Khaitan Chemicals & Fertilizers Limited (KCFL) has reported a significant turnaround in its financial performance for the second quarter of the fiscal year 2025-26. The company's Q2 results showcase a remarkable improvement across key financial metrics, indicating a robust recovery in its operations.

Financial Highlights

KCFL has demonstrated a strong financial performance in Q2 FY2025-26:

• Revenue Growth: The company's revenue surged to 310.86 crore, marking a substantial increase of 34.78% compared to 230.65 crore in the same quarter of the previous year.

• Profitability Boost: KCFL reported a net profit of 21.50 crore, a significant turnaround from a loss of 3.10 crore in Q2 FY2024-25.

• EBITDA Improvement: The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) showed remarkable growth, rising to 31.10 crore from 8.60 crore in the corresponding quarter last year.

• Margin Expansion: EBITDA margin expanded significantly to 10.08% from 3.73%, indicating improved operational efficiency and cost management.

Segment Performance

KCFL operates in two primary segments:

1. Fertilizers: This segment continues to be the major revenue driver for the company.
2. Chemicals & Specialty Chemicals: This segment has shown promising growth, contributing to the overall performance improvement.

Balance Sheet Position

As of September 30, 2025, KCFL reported:

• Total assets of 7,001.32 crore
• Total equity of 2,656.99 crore

This indicates a strong balance sheet position, providing a solid foundation for future growth and expansion plans.

Outlook

The company's impressive turnaround in Q2 FY2025-26 positions it well for sustained growth in the coming quarters. However, investors should keep an eye on factors such as raw material costs, regulatory changes in the fertilizer industry, and overall economic conditions that may impact KCFL's performance.

As Khaitan Chemicals & Fertilizers continues to strengthen its market position in both the fertilizer and chemical segments, it will be crucial to monitor how the company leverages this momentum for long-term value creation for its shareholders.

Note: All financial figures are in Indian Rupees (INR).

Khaitan Chemicals & Fertilizers announced a slight increase in its promoter group shareholding following a recent acquisition of shares by one of its promoters.

Promoter Share Acquisition

The Majestic Packaging Co Pvt. Ltd., a promoter of Khaitan Chemicals & Fertilizers, has purchased 2,500 equity shares through the open market on September 17, 2025. This acquisition has resulted in an increase in the aggregate promoter group shareholding to 67.42% of the company's issued capital.

Regulatory Compliance

In compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company promptly informed the stock exchanges about this change in promoter shareholding. Sejal Maheshwari, Company Secretary & Compliance Officer of Khaitan Chemicals & Fertilizers, officially communicated this information to both the BSE and NSE on September 18, 2025.

Upcoming Investor Meeting

In a separate announcement, Khaitan Chemicals & Fertilizers has scheduled an investor/analyst meeting for Monday, October 6, 2025. The company's management team will be participating in a virtual group meeting with Phillip Capital India's Private Client Group. The company has assured that no unpublished price-sensitive information will be shared during this meeting.

Market Impact

While the increase in promoter shareholding is relatively small, it may be viewed positively by the market as it potentially signals the promoter group's confidence in the company's prospects. However, investors are advised to conduct their own research and analysis before making any investment decisions.

Khaitan Chemicals & Fertilizers continues to maintain transparency with its shareholders and the market by promptly disclosing such changes in shareholding patterns and upcoming investor interactions.