Kemp's operating loss doubled to ₹221.42 lakhs, masked by a property gain
The core business lost more money in FY26, but a large swing in other income delivered a positive total for the year.
— 1 earlier story on Kemp & Company Ltd. →What's new
- Kemp's audited FY26 net loss doubled to ₹221.42 lakhs from ₹110.00 lakhs in FY25.
- Total income turned positive at ₹3,555.70 lakhs, driven by a large swing in other income.
- The balance sheet shows investment property of ₹4,540.07 lakhs from the VIP Industries deal.
Why this matters
The operating loss is widening, not shrinking. The positive total is an accounting effect from the property transaction, not a sign of business improvement. For a ₹121 crore market cap company, a single asset now dominates the balance sheet.
What we're watching
- Whether the investment property generates rental income or stays a static valuation item.
- If the operating loss trend continues in the coming quarters.
- The liquidity impact of the sharp rise in current investments.
The full read
Kemp's FY26 results tell two different stories. The operating business is losing more money. The net loss doubled to ₹221.42 lakhs from ₹110.00 lakhs. But total income swung to a positive ₹3,555.70 lakhs. That gap is explained by a massive jump in other income, an accounting swing tied to the property deal. The balance sheet now carries ₹4,540.07 lakhs in investment property from the VIP Industries acquisition. For a ₹121 crore market cap firm, that asset is outsized. The filing confirms the core trade is weaker. The positive bottom line is not cash. It is a valuation adjustment.
Questions answered
- Why did net loss widen while total income turned positive?
- The net loss, tracking operational performance, doubled. The positive total of ₹3,555.70 lakhs came from a large swing in other income, a non-operating accounting line.
- What is the investment property on the balance sheet?
- It is ₹4,540.07 lakhs in value, reflecting a property acquisition from VIP Industries that was disclosed earlier. Its inclusion has reshaped the nano-cap's balance sheet.
- Is Kemp profitable?
- On a total income basis, yes, with ₹3,555.70 lakhs for FY26. On a net loss basis, no, as the company lost ₹221.42 lakhs from its core operations.
- How significant is the property asset to Kemp's size?
- The ₹4,540.07 lakhs investment property is a large asset for a company with a ₹121 crore market capitalization, making its valuation heavily dependent on this holding.
Story so far
All notes on KEMP →- 25 May 2026 · 6:31 PM IST Kemp's operating loss doubled to ₹221.42 lakhs, masked by a property gain
- 42d ago Kemp's net loss widens. A related-party property deal masks the damage.