Kothari Fermentation swings to ₹2.99 cr loss as power costs hit 24% of revenue
Annual profit vanished as the company's energy bill consumed nearly a quarter of its topline.
— 2 earlier stories on Kothari Fermentation & Biochem Ltd. →What's new
- Kothari Fermentation reported a FY26 net loss of ₹2.99 crore, reversing a ₹0.81 crore profit.
- Power and fuel costs exceeded ₹26.95 crore, about 24% of annual revenue of ₹112.13 crore.
- Q4 net profit was ₹1.27 crore, aided by a deferred tax credit.
Why this matters
Revenue was nearly flat, but profitability collapsed because the energy bill was too high. For a nano-cap with a ₹61 crore market cap, a ₹2.99 crore loss is material. The Q4 profit shows what the business can do with a one-off credit, but the full-year picture is the problem.
What we're watching
- If FY27 results show power and fuel costs staying at 24% of revenue or falling.
- Whether the new internal auditors flag the cost structure.
- Management's plan to hedge or reduce energy exposure.
The full read
Kothari Fermentation posted a full-year net loss of ₹2.99 crore, swinging from a ₹0.81 crore profit in the prior year. Revenue barely moved, settling at ₹112.13 crore. What changed was the energy bill. Power and fuel costs exceeded ₹26.95 crore, or 24% of annual turnover. For a company with a market cap of just ₹61 crore, that cost structure leaves almost no margin for error. The fourth quarter offered a brief reprieve with a ₹1.27 crore profit, but that required a deferred tax credit to materialize. The annual picture is what counts. A routine auditor change was also approved, but the real issue is whether management can bring energy costs below that 24% threshold in FY27. If it can't, the business will keep bleeding.
Questions answered
- What caused the profit swing at Kothari Fermentation?
- Revenues were nearly stable at ₹112.13 crore, but the company's power and fuel bill of ₹26.95 crore, or 24% of turnover, overwhelmed margins. That single cost line erased the ₹0.81 crore profit from the prior year and produced a ₹2.99 crore loss.
- Was there any positive news in the quarterly breakdown?
- The fourth quarter netted ₹1.27 crore in profit. That result was supported by a deferred tax credit, so it is not a clean read of the operating business.
- What does a 24% energy-cost ratio mean for a fermentation company?
- Energy is a variable input, and at 24% of revenue it becomes the dominant swing factor for profitability. Any sustained increase from here directly hits the bottom line.
- What was the other news in the filing?
- The board approved appointing Arun K. Garg & Associates as the new internal auditor for FY27. This is a routine annual appointment.
Kothari Fermentation & Biochem Ltd.
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All notes on KFBL →- 29 May 2026 · 10:04 PM IST 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
- 45d ago Kothari Fermentation posts a ₹2.99 cr full-year loss after costs bite