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.

Kamdhenu Limited has announced the lapse of 27,50,000 warrants after allottees failed to exercise their conversion option within the stipulated 18-month period. The company has consequently forfeited Rs 13.21 crore, representing 25% of the issue price collected upfront during the warrant allotment.

Warrant Details and Lapse

The warrants, initially allotted on February 22, 2024, had a conversion deadline of August 22, 2025. As per the company's official intimation to the stock exchanges, the warrants have officially lapsed effective August 23, 2025, following the allottees' failure to exercise their conversion rights into equity shares.

Entities Involved and Forfeiture Breakdown

Four entities were involved in this warrant issue, with varying numbers of unexercised warrants and corresponding forfeiture amounts:

Regulatory Compliance

Kamdhenu Limited has made this disclosure in compliance with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company's Company Secretary and Compliance Officer, Khem Chand, confirmed that the upfront amount stands forfeited as per the SEBI (Issue of Capital and Disclosure Requirement) Regulations, 2018.

Impact on Share Capital

The lapse of these warrants means that the potential dilution of equity that would have occurred upon their conversion has been averted. Kamdhenu Limited's existing shareholders will not face the dilution that would have resulted from the issuance of 27.5 lakh new equity shares.

This development underscores the importance of timely decision-making by warrant holders and highlights the financial implications of not exercising conversion rights within the specified period.