Kamdhenu Limited delivered robust financial performance in the third quarter of FY26, with net profit after tax jumping 67% year-on-year to ₹2,080.40 lakhs. The steel products manufacturer also announced a significant strategic investment in its promoter group entity, Kamdhenu Ventures Limited, signaling expansion into the paints business segment.

Strong Q3FY26 Financial Performance

The company's quarterly results for the period ended December 31, 2025, showed impressive profit growth despite a slight decline in revenue. Key financial highlights include:

The significant improvement in profitability was driven by better cost management and operational efficiency. Total expenses decreased to ₹14,916.40 lakhs from ₹15,571.22 lakhs in the corresponding quarter of the previous year.

Nine-Month Performance Shows Consistent Growth

For the nine months ended December 31, 2025, Kamdhenu Limited maintained its growth trajectory with strong year-on-year improvements:

Strategic Investment in Paint Business

The Board of Directors approved a major strategic investment of ₹20,15,86,000 in Kamdhenu Ventures Limited (KVL), a promoter group entity operating in the paint industry. The investment details are:

Each convertible warrant can be converted into one equity share of ₹1 each. The company will pay 25% of the warrant price at allotment, with the remaining 75% payable upon conversion.

Fund Utilization Progress

The company provided an update on the utilization of proceeds from its earlier preferential issue. As of December 31, 2025, ₹5,253.47 lakhs had been utilized out of the revised allocation of ₹5,744 lakhs, leaving an unutilized balance of ₹490.19 lakhs temporarily invested in fixed deposits.

Business Outlook and Strategic Direction

The investment in Kamdhenu Ventures Limited represents a strategic move to participate in the paints and coatings business through KVL's wholly-owned subsidiary, Kamdhenu Colour and Coatings Limited. The funds raised by KVL will be utilized for business expansion and launching new product lines in the paint segment.

Kamdhenu Ventures Limited reported consolidated turnover of ₹26,610.48 lakhs in FY25, though it operates with no standalone business, conducting all paint operations through its subsidiary. The investment is expected to provide potential capital appreciation and align with the group's diversification strategy beyond its core steel business.

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.