Kalyani Steels Q1FY26 Net Profit Rises 18.2% YoY to ₹616.83 Mn; Revenue Slips Sequentially

Pune, July 31, 2025 – Kalyani Steels Ltd (NSE: KSL, BSE: 500235) has reported financial results for Q1FY26. There was a reduction in revenues and profitability (both on a yearly and sequential quarterly basis). The decline in profits came despite stable raw material costs, a moderate increase in manufacturing expenses, and a significant reduction in finance costs.

The company’s stock plummeted by 3.01% and was trading at ₹894.00 at 03:10 PM. The low-high range remained between ₹879 and ₹934. The stock trading volume remained decent, with slightly over 2 lakh shares exchanged. The company’s P/E ratio is 15.70 compared to the industrial average of 33.62. Despite today’s fall, the stock has rallied by more than 27% in the past 3 months.

Financial Highlights (Consolidated)

In Q1 FY26, the company reported a 4% year-on-year decline in revenue from operations to ₹4,427.67 million, while total income dropped 3.5% to ₹4,580 million. Despite the top-line pressure, EBITDA rose 8.7% YoY to ₹1,005.38 million, reflecting improved operational efficiency. Profit after tax surged 18.2% YoY to ₹616.83 million, and EPS climbed to ₹14.13 from ₹11.96. However, on a sequential basis, revenue, EBITDA, and PAT all declined sharply—by 18.7%, 18.8%, and 23.1% respectively—indicating a softer quarter compared to Q4 FY25.

Segment and Expense Insights

As reported, the raw material costs remained stable at ₹2,259.91 million, while manufacturing expenses eased to ₹656.26 million from ₹694.45 million in the previous quarter. A sharp decline in finance costs to ₹26.54 million further supported net margin expansion.

Standalone Performance

In Q1 FY26, the company reported a 4% year-on-year decline in revenue from operations to ₹4,427.67 million, with a sharper 18.7% drop on a sequential basis. Despite the revenue dip, profit after tax rose 18.2% YoY to ₹609.65 million, while total comprehensive income grew 18.9% to ₹607.22 million. However, both metrics declined by over 23% and 27% respectively, compared to Q4 FY25. EPS improved to ₹13.97 from ₹11.81 in Q1 FY25, reflecting stronger year-on-year profitability.

Management’s Outlook

R.K. Goyal, Managing Director, noted in the filing that cost control measures and stable operations supported the company’s performance despite a softer demand environment. No exceptional items were reported during the quarter.

Subsidiary and Joint Operations

The consolidated results include DGM Realties Private Limited (99.66% holding) and proportionate results from the joint operation Hospet Steels Ltd, where the company accounted for ₹133 million in expenses during the quarter.

Company Overview

Kalyani Steels Ltd is part of the Kalyani Group and is listed on both NSE and BSE. The company is engaged in the manufacturing of forging and engineering quality carbon and alloy steels and primarily serves the automotive, engineering, and energy sectors. It operates from its facility in Pune and participates in a joint venture at Hospet.

REF:https://nsearchives.nseindia.com/corporate/KSL_31072025120111_293_Results_31_07_2025_June_2025_Qrtr_.pdf

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