A significant factor contributing to the loss was the settlement of a transmission charges dispute with TG TRANSCO. The company paid Rs 73.73 crore as the principal amount, which was shown as an exceptional item in the financial results.

Board Approval

The Board of Directors approved these results in a meeting held on November 3.

Operational Overview

The company's performance reflects challenges across its business segments. The cement segment, which is the largest revenue contributor, along with the sugar segment, faced operational headwinds. The power segment did not report any revenue for the quarter.

Balance Sheet and Cash Flow

As of September 30, Kakatiya Cement Sugar & Industries Limited reported:

• Total Assets: Rs 22,938.99 crore
• Equity Share Capital: Rs 777.39 crore
• Other Equity: Rs 18,411.49 crore

The company's cash and cash equivalents decreased significantly from Rs 3,772.73 crore at the beginning of the year to Rs 18.63 crore at the end of the half-year.

Conclusion

Kakatiya Cement Sugar & Industries Limited faces significant challenges as reflected in its Q2 results. The substantial net loss, declining revenues, and the impact of the exceptional item related to the TG TRANSCO settlement have put pressure on the company's financial position. Stakeholders will be closely watching the company's strategies to navigate these challenges and improve its performance in the coming quarters.

Kakatiya Cement Sugar & Industries Limited has obtained interim court orders allowing the continuation of its mining operations, providing a temporary reprieve for the company's limestone extraction activities. The development comes as a significant update for stakeholders in the cement industry.

Court Order and Mining Permits

The High Court of Andhra Pradesh has granted interim relief to Kakatiya Cement in Writ Petition No. 26267 of 2025. Following this court order, the company has received crucial mining permits from the District Forest Officer (DFO) of NTR Division, Vijayawada. These permits allow Kakatiya Cement to:

• Continue mining operations
• Transport 69,000 metric tons of limestone from the Jaggaipeta Reserve Forest mining lease area to its cement plant

Key Details of the Court Order and Permits

Financial and Operational Impact

According to the company's disclosure, there is currently no financial or operational impact from these developments. This suggests that Kakatiya Cement's regular operations may continue uninterrupted for the duration of the permit's validity.

Upcoming Board Meeting

In a separate announcement, Kakatiya Cement has scheduled a Board of Directors meeting for November 3, 2025. The meeting agenda includes:

• Consideration of unaudited financial results for the quarter and half-year ended September 30, 2025
• The trading window closure, which began on October 1, 2025, will remain in effect until 48 hours after the announcement of these financial results

This court-backed permit provides Kakatiya Cement with temporary operational continuity, while stakeholders await the upcoming financial results for a more comprehensive view of the company's performance.