Kokuyo Camlin Reports Q2 FY26 Loss Amid Revenue Decline and Auditor's Modified Conclusion

Kokuyo Camlin Limited , a well-known stationery and art materials manufacturer, has released its financial results for the second quarter of fiscal year 2026, revealing a challenging period for the company. The results, accompanied by a modified conclusion from the auditors, highlight both financial struggles and ongoing accounting concerns.

Financial Performance

For the quarter ended September 30, 2025, Kokuyo Camlin reported:

Metric	Q2 FY26	Q2 FY25	Change
Net Loss	₹70.85	Profit of ₹179.00	Negative swing
Revenue from Operations	₹7,597.60	₹8,237.00	-7.76%

The company's performance for the first half of FY26 also showed a decline:

Metric	H1 FY26	H1 FY25	Change
Net Loss	₹100.55	Profit of ₹216.00	Negative swing

Auditor's Modified Conclusion

The company's auditors expressed a modified conclusion in their limited review report, citing a significant issue from the previous year:

Inventory discrepancies of ₹2,356.81 lakh were identified in the previous year.
These discrepancies were between physical quantities recorded in books and actual physical inventory.
The management has not identified the possible impact of these discrepancies on prior periods.
This constitutes a departure from Indian Accounting Standards, which require retrospective correction of material prior period errors.

Management Response and Board Meeting

The company's board of directors approved the unaudited financial results in a meeting held on November 4, 2025. The meeting commenced at 2:30 p.m. and concluded at 4:05 p.m.

Forensic Audit and Ongoing Investigations

In response to the inventory discrepancies:

An independent external agency was engaged on November 7, 2024, to conduct a forensic audit.
The audit covered the period from April 2021 to September 2024 at one of the company's plants.
The forensic audit report, dated February 11, 2025, is available on the Stock Exchange website along with management comments.

Conclusion

Kokuyo Camlin's Q2 FY26 results reflect a challenging period for the company, with a shift from profit to loss and declining revenues. The ongoing issues related to inventory discrepancies and the auditor's modified conclusion underscore the need for the company to address these accounting concerns promptly. Investors and stakeholders will likely be watching closely to see how Kokuyo Camlin navigates these challenges and works to improve its financial performance in the coming quarters.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+1.02%	+3.19%	-1.57%	-2.41%	-38.89%	+78.72%

Kokuyo Camlin , a leading stationery and art materials manufacturer, has reported a significant turnaround in its financial performance for the second quarter. The company's latest financial results showcase a remarkable shift from loss to profit, accompanied by a slight increase in revenue.

Financial Highlights

Metric	Q2 FY2025-26	Q2 FY2024-25	Change
Net Profit	₹78.60 million	₹(106.00) million	Turned Profitable
Revenue	₹1.74 billion	₹1.70 billion	+2.35%

Kokuyo Camlin has successfully reversed its financial trajectory, posting a net profit of ₹78.60 million in Q2 FY2025-26, compared to a loss of ₹106.00 million in the same period last year. This represents a significant improvement in the company's bottom line.

The company's revenue for the quarter reached ₹1.74 billion, showing a modest growth of 2.35% from ₹1.70 billion in the corresponding quarter of the previous year. This increase, albeit small, indicates a positive trend in the company's top-line performance.

Detailed Financial Performance

According to the unaudited financial results approved by the Board of Directors:

Total revenue from operations for Q2 FY2025-26 stood at ₹1,743.80 million, compared to ₹1,725.20 million in Q2 FY2024-25.
The company reported a profit before tax of ₹1,057.49 million for the quarter, a substantial improvement from a loss of ₹1,408.34 million in the same quarter last year.
Earnings per share (EPS) for the quarter was ₹0.78, compared to a negative EPS of ₹1.06 in Q2 FY2024-25.

Market Response

The financial results were announced after market hours on November 4, 2025. Investors and market analysts will likely closely monitor the market's response to these results in the coming trading sessions.

Conclusion

Kokuyo Camlin's Q2 FY2025-26 results demonstrate a significant improvement in profitability, despite only a modest increase in revenue. This performance indicates the company's ability to enhance operational efficiency and manage costs effectively. As the company continues to navigate the competitive stationery and art materials market, stakeholders will be watching closely to see if this positive trend can be sustained in the coming quarters.

Note: All financial figures are based on the unaudited results for the quarter ended September 30, 2025, as reported by the company.