Kothari Fermentation posts a ₹2.99 cr full-year loss after costs bite
Profit swung to a loss for FY26 as power and fuel costs climbed. The Q4 profit of ₹1.27 cr relied on a deferred tax credit.
— 2 earlier stories on Kothari Fermentation & Biochem Ltd. →What's new
- Kothari Fermentation reported a ₹2.99 cr net loss for FY26, reversing a ₹0.81 cr profit in FY25.
- Annual revenue dipped to ₹112.13 cr as power and fuel costs rose.
- Q4 net profit was ₹1.27 cr, supported by a deferred tax credit.
Why this matters
A nano-cap company posting a full-year loss after a profitable year is a clear negative shift. The swing is driven by operational costs, not a revenue collapse, making the margin problem the central issue. The Q4 profit is less reassuring given the one-off tax benefit.
What we're watching
- Management commentary on the power/fuel cost outlook and any hedging plans.
- Whether the Q4 momentum, excluding the tax credit, holds into Q1 FY27.
- The new internal auditor's first compliance report.
The full read
Kothari Fermentation & Biochem lost ₹2.99 crore in FY26, swinging from a ₹0.81 crore profit the year before. Revenue slipped slightly to ₹112.13 crore, but the story is the cost line: power and fuel prices ran higher all year and crushed the margin. A ₹1.27 crore Q4 profit softens the blow, though it depended on a deferred tax credit. For a company with a ₹61 crore market cap, a loss this size is material. The board also swapped in a new internal auditor, Arun K. Garg & Associates, for FY27. The near-term test is whether costs can come back in line without a tax credit doing the heavy lifting.
Questions answered
- How did Kothari Fermentation's profitability change year-over-year?
- The company swung from a net profit of ₹0.81 crore in FY25 to a net loss of ₹2.99 crore in FY26. The loss deepened despite revenue staying broadly flat at ₹112.13 crore.
- What drove the full-year loss?
- Sustained pressure from elevated power and fuel costs eroded margins throughout the year. The report cites these costs specifically as the primary headwind against stable revenue.
- Why was the Q4 result better than the full-year result?
- The company posted a Q4 profit of ₹1.27 crore, but this was largely supported by a significant deferred tax credit. Stripping out that one-off item, the underlying quarterly performance is less clear.
- What governance change did the board approve?
- The board appointed M/s Arun K. Garg & Associates as the internal auditor for the 2026-27 financial year to handle compliance and control functions.
Kothari Fermentation & Biochem Ltd.
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All notes on KFBL →- 29 May 2026 · 7:58 PM IST Kothari Fermentation posts a ₹2.99 cr full-year loss after costs bite
- 45d ago Kothari Fermentation swings to ₹2.99 cr loss as power costs hit 24% of revenue
- 45d ago Kothari Fermentation posts ₹3 cr full-year loss as energy costs bite