Why Did Kesoram Industries Report a Q1 Loss of Rs 99.3 Crore?
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Synopsis
Kesoram Industries has announced a significant widening of its consolidated net loss to Rs 99.3 crore in Q1 FY26. This loss, greater than the previous year's Rs 61.4 crore, coincides with a revenue drop of 9.3%. What does this mean for the company's future as it navigates its demerger and refocuses on its core segments?
Key Takeaways
- Kesoram Industries reported a net loss of Rs 99.3 crore in Q1 FY26.
- Revenue decreased by 9.3% to Rs 61 crore.
- Expenses fell to Rs 82.98 crore, down 27%.
- Post-demerger focus on Rayon and chemicals.
- Exceptional loss of Rs 89.8 crore impacted overall results.
Mumbai, July 14 (NationPress) Kolkata-based Kesoram Industries disclosed a larger consolidated net loss of Rs 99.3 crore for the first quarter (Q1) of FY26, in contrast to a loss of Rs 61.4 crore recorded in the same quarter of the previous fiscal year (Q1 FY25).
The firm also experienced a revenue dip, which decreased by 9.3 percent to Rs 61 crore in Q1 FY26, down from Rs 67.3 crore in Q1 FY25, as indicated in its stock exchange report.
The company’s EBITDA (earnings before interest, taxes, depreciation, and amortisation) loss was noted at Rs 10.5 crore, slightly exceeding the loss of Rs 8.41 crore from the previous year.
This quarter also recorded an exceptional loss of Rs 89.8 crore, which had a substantial effect on the bottom line.
On a positive note, total expenses for the quarter fell to Rs 82.98 crore, down almost 27 percent from Rs 113.38 crore in the same quarter last fiscal.
However, some cost elements exhibited an uptick. The cost of materials consumed increased by 8.27 percent year-on-year (YoY) to Rs 31.8 crore, alongside a 17 percent rise in employee benefit costs to Rs 17.97 crore.
Kesoram Industries, which has a rich history dating back to 1919, was previously engaged in the cement sector under the brands ‘Birla Shakti Cement’ and ‘Vasavadatta Cement’.
Earlier this year in March, the company’s cement operations were acquired by UltraTech Cement Limited.
Following the demerger, Kesoram is now primarily focused on its Rayon, transparent paper (TP), and chemicals divisions, marketed under the ‘Kesoram Rayon’ brand.
Originating in cotton textiles, the Kolkata-headquartered company has since diversified into rayon, cement, tires, and chemicals.
With the cement division now separated, Kesoram aims to enhance and solidify its standing in the rayon and related sectors.
Point of View
I believe Kesoram Industries faces significant challenges ahead. The widening loss underscores the importance of strategic agility in a competitive market. The company's pivot towards rayon and chemicals could either mitigate risks or amplify them, depending on execution. It's crucial for stakeholders to monitor these developments closely as they unfold.
NationPress
14/07/2025
Frequently Asked Questions
What was Kesoram Industries' loss in Q1 FY26?
Kesoram Industries reported a consolidated net loss of Rs 99.3 crore for the first quarter (Q1) of FY26.
How much did Kesoram's revenue decline?
The company's revenue fell by 9.3% to Rs 61 crore in Q1 FY26 from Rs 67.3 crore in Q1 FY25.
What were the total expenses for Kesoram in Q1 FY26?
Total expenses for Kesoram in Q1 FY26 were Rs 82.98 crore, down nearly 27% from the previous year.
What is Kesoram Industries focusing on post-demerger?
Post-demerger, Kesoram Industries is primarily focusing on its Rayon, transparent paper, and chemicals segments.
Who acquired Kesoram's cement business?
Kesoram's cement business was acquired by UltraTech Cement Limited in March 2023.
