KG Petrochem Limited has announced its unaudited standalone financial results for the quarter and nine months ended December 31, 2025. The Jaipur-based textile and technical textile manufacturer reported a challenging quarter with significant declines in both revenue and profitability compared to the previous year.

Financial Performance Overview

The company's financial performance showed mixed results across different time periods:

Quarterly Results Analysis

The third quarter of FY26 presented significant challenges for KG Petrochem. Revenue from operations declined sharply to ₹5,381.52 lacs from ₹10,476.05 lacs in Q3FY25, representing a 48.6% year-on-year decrease. Other income contributed ₹75.21 lacs during the quarter, bringing total income to ₹5,456.73 lacs.

Total expenses for the quarter amounted to ₹5,474.87 lacs, resulting in a loss before tax of ₹18.14 lacs. However, favorable tax adjustments, including a current tax credit of ₹7.46 lacs and deferred tax benefit of ₹13.33 lacs, helped the company achieve a net profit of ₹2.65 lacs.

Nine-Month Performance

For the nine-month period ended December 31, 2025, KG Petrochem demonstrated relatively better performance compared to quarterly results. Revenue from operations stood at ₹23,254.14 lacs, down 7.3% from ₹25,085.91 lacs in the corresponding period of FY25. The company maintained profitability with a net profit of ₹197.03 lacs, though this represented a 57.7% decline from ₹466.41 lacs in the previous year.

Segment-wise Performance

KG Petrochem operates across three main segments:

The textile segment, which contributes the majority of revenue, experienced the most significant impact with a substantial decline in quarterly performance.

Balance Sheet Position

As of December 31, 2025, KG Petrochem's total assets stood at ₹32,196.38 lacs compared to ₹37,368.09 lacs as of March 31, 2025. The company maintained a strong equity base of ₹18,350.30 lacs, with paid-up equity share capital of ₹522.10 lacs. Current assets decreased to ₹18,526.09 lacs from ₹22,966.01 lacs, primarily due to reduced trade receivables and inventory levels.

Board Meeting and Compliance

The Board of Directors approved these results in their meeting held on February 11, 2026. The financial results have been prepared in accordance with Indian Accounting Standards (Ind AS) and have undergone limited review by the company's statutory auditors, H.C. Bothra & Associates, Chartered Accountants.

KG Petrochem Limited has issued a corporate guarantee of ₹24.00 crores in favour of HDFC Bank to support HEX Exports Private Limited's credit facility requirements. The company made this disclosure on January 5, 2026, in compliance with regulatory obligations under SEBI listing requirements.

Corporate Guarantee Details

The guarantee arrangement involves KG Petrochem Limited acting as guarantor for HEX Exports Private Limited's borrowing from HDFC Bank. The transaction has been structured to meet the credit facility needs of the borrower while ensuring compliance with regulatory frameworks.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company also referenced the SEBI Master Circular SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024, ensuring comprehensive regulatory compliance.

The transaction has been conducted at arm's length basis with no promoter, promoter group, or group companies having any interest in this arrangement. This structure ensures transparency and adherence to corporate governance standards.

Financial Impact Assessment

According to the company's disclosure, no immediate financial or operational impact is anticipated from this guarantee arrangement. The company stated that impact would only materialise in the event of guarantee invocation by the lender, which could potentially affect the company's financial position.

Corporate Information

KG Petrochem Limited, headquartered in Jaipur, Rajasthan, operates with CIN L24117RJ1980PLC001999 and trades on BSE under scrip code 531609. The disclosure was signed by Company Secretary and Compliance Officer Navita Khunteta, ensuring proper authorisation and documentation of the corporate guarantee arrangement.