Khemani Distributors swings to ₹13 cr loss on securities trading
A 42% revenue jump in the core FMCG business was erased by a ₹17.25 cr loss in the company's securities segment.
— 1 earlier story on Khemani Distributors & Marketing Ltd. →What's new
- Net profit of ₹13.70 cr in FY25 flipped to a loss of ₹12.96 cr in FY26.
- Total income dropped 13.8% to ₹79.36 cr.
- FMCG distribution revenue grew 42% to ₹96.10 cr, but securities trading losses hit ₹17.25 cr.
Why this matters
The company’s core FMCG business is growing, but its non-core securities trading is volatile enough to wipe out all operational gains. For a company with a market cap of ₹275 cr, a loss equal to nearly 5% of its total value is a significant blow to equity. The results show a business model currently sabotaged by its own side bets.
What we're watching
- Whether the board limits exposure to the securities segment.
- Sustained growth in the FMCG distribution division.
- Any further commentary on the volatility of non-core operations.
The full read
Khemani Distributors & Marketing ended FY26 with a standalone net loss of ₹12.96 crore, a sharp reversal from the ₹13.70 crore profit reported the previous year. Total income fell 13.8% to ₹79.36 crore. The divergence between the company's two business units is stark. While the core FMCG distribution segment grew revenue by 42% to ₹96.10 crore, these gains were entirely undone by a ₹17.25 crore loss in the securities trading segment. For a company with a market capitalization of ₹275 crore, this loss represents a hit of nearly 5% to its total market value. While the statutory audit returned an unmodified opinion, the financial results demonstrate a high-risk profile where non-core trading activities mask the underlying operational progress of the distribution business. The open question for shareholders is whether the board intends to continue these volatile side bets.
Questions answered
- What caused the swing from profit to loss?
- The company recorded a segment loss of ₹17.25 crore in its securities division. This loss completely offset the gains made in its core FMCG distribution business.
- How did the core FMCG business perform?
- The FMCG distribution segment showed resilience with revenues growing by roughly 42% to reach ₹96.10 crore.
- Did the auditors raise any concerns?
- No. Statutory auditors B Chordia & Co. provided an unmodified opinion, confirming the accounts were prepared in accordance with accounting standards.
- Who is the new internal auditor?
- The board appointed M/s. Ravindra Dhakar & Associates as internal auditors for the 2026-27 financial year.
Story so far
All notes on KDML →- 28 May 2026 · 9:02 PM IST Khemani Distributors swings to ₹13 cr loss on securities trading
- today Khemani Distributors swings to ₹13 cr loss as securities bet sours