Kothari Fermentation swings to ₹2.99 cr full-year loss as power costs bite
The nano-cap fermentation company erased last year's ₹0.81 cr profit. A ₹1.27 cr Q4 profit was a tax-credit mirage.
— 2 earlier stories on Kothari Fermentation & Biochem Ltd. →What's new
- KFBL posted a consolidated net loss of ₹2.99 cr for FY26, a reversal from the ₹0.81 cr profit in FY25.
- Full-year revenue slipped to ₹112.13 cr as elevated power and fuel costs squeezed margins.
- Q4 profit of ₹1.27 cr was largely supported by a deferred tax credit.
Why this matters
This is a full-year swing from profit to a meaningful loss for a company with a market cap of just ₹61 crore. The annual loss wipes out the prior year's earnings and then some. The Q4 profit, while welcome, is not representative of operational performance given the tax-credit support.
What we're watching
- Whether management can offset the sustained energy-cost pressure in FY27.
- The new internal auditor's first compliance review.
- Any operational changes to address the cost structure.
The full read
Kothari Fermentation swung to a ₹2.99 crore net loss in FY26, reversing the ₹0.81 crore profit from the year before. Revenue held relatively flat at ₹112.13 crore, but the bottom line cratered as power and fuel costs stayed elevated. The Q4 profit of ₹1.27 crore looks tidy on its own, but it leans on a deferred tax credit. Strip that out, and the operating picture for the year is grim. For a company with a market cap of ₹61 crore, the ₹2.99 crore loss is not a rounding error. It is a material erosion of the equity base from a single year of cost pressure. The board has also brought in a new internal auditor for FY27, a routine move, but the compliance review will land on a balance sheet that now carries a full-year loss.
Questions answered
- What drove Kothari Fermentation to a full-year loss?
- Elevated power and fuel costs pressured margins throughout the year, dragging the company to a ₹2.99 crore net loss despite stable revenue of ₹112.13 crore.
- Is the Q4 profit sustainable?
- The ₹1.27 crore Q4 profit was largely supported by a significant deferred tax credit, not core operations. It does not reflect the underlying cost pressure that defined the year.
- How does this compare to the prior year?
- The company posted a ₹0.81 crore profit in FY25. The FY26 net loss of ₹2.99 crore is a sharp deterioration, erasing the prior year's entire earnings.
- What is the scale of the loss relative to the company?
- The ₹2.99 crore net loss is material for a nano-cap with a market capitalization of ₹61 crore, representing roughly 5% of its entire market value.
Story so far
All notes on KFBL →- 29 May 2026 · 7:58 PM IST Kothari Fermentation swings to ₹2.99 cr full-year loss as power costs bite
- 1d ago Kothari Fermentation's profit turned into a loss. Energy costs ate 24% of revenue.
- 1d ago Kothari Fermentation's power bill erased its profit