Kiri Industries Limited (KIL) has reported a solid performance for the first quarter of fiscal year 2026, with standalone revenue growing by 8% year-on-year to Rs. 181.00 crores. The company's EBITDA saw a significant improvement, rising to Rs. 17.30 crores from Rs. 13.60 crores in the same quarter last year.

Improved Profitability

KIL posted a profit after tax of Rs. 7.20 crores for Q1 FY26, marking a substantial turnaround from the loss of Rs. 1.70 crores recorded in Q1 FY25. This improvement was primarily attributed to dividends received from Lonsen Kiri, which contributed notably to the company's other income.

Consolidated Performance

On a consolidated basis, KIL's revenue reached Rs. 202.00 crores, reflecting a 10% year-on-year growth. The consolidated EBITDA stood at Rs. 18.60 crores, up from Rs. 14.30 crores in the corresponding quarter of the previous year.

DyStar Sale Update

The company provided an update on the DyStar share sale agreement with Zhejiang Longsheng Group. The deal, valued at $696.00 million, is progressing as planned, with completion expected by October 2, 2025, and an extendable deadline of November 3, 2025.

Copper Project Development

KIL is developing a copper project at Pipavav Port, Gujarat. The company anticipates partial operations to commence in FY27, with a target revenue of Rs. 12,000.00 crores in the first operational year. The project is expected to be fully operational by FY29-30, potentially generating over Rs. 40,000.00-45,000.00 crores in revenue based on current copper prices.

Revised Revenue Guidance

Due to ongoing industry headwinds, management has revised its revenue guidance downward by 20%. The new standalone revenue target is Rs. 800.00-900.00 crores, while the consolidated revenue target is Rs. 1,200.00-1,300.00 crores for the current fiscal year.

Legal Costs and Future Investments

The company reported legal costs of approximately Rs. 7.00 crores for the quarter. Looking ahead, KIL plans to invest half of the proceeds from the DyStar sale into the copper project as equity.

Manish Kiri, Chairman and Managing Director, commented on the results: "Despite industry challenges, Kiri Industries demonstrated operational resilience by maintaining a strong focus on its core business segments, liquidity management, and capital structure. We continued our efforts in optimizing the product mix, rationalizing costs, and enhancing internal efficiencies, staying committed to long-term value creation."

As Kiri Industries navigates through industry headwinds and progresses with its strategic initiatives, investors will be keenly watching the completion of the DyStar sale and the development of the copper project, which are expected to significantly impact the company's future growth trajectory.

Kiri Industries Limited (KIL), a leading manufacturer of dyes and intermediates, has announced a significant change in its shareholding structure. The company's promoter group, led by Manishkumar P Kiri, has increased its stake from 6.82% to 13.64% through the conversion of warrants into equity shares.

Warrant Conversion Details

The Board of Directors of Kiri Industries approved the allotment of 4,393,592 equity shares to the promoter group. This allotment was made on a preferential basis through the conversion of an equal number of warrants. The transaction has resulted in a substantial increase in the promoters' voting rights within the company.

Impact on Share Capital

Following this conversion, Kiri Industries' equity share capital has expanded from Rs. 556.29 crore (55.63 million shares) to Rs. 600.23 crore (60.02 million shares). This represents an increase of approximately 7.9% in the total number of outstanding shares.

Promoter Group Composition

The promoter group involved in this transaction includes:

• Manishkumar P Kiri
• Anupama Manishkumar Kiri
• Arunaben Pravinbhai Kiri
• Hemil Manishkumar Kiri

These individuals are listed as the primary acquirers, along with several other persons acting in concert.

Regulatory Compliance

The disclosure of this transaction was made in compliance with Regulation 29(2) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. This regulation requires prompt disclosure of any significant changes in shareholding patterns, particularly those involving promoter groups.

Company Overview

Kiri Industries Limited, established in 1998, has emerged as one of India's largest manufacturers and exporters of dyes, dye intermediates, and basic chemicals. The company is known for its 'Zero Effluent' approach and has a strong presence in over 50 countries across seven continents.

This move by the promoter group to increase their stake could be seen as a sign of confidence in the company's future prospects. However, investors are advised to conduct their own research and consider market conditions before making any investment decisions.