Kanchi Karpooram Limited, a leading camphor manufacturer, has released its financial results for the second quarter of fiscal year 2026, revealing a mixed performance with declining revenue but improved profit margins.

Revenue and Profit Analysis

The company posted revenue of ₹38.77 crore for Q2 FY26, marking a significant decline of 16.7% from ₹46.53 crore in Q2 FY25. Despite the revenue drop, Kanchi Karpooram managed to increase its net profit to ₹1.87 crore, up from ₹1.16 crore in the same quarter last year.

Segment Performance

Kanchi Karpooram operates in two business segments: Camphor and Real Estate. The financial results show:

The company's primary focus remains on the Camphor segment, which contributed the entire revenue for the quarter.

Balance Sheet Highlights

As of September 30, 2025, Kanchi Karpooram reported:

Inter-company Loan Agreement Amendment

Kanchi Karpooram has amended its inter-company loan agreement with its wholly-owned subsidiary, Kanchi Agro Products Private Limited (KAPPL). Key changes include:

1. Waiver of interest from October 1, 2024, to November 13, 2025.
2. Conversion of the demand loan to an interest-free term loan due on March 31, 2028.

This amendment, while not at arm's length, reflects the company's strategy to support its subsidiary's operations.

Management Commentary

Suresh Shah, Managing Director of Kanchi Karpooram Limited, stated, "While we faced challenges in revenue generation this quarter, our focus on operational efficiency has helped improve our profit margins. The amendment to the inter-company loan agreement with our subsidiary is part of our long-term strategy to strengthen our group's financial position."

Auditor's Review

P. Chandrasekar LLP, the company's statutory auditors, have issued an unmodified opinion on the unaudited financial results for Q2 FY26, providing assurance on the accuracy of the financial statements.

Outlook

The company acknowledges that market-driven fluctuations in camphor prices and input costs may cause variations in revenue and operating results from quarter to quarter. Kanchi Karpooram continues to adapt to these market dynamics while focusing on maintaining profitability.

Kanchi Karpooram Limited , a company listed on the BSE, has announced a significant financial decision aimed at optimizing its treasury management. The Board of Directors, during a meeting held on October 16, 2025, approved an investment of up to Rs. 25 crores in corporate bonds, debentures, and other debt instruments.

Investment Details

The company plans to utilize its excess and surplus funds for this investment, which will be executed in one or more tranches over time. Here's a breakdown of the key aspects of this decision:

Objectives and Strategy

The primary objective behind this investment decision is to ensure effective treasury and cash management. By investing idle or surplus funds in low-risk fixed income instruments, Kanchi Karpooram Limited aims to earn returns while maintaining a conservative risk profile.

Regulatory Compliance

The company has made this disclosure in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Board meeting where this decision was made commenced at 11:00 AM and concluded at 11:30 AM on the same day.

This strategic move by Kanchi Karpooram Limited reflects an approach to financial management, potentially enhancing the company's overall financial performance through optimized use of available funds.