Kamdhenu Limited delivered exceptional profitability in Q3FY26, with net profit after tax surging 67% year-on-year to ₹20.8 crore despite a marginal revenue decline. The TMT bar manufacturer achieved record profit before tax margins of 15.9%, expanding by 620 basis points, driven by strong franchise performance and operational efficiency improvements.

Outstanding Q3FY26 Financial Performance

The company's quarterly results for the period ended December 31, 2025, demonstrated remarkable profit growth despite revenue headwinds. Key financial highlights include:

The significant improvement in profitability was achieved despite a 3% decline in revenue, primarily attributed to metal price fluctuations and implementation of GRAP Stage III and IV measures in the NCR region affecting own facility volumes.

Strong Nine-Month Performance Trajectory

For the nine months ended December 31, 2025, Kamdhenu Limited maintained robust growth momentum across key profitability metrics:

Franchise Business Drives Growth

The company's asset-light franchise model continued to deliver strong results, with franchise volumes growing 18% year-on-year to 9.7 lakh MT in Q3FY26. This growth translated into record royalty income performance:

For the nine-month period, franchise volumes increased 11% to 27.7 lakh MT, while royalty income grew 28% to ₹128.9 crore, reflecting deeper brand penetration and improved partner throughput.

Management Commentary on Performance

Chairman & Managing Director Satish Kumar Agarwal highlighted the company's ability to deliver strong profitability despite TMT bar price volatility. He emphasized that royalty income remains a highly capital-efficient and RoCE accretive business, allowing scalability without incremental manufacturing investments. The management noted that own manufacturing facilities are operating at near peak utilization, making the asset-light franchise route the strategic priority for expansion.

Strategic Focus and Outlook

The company continues to evaluate investments in selective franchise partners to increase capacities where demand visibility is strong and regional presence can be strengthened. With expected revival in government and private capex and continued policy thrust on infrastructure, management remains confident of maintaining strong demand momentum in the TMT bar segment while delivering consistent, profitable growth.

Kamdhenu Limited has received a GST demand order of ₹63.40 lakhs from the Office of the Additional Commissioner of CGST, Alwar Commissionerate, as disclosed in a regulatory filing under SEBI Regulation 30 on January 2, 2026.

GST Demand Details

The demand order pertains to allegedly wrongly availed Input Tax Credit (ITC) for the period spanning from FY 2018-19 to FY 2021-22. The order was received by the company on January 1, 2026.

Nature of Alleged Violations

The GST demand order has been issued under the relevant provisions of the CGST Act, 2017, RGST Act, 2017, IGST Act, 2017 and relevant rules. The order specifically relates to:

• Wrongly availing input tax credit
• Other alleged contraventions of provisions of the GST Acts and Rules

The total demand includes both the principal amount of ₹63.40 lakhs towards the allegedly wrongly availed ITC and an equal amount of ₹63.40 lakhs as applicable interest and penalty.

Company's Response and Impact Assessment

Kamdhenu Limited has stated that it believes it has sufficient factual and legal basis to reasonably support its position in this matter. The company does not anticipate any material impact on its financial position, operations, or other activities arising from the said order at this stage.

Legal Remedy Plans

The company has announced its intention to take necessary legal remedy against the GST demand order. Kamdhenu plans to file an appeal before the Appellate Authority (Commissioner Appellate), GST, Alwar to contest the demand.

This disclosure was made pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring transparency with stakeholders regarding regulatory developments that could potentially impact the company.