Krishanveer Forge profit doubles on land sale gain
The company reported a net profit of ₹11.38 crore for FY26, aided by a ₹3.49 crore exceptional gain from a land transfer.
What's new
- Net profit doubled to ₹11.38 crore for the year ended March 31, 2026.
- Revenue grew 7.8% to ₹89.30 crore.
- Board recommended a final dividend of ₹3.00 per share.
Why this matters
The profit growth relies on a one-time land sale rather than core operational expansion. Without the ₹3.49 crore exceptional gain, the bottom-line improvement would be much smaller.
What we're watching
- Whether the company maintains margin growth without further asset sales.
- The impact of the ₹3.00 dividend on cash reserves.
- Nitin Rajore's performance in his renewed five-year term.
The full read
Krishanveer Forge closed FY26 with a net profit of ₹11.38 crore, nearly double the ₹5.64 crore recorded the previous year. Revenue growth was more modest, rising 7.8% to ₹89.30 crore. The primary driver behind the bottom-line surge is a ₹3.49 crore exceptional gain from a land transfer, a deal the company first flagged in February without providing terms. The board responded to the improved liquidity by recommending a final dividend of ₹3.00 per share, a 30% payout on face value. For a company with a market cap of ₹136 crore, this land sale is a material event that masks the underlying operational performance. The dividend provides a 2.4% yield. The sustainability of these earnings remains the open question.
Questions answered
- How much did the land sale contribute to the bottom line?
- The land transfer provided an exceptional gain of ₹3.49 crore. The company first mentioned this transaction in February 2026 but did not disclose the value until this filing.
- What is the dividend payout for shareholders?
- The board recommended a final dividend of ₹3.00 per equity share, which is 30% of the face value. This represents a yield of approximately 2.4% based on the current market valuation.
- How did core revenue perform during the year?
- Revenue from operations reached ₹89.30 crore, a 7.8% increase over the previous fiscal year.
- Are there any changes to the company's leadership?
- The board confirmed the re-appointment of Nitin Rajore as Whole Time Director. His new term lasts for five years, beginning in December 2026.