Khaitan Chemical has reported robust financial performance for the third quarter, showcasing significant improvements across all major financial parameters. The company demonstrated strong operational efficiency and revenue growth during the period.

Financial Performance Overview

The company's financial metrics for Q3 reflect substantial year-on-year improvements across the board:

Revenue Growth and Operational Excellence

Khaitan Chemical achieved revenue of ₹2.65 billion in Q3, marking a substantial 32.5% increase from ₹2 billion in the corresponding quarter of the previous year. This revenue expansion demonstrates the company's ability to scale its operations effectively and capture market opportunities.

The company's operational efficiency showed remarkable improvement, with EBITDA reaching ₹326 million compared to ₹108 million in Q3 of the previous year. This represents an impressive growth of over 200%, indicating enhanced cost management and operational leverage.

Profitability Enhancement

Net profit performance was particularly strong, with the company reporting ₹204 million compared to ₹126 million in the same quarter last year, representing a growth of approximately 62%. This improvement in bottom-line performance reflects the company's effective execution of its business strategy.

The EBITDA margin expansion from 5.41% to 12.25% year-on-year represents a significant improvement of 684 basis points, highlighting the company's enhanced operational efficiency and cost optimization measures during the quarter.

Khaitan (India) Limited , a diversified company with interests in electrical goods, sugar, and agriculture, has announced its unaudited financial results for the second quarter and half-year ended September 30, 2025. The company also reported the incorporation of two new wholly-owned subsidiaries.

Financial Performance

For the quarter ended September 30, 2025, Khaitan (India) Limited reported the following key financial metrics:

The company's revenue showed a significant increase of 32.55% compared to the same quarter in the previous year. However, profit before tax decreased by 45.47%.

Segment Performance

Khaitan (India) Limited operates in three main business segments:

1. Electrical Goods: This segment remained the primary revenue generator, contributing ₹1,937.48 lakhs to the total revenue.
2. Sugar: The sugar segment reported revenue of ₹20.26 lakhs.
3. Agriculture: No specific revenue figures were provided for this segment in the quarterly breakdown.

New Subsidiaries

The company's Board of Directors has taken note of the incorporation of two new wholly-owned subsidiaries:

1. Khaitan Strategy Limited
2. Khaitan Fans and Appliances Limited

These new entities are expected to strengthen the company's market position, although specific details about their roles and objectives were not disclosed.

Auditor's Observations

The company's statutory auditors, K. C. Bhattacherjee & Paul, have issued a qualified opinion in their limited review report. The qualification pertains to the company's sugar mill operations, which have been suspended for an extended period. The auditors believe that the assets, liabilities, expenses, and cash flows related to the sugar mill should be recognized and disclosed as discontinued operations, rather than as part of continuing business operations.

Management's Response

In response to the auditor's qualification, the management stated that the sugar division remains one of the core business segments of the company. They expect to resume operations once the required working capital is arranged. The management is exploring various options to resolve the current situation and remains optimistic about potential positive developments in the future.

Balance Sheet Highlights

As of September 30, 2025, Khaitan (India) Limited reported:

Conclusion

While Khaitan (India) Limited has shown revenue growth in the second quarter of 2025, the company faces challenges, particularly in its sugar division. The incorporation of new subsidiaries may indicate strategic moves to diversify and strengthen its market position. Investors and stakeholders will likely be watching closely to see how the company addresses the auditor's concerns and manages its various business segments in the coming quarters.