Kothari Fermentation's profit turned into a loss. Energy costs ate 24% of revenue.
Stable revenue couldn't offset a power-and-fuel bill that consumed nearly a quarter of turnover, swinging the company from a ₹0.81 crore profit to a ₹2.99 crore loss.
— 2 earlier stories on Kothari Fermentation & Biochem Ltd. →What's new
- Kothari Fermentation reported a full-year net loss of ₹2.99 crore, reversing the prior year's ₹0.81 crore profit.
- Power and fuel costs for the year were ₹26.95 crore, consuming nearly a quarter of annual turnover.
- The board appointed Arun K. Garg & Associates as internal auditors for the 2026-27 fiscal year.
Why this matters
This is a cost crisis on a stable top line. Revenue held at ₹112 crore, but the energy bill alone is 24% of that. For a company with a ₹61 crore market cap, the energy line item is now the dominant story.
What we're watching
- Whether FY27 results show any relief from power and fuel cost inflation.
- If the new auditors flag anything in their first review.
- How management addresses the energy cost structure.
The full read
Kothari Fermentation's ₹0.81 crore FY25 profit turned into a ₹2.99 crore loss in FY26. Revenue held at ₹112.13 crore, so the collapse is a pure cost story. Power and fuel bills ran to ₹26.95 crore. That's 24% of the company's entire turnover. For a firm with a ₹61 crore market capitalization, that's not a minor headwind. It's the whole story. The Q4 net profit of ₹1.27 crore looks like a recovery, but a deferred tax credit propped it up. The underlying business remained underwater. The board also brought in Arun K. Garg & Associates as internal auditors for FY27. A standard move, but one that follows a year where the cost line consumed the company. The problem is structural energy exposure.
Questions answered
- How did the company swing from profit to loss?
- Revenue was nearly flat at ₹112.13 crore, but power and fuel costs jumped to ₹26.95 crore. This single cost line is 24% of revenue and directly caused the swing to a ₹2.99 crore net loss.
- What does the Q4 profit actually represent?
- The Q4 net profit of ₹1.27 crore was supported by a deferred tax credit. Strip that out, and the underlying business likely remained unprofitable in the final quarter.
- Why change auditors in a loss year?
- The board appointed Arun K. Garg & Associates as internal auditors for FY27. The move is procedural, but it comes after a year where costs overwhelmed the business.
Story so far
All notes on KFBL →- 29 May 2026 · 10:04 PM IST Kothari Fermentation's profit turned into a loss. Energy costs ate 24% of revenue.
- 1d ago Kothari Fermentation's power bill erased its profit
- 1d ago Kothari Fermentation swings to ₹2.99 cr full-year loss as power costs bite