Khemani Distributors swings to ₹13 cr loss as securities bet sours
A heavy loss in the securities segment wiped out gains from the FMCG division, dragging the company from a ₹13.7 cr profit to a net loss.
— 1 earlier story on Khemani Distributors & Marketing Ltd. →What's new
- Company swung to a ₹13 cr net loss from a ₹13.7 cr profit in FY25.
- Securities segment lost ₹17.25 cr, offsetting 42% growth in FMCG revenue.
- Total income dropped 14% to ₹79.36 cr for the fiscal year.
Why this matters
For a company with a market cap of ₹275 cr, a loss of this size represents nearly 5% of its total valuation. The reliance on a volatile securities segment to drive earnings has backfired, creating a sharp disconnect between its core FMCG growth and its bottom line.
What we're watching
- Whether the board moves to reduce exposure to the securities segment.
- Sustainability of the 42% growth rate in the FMCG division.
- Any management commentary on the 14% decline in total income.
The full read
Khemani Distributors ended FY26 with a standalone net loss of ₹13 crore, a sharp reversal from the ₹13.7 crore profit recorded in the prior year. The primary culprit is the company's securities segment, which posted a loss of ₹17.25 crore. This result overshadowed the performance of the FMCG division, where revenues climbed 42% to over ₹96 crore.
It failed.
Total income for the year dropped 14% to ₹79.36 crore. With a market capitalization of ₹275 crore, this loss is equivalent to nearly 5% of the company's total valuation, and the board has appointed Ravindra Dhakar & Associates as the internal auditor for FY27 to address the ongoing volatility in the securities business.
Questions answered
- What caused the swing to a net loss?
- The loss was driven by the securities segment, which recorded a loss of ₹17.25 cr. This performance completely erased the gains made by the FMCG division.
- How did the FMCG segment perform?
- The FMCG segment grew revenue by roughly 42%, reaching over ₹96 cr compared to ₹67.70 cr in the previous year.
- What was the impact on total income?
- Total income for the year fell by approximately 14% to ₹79.36 cr.
- Did the auditors raise any concerns?
- No. The statutory auditors, B Chordia & Co, provided an unmodified audit opinion on the annual results.
Story so far
All notes on KDML →- 28 May 2026 · 8:40 PM IST Khemani Distributors swings to ₹13 cr loss as securities bet sours
- today Khemani Distributors swings to ₹13 cr loss on securities trading