Kothari Industrial Corporation Ltd

Regulation 74(5) status

• Securities received for dematerialisation during quarter ended 30 Sept 2026 were confirmed to depositories by the RTA.
• Securities dematerialised have been listed on the stock exchanges.
• Certificates received for dematerialisation were mutilated and cancelled; the depository's name substituted as registered owner within 15 days.

Overview

• 56th AGM press release documents growth strategy and expansion initiatives.

Partnerships

• Strengthened strategic relationship with Sheikh Jassim Al Thani and family.
• Two strategic collaborations identified for Ramanathapuram project; commence by year-end subject to approvals.

Education & Innovation

• IUAD collaboration to establish Hosur campus; programmes from November 2026; degrees from April 2027.

Portfolio & Growth Outlook

• Diversified portfolio across footwear, drones, fertilisers, food, and FMCG.
• Group targets minimum 3x growth next year; chairman aims 5x growth with investments and partnerships.

Projects & Future Announcements

• New projects and investment opportunities identified; to be announced after discussions and final transactions.

Kothari Industrial Corporation Limited: Closure of trading window from 01 October 2026 till the end of 48 hours from the declaration of the financial results for the quarter and half year ended 30 September 2026.

Financials (Standalone)

• Total revenue (standalone) FY2025-26: 18,173.98 lakhs, up from 8,760.23.
• Total expenses: 21,293.05 lakhs; rise from 10,502.45.
• Profit before tax: (3,119.07) lakhs; tax payable nil.
• Profit after tax: (3,119.07) lakhs; EPS: (3.02).
• Dividend for FY2025-26: Not declared.
• Net loss remains for the year; emphasis on growth strategies.

Consolidated results

• Consolidated revenue: 18,173.98 lakhs.
• Consolidated PBT: (3,119.07) lakhs.
• Share in loss of associate: (4,099.46) lakhs.
• Consolidated PAT: (7,218.53) lakhs.
• Consolidated EPS: (7.00).

Capital & share capital

• Issued paid-up equity shares: 10,80,21,773; paid-up Rs 54,01,08,865.
• Authorized share capital: Rs 75 crore.
• Preferential allotments in 2025: 1,53,03,668 shares issued.
• Delisted from Calcutta Stock Exchange; delisting effective 2 Jun 2026.
• ESOP 2025: up to 46.86 lakh options; none granted by 31-03-2026.
• Investment in associate PKFL: Rs 13,896.37 lakhs; 30% stake.

Strategic developments

• Acquired Parveen Roadways for Rs 24.04 crore; 30% PKFL stake acquired.
• Goodwill from acquisition: Rs 1,192.89 lakhs allocated to Logistics CGU.
• Melur SIPCOT land for footwear factory: Rs 32.13 crore paid.
• Kickers retail expansion: two outlets opened; plan 100 stores and 700 MBOs.
• New subsidiary: Kothari Industrial IUAD Design Private Limited; 51% held.

Governance & risk flags

• Standalone auditor Ray & Ray; qualified opinion due to subsidy note and GST issues.
• Emphasis of matter: royalty payable to Royer Group not provided; negotiations ongoing.
• Secretarial audit flagged promoter dematerialisation incomplete due to OCB; steps planned.
• Mr. R. Manoranjan appointed independent director; term five years from 17 Aug 2026.
• Fifteen board meetings held in FY2025-26; governance processes maintained.

Market actions & outlook

• Dividend policy on company website; no dividend for FY2025-26.
• Outlook: diversified, growth across fertilizers, footwear, drones, FMCG, and facility management.
• BRSR reporting to be applicable from FY2026-27; alignment underway.
• Tax disputes and regulatory risks noted; management pursuing resolutions.

Award details

• Awarding entity: Tiruppur City Municipal Corporation, Tiruppur (domestic).
• Contract: Food service provider for Perunthalaivar Kamarajar Morning Breakfast Scheme to school children.
• Contract value: Rs 24,93,35,076 (Rs 24.93 crore) for approx three years.
• Price per packet: Rs 9.08.
• Execution timeline: deposit within 7 days, agreement within 15 days from LOA.
• Scope: covers wards 11, 31, 47 and 41 of Tiruppur City Municipal Corporation.
• LOA dates: issued 17.09.2026; received 21.09.2026.
• Related party/arm's length: No promoter interest; not a related party transaction.

Launch into FMCG

• KICL unveils CHUSIP Coco Twist coconut water, marking FMCG entry.
• 200 ml packs priced ₹50; 1 Litre pack to be introduced soon.

Product attributes

• CHUSIP Coco Twist is 100% natural tender coconut water with no sugar or preservatives.

Growth plan

• Aims to build ₹2,500 crore beverage business by 2035.
• Plans 100 distributors across Tamil Nadu, Kerala and Karnataka.

Channels and expansion

• Focus on South India initially; planned expansion across general/modern/digital commerce and international markets.

CHUSIP unveiling details

• Purpose: Formal unveiling of the CHUSIP brand within the FMCG and Vending Division.
• Date and time: 17 September 2026 at 10:30 AM.
• Presenter: Mr. Rafiq Ahmed, Executive Chairman and Managing Director.
• Venue: 4th Floor, Kothari Flora, SALA, Nungambakkam, Chennai 600034.
• CHUSIP profile: non-carbonated fruit beverages and value-added variants.
• Relation to prior intimation: update to 30 April 2026 disclosure.
• Status: event scheduled; no financial implications disclosed.

Annual report access

• FY2025-26 Annual Report available on the company website.

AGM details

• 56th AGM on 30 September 2026 at 11:00 IST via VC/OAVM.

Shareholder communications

• Letters dispatched to shareholders lacking registered email with report link.

KYC & physical shares

• Reminders to update KYC for physical holders; email ID registration encouraged.

Contacts

• Queries to Company Secretary or RTA addresses provided.

Financial performance

• Standalone revenue 18,173.98 L; expenses 21,293.05 L.
• Standalone net loss 3,119.07 L; EPS -3.02.
• Consolidated revenue 18,173.98 L; consolidated loss 7,218.53 L.
• Share of associate loss 4,099.46 L; consolidated loss includes this.
• Dividend not declared for FY2025-26.

Capital structure & shareholding

• Authorized share capital Rs 75 crore; issued capital Rs 54.01 crore.
• Issued equity shares up to 10.80 crore; 1,53,03,668 shares issued in 2025.
• Total preferential allotment 1,53,03,668 shares in 2025.
• Delisted from Calcutta Stock Exchange in June 2026; listed on BSE.
• KICL ESOP 2025: up to 46,86,000 options; none granted as of 31-03-2026.

Business developments

• Acquired Parveen Roadways for Rs 2404 L; 100+ vehicles, 500 employees.
• Phoenix Kothari Footwear Private Limited: 30% stake; Rs 13,896.37 L invested.
• Goodwill recognized Rs 1,192.89 L on Parveen Roadways acquisition.
• Kickers brand expansion: two exclusive stores; plan 100 stores and 700 MBOs.
• Melur land for footwear factory: Rs 32.13 cr; deposit paid 24 May 2026.

Governance & leadership

• Board as of 31-03-2026: 1 Executive MD, 3 Independent, 2 Non-Independent, 1 Woman Independent.
• CFO changes: Hari Kishore resigned; V. Anand appointed 28-10-2025.
• Independent Directors: Gunasekaran retired; Ravikumar Perumal joined; Priya Rao and Sulaiha Banu added.
• Risk Management Committee formed 14 Feb 2026; four Board committees.

Audit & internal controls

• Statutory auditors Ray & Ray have issued a qualified opinion on standalone accounts.
• Notes cite subsidy receivable lacking documentary evidence; other risk areas flagged.
• GST credit reconciliation and tax dues are under review; some confirmations pending.
• Internal controls assessed as adequate but with noted deficiencies requiring remediation.

Operations & segments

• External revenue by segments totaled 18,168.93 L in FY26 across Fertilizers, Drone, FMCG, Hotel, Footwear, Logistics.
• Consolidated segment pre-tax loss stood at 3,121.44 L; PKFL losses included.
• Phoenix PKFL associate 30% stake; associate losses Rs 4,099.46 L.
• Consolidated assets total 31,111.75 L; segment allocations disclosed.

Risks & outlook

• Going concern risk acknowledged; management pursuing diversification and growth across segments.
• Labour Code changes could raise provident fund and gratuity liabilities; 13.81% wage impact estimated.
• Litigation: Nilgiris land repossession case pending; next hearing scheduled in July 2026.