KSE Ltd (519421)
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, KSE's revenue was ₹454 Cr (+9.1% year on year, +10.9% on the previous quarter), and net profit ₹0.9 Cr (-97.6% year on year); the operating margin was -0.1%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹454 | +9.1% | +10.9% |
| Operating profit | ₹-0.2 | to loss | loss narrowed |
| Net profit | ₹0.9 | -97.6% | from loss |
| EPS (₹) | 0.29 | -97.6% | from loss |
| Operating margin | -0.1% | — | — |
📢 Recent Corporate Announcements
KSE Ltd conducted its 62nd Annual General Meeting on August 29, 2026, reviewing FY26 operational performance and key strategic initiatives. The company confirmed a final dividend of ₹7.50 per share (total FY26 dividend ₹12.50 per share, amounting to a ₹40 crore payout). Management highlighted that the Tamil Nadu feed operations turned profitable and now contribute ~31% of total cattle feed sales, alongside ongoing expansion into Karnataka and planned entry into Maharashtra. Additionally, the Ice Cream division achieved profitability in Q1 FY27, while the Oil Cake Processing division delivered ₹258.30 crore in revenue with ₹70.69 crore in segment profit.
- Final dividend of ₹7.50 per share declared, bringing total FY26 dividend payout to ₹12.50 per share (aggregating ₹40 crore)
- Tamil Nadu business turned profitable, accounting for approximately 31% of total cattle feed sales
- Oil Cake Processing Division posted ₹258.30 crore in revenue (up 22%) and ₹70.69 crore in segment profit
- Ice Cream Division turned profitable in Q1 FY27, and expansion of Animal Feed into Maharashtra is planned
KSE Limited has issued a corrigendum to the notice convening its 62nd Annual General Meeting scheduled for 29 August 2026. The Board of Directors decided to withdraw Item No. 15, which pertained to the approval for transferring a company car (Toyota Innova Hycross) to retiring Director Mr. M.P. Jackson as a retirement benefit. Following this withdrawal, the total number of items to be transacted stands reduced from 16 to 15, and the remaining item has been renumbered accordingly. Remote e-voting will remain open from 26 August to 28 August 2026 for the remaining resolutions.
- Item No. 15 regarding transfer of company vehicle to Director Mr. M.P. Jackson withdrawn by the Board.
- Total agenda items for the 62nd AGM reduced from 16 items to 15 items.
- 62nd AGM scheduled for Saturday, 29th August 2026 at 3:00 PM IST in Irinjalakuda.
- Remote e-voting window runs from 26th August 2026 (9:00 AM IST) to 28th August 2026 (5:00 PM IST).
KSE Ltd reported Q1 FY27 revenue from operations of ₹453.67 Cr, an increase of 9.06% YoY compared to ₹416.00 Cr in Q1 FY26. However, net profit plunged 97.5% YoY to ₹0.94 Cr from ₹38.55 Cr due to a 29.3% jump in raw material costs to ₹374.02 Cr. On a sequential basis, the company rebounded from a net loss of ₹3.73 Cr in Q4 FY26. The Board also approved the appointment of Mr. Dony Akkarakaran George as Managing Director for a 3-year term effective June 1, 2026.
- Q1 Revenue grew 9.06% YoY to ₹453.67 Cr (vs ₹416.00 Cr in Q1 FY26)
- Net profit collapsed 97.5% YoY to ₹0.94 Cr compared to ₹38.55 Cr in the previous year's quarter
- Cost of materials consumed jumped 29.3% YoY to ₹374.02 Cr from ₹289.17 Cr
- Turned around sequentially from a net loss of ₹3.73 Cr in Q4 FY26 to ₹0.94 Cr profit
- Reversed ₹14.00 Cr of ad hoc provision for contract labour benefits out of ₹15.00 Cr carried
KSE Ltd reported Q1 FY27 standalone revenue from operations of ₹453.67 Cr, an increase of 9.06% YoY from ₹416.00 Cr. However, Net Profit dropped sharply by 97.55% YoY to ₹0.94 Cr compared to ₹38.55 Cr in Q1 FY26, primarily driven by a 29.34% surge in raw material consumption costs to ₹374.02 Cr. Sequentially, the company returned to profitability from a net loss of ₹3.73 Cr in Q4 FY26. Segmentally, the Oil Cake Processing division swung into an EBIT loss of ₹3.74 Cr compared to an EBIT profit of ₹29.89 Cr in Q1 FY26, while the Dairy division improved to an EBIT of ₹0.61 Cr.
- Revenue from operations rose 9.06% YoY to ₹453.67 Cr from ₹416.00 Cr in Q1 FY26
- Net profit dropped 97.55% YoY to ₹0.94 Cr (EPS ₹0.30) vs ₹38.55 Cr (EPS ₹12.05) in Q1 FY26
- Cost of materials consumed jumped 29.34% YoY to ₹374.02 Cr from ₹289.17 Cr
- Oil Cake Processing division swung to an EBIT loss of ₹3.74 Cr vs an EBIT profit of ₹29.89 Cr YoY
- Company reversed ₹4.00 Cr (₹400 lakhs) of ad hoc employee benefit provisions related to temporary/contract labour
KSE Ltd reported steady FY26 performance with revenue of Rs 1,680.48 crore, up slightly from Rs 1,649.53 crore in FY25. The company maintained its leadership in the cattle feed segment despite a shrinking cattle population in Kerala by expanding into Tamil Nadu and Karnataka. A total dividend of Rs 12.50 per share (face value Rs 1) was declared for the year, representing a healthy yield relative to the current price. Management is also evaluating a strategic diversification into the bio-waste management sector to drive future growth.
- Revenue from operations stood at Rs 1,680.48 crore for FY26, a growth of 1.8% YoY.
- Total dividend for FY26 is Rs 12.50 per share, including a final dividend of Rs 7.50.
- Net worth increased to Rs 349.50 crore as of March 31, 2026, with a low debt-to-equity ratio of 0.07.
- Profit After Tax (PAT) for the year was Rs 84.04 crore with an EPS of Rs 26.26.
- Identified Maharashtra as the next target market for geographic expansion beyond South India.
KSE Ltd reported a steady FY26 revenue of Rs 1,680.48 Cr, a marginal increase from Rs 1,649.53 Cr in FY25, while PAT declined to Rs 84.04 Cr from Rs 91.31 Cr. The Board has proposed a final dividend of Rs 7.50 per share, which combined with the Rs 5 interim dividend, totals Rs 12.50 for the year. The company is actively diversifying its geographic footprint into Tamil Nadu and Maharashtra to counter a shrinking cattle population in its home market of Kerala. A one-time ad hoc provision of Rs 5 Cr was made for potential liabilities under the New Labour Codes.
- Revenue from operations reached Rs 1,680.48 Cr in FY26, up from Rs 1,649.53 Cr in FY25.
- Total dividend for FY26 stands at Rs 12.50 per share, including a proposed final dividend of Rs 7.50.
- Net worth increased to Rs 349.50 Cr as of March 31, 2026, from Rs 293.54 Cr in the previous year.
- Ad hoc provision of Rs 5 Cr recognized for estimated liabilities under the New Labour Codes framework.
- Animal Feed division remains the core contributor, with new market entry planned for Maharashtra.
KSE Ltd has issued its 62nd AGM notice, proposing a final dividend of ₹7.50 per share, which brings the total FY26 dividend to ₹12.50 (approx. 6% yield). The total dividend outlay of ₹40 crore represents a significant 47.6% payout of the FY26 PAT of ₹84 crore. Key agenda items include the re-appointment of the Managing Director with a performance-linked bonus structure and a proposal to increase the Authorised Share Capital. The cut-off date for dividend eligibility is August 21, 2026.
- Total dividend of ₹12.50 per share for FY26, including a ₹7.50 final dividend and ₹5.00 interim dividend.
- Aggregate dividend payout of ₹40 crore against FY26 net profit of ₹84 crore (~47.6% payout ratio).
- Managing Director's performance bonus linked to achieving 100% of budgeted profit, with a maximum cap of 25% additional remuneration.
- Cut-off date for determining shareholder eligibility for dividend and e-voting is August 21, 2026.
- Proposal to increase Authorised Share Capital and adopt a new set of Articles of Association (AoA).
KSE Ltd has fixed August 21, 2026, as the record date to determine shareholder eligibility for its final dividend. The company will implement a book closure period from August 23 to August 29, 2026, for the purpose of the Annual General Meeting and dividend distribution. While the specific dividend amount was not disclosed in this filing, the company reported a full-year FY26 PAT of 84 Cr despite a loss of 3.73 Cr in the March 2026 quarter. The dividend is subject to shareholder approval at the upcoming AGM.
- Record date for dividend eligibility is August 21, 2026.
- Book closure period scheduled from August 23 to August 29, 2026.
- Company reported TTM Revenue of 1,680 Cr and PAT of 84 Cr.
- Maintains a strong financial position with a low Debt-to-Equity ratio of 0.07.
KSE Ltd has officially fixed August 21, 2026, as the record date for determining shareholder eligibility for the final dividend of FY 2025-26. This follows a fiscal year where the company generated Rs 1,680 Cr in revenue and Rs 84 Cr in PAT, despite a net loss of Rs 3.73 Cr in the final quarter (Mar 2026). The dividend amount per share was not specified in this specific filing but is subject to approval at the upcoming Annual General Meeting. The company maintains a low debt-to-equity ratio of 0.07, supporting its ability to distribute profits.
- Record date for final dividend entitlement fixed as August 21, 2026
- Dividend pertains to the full financial year 2025-2026
- Announcement follows a TTM PAT of Rs 84 Cr and TTM Revenue of Rs 1,680 Cr
- Company reported a net loss of Rs 3.73 Cr in the most recent quarter (Mar 2026)
KSE Ltd has scheduled a board meeting for August 14, 2026, to consider and approve the unaudited financial results for the quarter ended June 30, 2026. This announcement is critical as it follows a weak March 2026 quarter where the company reported a net loss of ₹3.73 crore and negative operating margins. Investors will be monitoring for a recovery in the animal feed and dairy segments, which have faced margin pressure from input costs and regulated pricing. The trading window for insiders has been closed since July 1, 2026.
- Board meeting scheduled for August 14, 2026, to review Q1 results.
- Financials to cover the three-month period ended June 30, 2026.
- Trading window closed from July 1, 2026, until 48 hours post-announcement.
- Company reported a TTM revenue of ₹1,680 crore with a low OPM of 6.5%.
- Previous quarter (Mar 2026) saw a net loss of ₹3.73 crore compared to a ₹38.55 crore profit in Jun 2025.
Financial Performance
Revenue Growth by Segment
Consolidated revenue declined 2.02% to INR 1,649.53 Cr in FY25. Segment performance: Animal Feed revenue was INR 1,382.2 Cr (83.8% of total), declining 7.2% YoY; Oil Cake Processing revenue was INR 210.68 Cr (12.77% of total), growing 51.3% YoY; Dairy revenue was INR 56.65 Cr (3.43% of total), growing 3.49% YoY.
Geographic Revenue Split
The company maintains a leading market share in Kerala, which remains its primary revenue contributor. It is actively expanding its footprint in Tamil Nadu, particularly in the dairy and cattle feed segments, to offset demand erosion in subsidy-impacted markets.
Profitability Margins
Profitability saw a significant recovery in FY25: Net Profit Margin improved from 1.05% to 5.54%; Operating Profit Margin (EBIT/Revenue) rose from 1.61% to 7.59%; Return on Net Worth surged from 8.02% to 35.01%.
EBITDA Margin
EBITDA margin improved significantly to 7.26% in FY25 from 2.01% in FY24, driven by moderation in raw material prices for animal feed and improved realization margins in the oil cake processing division.
Capital Expenditure
The company is exercising capital discipline, deferring heavy investments in capacity or advertising until profitability stabilizes. Historical liquidity is strong with INR 162 Cr in unencumbered cash and mutual fund investments as of March 2025.
Credit Rating & Borrowing
CRISIL reaffirmed ratings at 'CRISIL A-/Stable/CRISIL A2+' for bank loan facilities (INR 96 Cr) and fixed deposits (INR 25 Cr). Interest coverage is robust at 51.55 times, up from 9.56 times YoY.
Operational Drivers
Raw Materials
Key raw materials include maize, de-oiled cakes, and coconut oil cakes. These are susceptible to high price volatility, with historical operating margins fluctuating between -0.1% and 9.1% due to input cost swings.
Import Sources
Not disclosed in available documents, though the company mentions tracking global market dynamics and optimizing import strategies for the Oil Cake Processing Division.
Capacity Expansion
Current capacity is not specified in MT; however, the company operates multiple animal feed plants, oil cake processing units, and dairy facilities. Expansion is currently focused on market reach in Tamil Nadu rather than immediate physical capacity hikes.
Raw Material Costs
Raw material costs are the primary driver of margins; softening prices in FY25 allowed EBITDA to rise to 7.26%. The company uses strategic sourcing and long-term procurement planning to mitigate volatility.
Manufacturing Efficiency
Manufacturing efficiency is managed through technology-driven ERP systems and regular internal audits across all operational units to ensure control adequacy.
Logistics & Distribution
Distribution is handled through an extensive network of over 1,300 dealers. Logistics costs are impacted by global energy market volatility and regional infrastructure constraints.
Strategic Growth
Expected Growth Rate
3.06%
Growth Strategy
Growth will be achieved by expanding market share in Tamil Nadu, exploring new geographies, and realigning the dairy portfolio toward premium, high-margin ice cream variants. The company is also implementing selective price adjustments across SKUs to improve realizations.
Products & Services
Cattle feed, processed milk (6,054 KL sold in FY25), ice cream (1,540 KL sold in FY25), and coconut oil cake.
Brand Portfolio
KSE (formerly Kerala Solvent Extractions Ltd).
New Products/Services
Strategic shift toward premium ice cream variants to replace low-margin frozen desserts; dairy division achieved a turnaround profit of INR 26.4 lakhs in FY25.
Market Expansion
Targeting Tamil Nadu for dairy and feed expansion and exploring newer geographies to offset demand erosion in subsidy-heavy markets.
Market Share & Ranking
Leader in the cattle feeds industry in Kerala with a 60-year vintage.
External Factors
Industry Trends
The cattle feed industry is characterized by intense competition from state-run entities and unorganized players. There is a trend toward nutritionally balanced feeds, though a price-sensitive farmer base limits premium segment growth.
Competitive Landscape
Key competitors include state-run Kerala Feeds Ltd and Kerala Co-operative Milk Marketing Federation Ltd (Milma), alongside small unorganized players.
Competitive Moat
Durable moat built on a 60-year brand vintage, a dominant regional market position in Kerala, and a robust distribution network of 1,300+ dealers and on-call veterinary support.
Macro Economic Sensitivity
Highly sensitive to agricultural commodity prices and rural demand. Geopolitical tensions disrupt commodity markets, raising transportation costs and import price volatility.
Consumer Behavior
Shift in the dairy segment toward premiumization and profitable sub-segments like high-margin ice cream variants.
Geopolitical Risks
Global market dynamics and geopolitical tensions are monitored as they directly impact the cost of imported raw materials and energy.
Regulatory & Governance
Industry Regulations
Operations are heavily influenced by government-regulated retail prices for milk in Kerala and subsidies provided to cooperative competitors, which limit pricing flexibility.
Legal Contingencies
The company noted that balances in accounts, except for banks and a few trade receivables, are subject to confirmation. No specific High Court or Supreme Court case values were disclosed.
Risk Analysis
Key Uncertainties
Raw material price volatility (maize/oil cakes) and government pricing interventions in the dairy sector are the primary risks, potentially impacting margins by 4-5%.
Geographic Concentration Risk
High concentration in Kerala; expansion into Tamil Nadu is a strategic move to diversify geographic risk.
Third Party Dependencies
Dependency on a large network of 1,300+ dealers for distribution; credit exposure to these dealers is tightly managed.
Technology Obsolescence Risk
The company uses an in-house developed ERP solution that is not yet a full-fledged end-to-end solution, identified as a 'Key Audit Matter' due to potential IT control gaps.
Credit & Counterparty Risk
Increased dealer and distributor credit exposure in the ice cream and dairy divisions; Debtors Turnover Ratio remains high at 1274.86 times.
