Cosmo Ferrites Ltd (523100)
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, Cosmo Ferrites' revenue was ₹29.0 Cr (+7.7% year on year, +6.6% on the previous quarter), and net profit ₹1.0 Cr; the operating margin was 10.2%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹29.0 | +7.7% | +6.6% |
| Operating profit | ₹3.0 | +27.0% | +16.1% |
| Net profit | ₹1.0 | — | +280.8% |
| EPS (₹) | 0.83 | — | +277.3% |
| Operating margin | 10.2% | — | — |
📢 Recent Corporate Announcements
Cosmo Ferrites reported a turnaround in Q1 FY27, achieving a PAT of ₹0.99 Cr compared to ₹0.05 Cr in the same quarter last year. Revenue rose to ₹28.98 Cr, representing approximately 29% of the total TTM revenue, driven by higher domestic realizations and export volumes. EBITDA margins improved to 12.9% despite rising raw material and logistics costs. The company is focusing on high-growth segments like EV and Solar, supported by a 35% anti-dumping duty on Chinese imports effective since March 2025.
- Revenue for Q1 FY27 reached ₹28.98 Cr, up from ₹26.92 Cr in Q1 FY25.
- PAT turned positive at ₹0.99 Cr for the quarter, a significant recovery from the ₹1.58 Cr net loss in FY26.
- EBITDA increased 24.6% YoY to ₹3.74 Cr from ₹3.00 Cr in the previous year's first quarter.
- Total installed capacity stands at 3,600 MT for Ferrite Powder and 3,900 MT for Ferrite Components.
- Export markets now span over 50 countries, contributing 30% of total revenue.
Cosmo Ferrites reported a strong start to FY27, with PAT rising to Rs 0.99 Cr, a significant jump from Rs 0.26 Cr in the previous quarter and Rs 0.05 Cr in the year-ago period. Revenue grew 7.6% YoY to Rs 28.98 Cr, driven by higher sales volumes and improved realizations in the domestic market. EBITDA margins improved to approximately 12.9% for the quarter, compared to the TTM average of 6.3%, despite rising logistics and raw material costs. The company is successfully pivoting toward high-growth sectors like EV and Solar, adding new customers and commercializing advanced ferrite powders.
- Revenue from operations grew to Rs 28.98 Cr in Q1 FY27, up from Rs 26.92 Cr in Q1 FY26.
- PAT increased nearly 20-fold YoY to Rs 0.99 Cr from a low base of Rs 0.05 Cr.
- EBITDA reached Rs 3.74 Cr, a 24.7% increase compared to Rs 3.00 Cr in the same quarter last year.
- Successfully commercialized new ferrite powders specifically for EV, automotive, and solar segments.
- Added 1 new customer in the magnetics business during the quarter to support EV and solar growth.
Cosmo Ferrites reported a significant turnaround in profitability for the quarter ended June 30, 2026, with Net Profit reaching ₹0.99 Cr compared to ₹0.05 Cr in the year-ago period. Revenue from operations grew 7.6% YoY to ₹28.98 Cr, which is approximately 29% of the TTM revenue. A notable factor in the improved bottom line was a conditional waiver of ₹0.44 Cr in interest on promoter loans for the quarter. While the operational performance improved, the company continues to operate with a high debt-to-equity ratio of 3.00.
- Net Profit surged to ₹0.99 Cr in Q1 FY27 from ₹0.05 Cr in Q1 FY26.
- Revenue from operations increased to ₹28.98 Cr, up 7.6% from ₹26.92 Cr YoY.
- Promoters conditionally waived interest of ₹0.44 Cr for the quarter, with a right to recompense later.
- Earnings Per Share (EPS) improved to ₹0.83 from ₹0.04 in the corresponding quarter last year.
- Finance costs for the quarter stood at ₹1.28 Cr compared to ₹1.85 Cr in Q1 FY26.
Cosmo Ferrites reported a net profit of Rs 0.99 Cr for Q1 FY27, a significant improvement from Rs 0.05 Cr in the same quarter last year. Revenue from operations grew 11.4% YoY to Rs 28.98 Cr, representing approximately 29% of the total FY26 revenue. A key contributor to the bottom line was a conditional waiver of interest on promoter unsecured loans amounting to Rs 0.44 Cr for the quarter. The company's EPS rose to Rs 0.83 from Rs 0.04 YoY, signaling a potential recovery after a loss-making FY26.
- Revenue from operations increased to Rs 28.98 Cr, up 11.4% from Rs 26.02 Cr in June 2025.
- Net profit reached Rs 0.99 Cr compared to a marginal profit of Rs 0.05 Cr in the year-ago period.
- Promoters conditionally waived interest of Rs 0.44 Cr for the current quarter to support the financial position.
- Basic and Diluted EPS improved to Rs 0.83 from Rs 0.04 in Q1 FY26.
- Total expenses stood at Rs 28.44 Cr, with raw material costs accounting for Rs 11.16 Cr.
Cosmo Ferrites has scheduled a board meeting for August 10, 2026, to approve un-audited financial results for the quarter ended June 30, 2026. The company is currently in a recovery phase, having reported a marginal profit of Rs 0.26 Cr in the March 2026 quarter following several loss-making quarters. Investors will be tracking if the 35% anti-dumping duty on Chinese imports and the expansion into Ni-Zn ferrites have started reflecting in improved margins. With a high Debt-to-Equity ratio of 3.00, the upcoming results are critical for assessing the company's ability to service its Rs 69 Cr debt.
- Board meeting scheduled for August 10, 2026, to approve Q1 FY27 results
- Company reported a TTM revenue of Rs 99 Cr against a market capitalization of Rs 251 Cr
- Previous quarter (March 2026) revenue was Rs 27.19 Cr with a net profit of Rs 0.26 Cr
- Debt-to-Equity remains high at 3.00 with total debt of Rs 69 Cr
- Promoter holding remains stable at 63.65% as of June 2026
Cosmo Ferrites has initiated the dispatch of its FY 2025-26 Annual Report via web-links to shareholders without registered email addresses. The company's 40th Annual General Meeting (AGM) is scheduled for August 26, 2026, via Video Conferencing. This follows a fiscal year where the company reported a net loss of ₹1.58 crore on revenue of ₹98.59 crore. Investors should note the high debt-to-equity ratio of 3.00 as they review the full annual disclosures.
- 40th Annual General Meeting scheduled for August 26, 2026, at 03:00 P.M.
- Annual Report for FY 2025-26 made available via web-link for shareholders as of July 24, 2026.
- Company reported FY26 revenue of ₹98.59 crore with an operating profit margin of 6.33%.
- Net loss for FY26 stood at ₹1.58 crore, an improvement from the ₹5.65 crore loss in FY25.
- Current annual capacity stands at 3,600 MT for Ferrite Powder and 3,900 MT for Ferrite Components.
Cosmo Ferrites reported a 15.1% YoY revenue growth to ₹98.59 Cr for FY26, while significantly narrowing its net loss to ₹1.59 Cr from ₹5.66 Cr in FY25. The company is benefiting from a 35% anti-dumping duty on Chinese imports and is expanding its Ni-Zn ferrite portfolio, adding 10 new customers. Despite the operational improvement, the company remains highly leveraged with a Debt-to-Equity ratio of 3.0 and a relatively small net worth of ₹23 Cr. No dividend was recommended for the fiscal year due to the accumulated losses.
- Net Sales increased to ₹98.59 Cr in FY26, up from ₹85.66 Cr in the previous fiscal year.
- Net Loss narrowed by 72% to ₹1.59 Cr compared to a loss of ₹5.66 Cr in FY25.
- Redeemed 2,00,000 preference shares worth ₹2 Cr, reducing outstanding preference capital to nil.
- Export markets contributed 27% of total revenue, while domestic sales accounted for 73%.
- Maintained an annual installed capacity of 3,900 Tons for Ferrite Powder and 3,600 Tons for Ferrite Components.
Cosmo Ferrites has scheduled its 40th Annual General Meeting for August 26, 2026, to adopt FY26 financial statements and vote on director appointments. A critical agenda item is the approval of managerial remuneration for three years starting April 2026, even in cases of inadequate profits, which is notable given the company's FY26 net loss of ₹1.58 crore. Shareholders will also vote on the re-appointment of Dr. Himalyani Gupta as an Independent Director for a second term until 2032. The company continues to operate under high leverage with a debt-to-equity ratio of 3.00.
- 40th Annual General Meeting scheduled for August 26, 2026, via video conferencing
- Remote e-voting period set from August 23 to August 25, 2026, with a cut-off date of August 19
- Seeking special resolution for managerial remuneration for 3 years starting April 1, 2026, despite potential profit inadequacy
- Proposed re-appointment of Dr. Himalyani Gupta as Independent Director for a 5-year term until May 2032
- FY26 financial results to be adopted, showing a net loss of ₹1.58 crore on revenue of ₹98.59 crore
Financial Performance
Revenue Growth by Segment
Net revenue for Q2 FY26 grew 19.3% YoY to INR 25.30 Cr compared to INR 21.20 Cr in Q2 FY25, primarily driven by a significant increase in domestic volume. FY24 revenue saw a 9% decline to INR 98.26 Cr due to a 15% drop in realization prices.
Geographic Revenue Split
The company derives 54% of its revenue from the domestic Indian market and 46% from export markets including Germany, UK, Italy, USA, and China.
Profitability Margins
Profitability has been under pressure with a net loss of INR 2.01 Cr in FY24. Q2 FY26 reported a net loss of INR 0.57 Cr, showing improvement from a loss of INR 1.97 Cr in Q2 FY25. CARE expects PBILDT margins to stabilize between 10%-13% in the medium term.
EBITDA Margin
EBITDA margin for Q2 FY26 improved to 8% (INR 2.12 Cr) from 5% (INR 1.06 Cr) in Q2 FY25, representing a 100% increase in absolute EBITDA value YoY.
Capital Expenditure
The company is investing in a Top Hat Kiln to add 25 Ton per month (300 TPA) of capacity for high permeability ferrite cores. While major capex is not planned for the near term, significant investments are being made in automation and efficiency enhancement.
Credit Rating & Borrowing
CARE reaffirmed ratings at CARE BBB-; Stable for long-term facilities (INR 47.46 Cr) and CARE A3 for short-term facilities (INR 7.00 Cr). Borrowing is supported by INR 22.00 Cr in unsecured loans from promoters.
Operational Drivers
Raw Materials
Primary raw materials include Iron Oxide, Manganese Oxide, and Zinc Oxide used for Manganese-Zinc-based Soft Ferrite Cores, and Nickel for Ni-Zn ferrites.
Import Sources
Not specifically disclosed, though the company is moving towards indigenized products under the 'Vocal for Local' initiative.
Capacity Expansion
Current annual capacity stands at 3,600 MT for Ferrite Powder and 3,900 MT for Ferrite Components. Planned expansion includes 25 MT per month via the new Top Hat Kiln.
Raw Material Costs
Raw material costs are a significant sensitivity; FY24 saw a 15% decline in realization prices due to dumping of low-priced materials from China, which squeezed margins.
Manufacturing Efficiency
Focusing on automation and manpower optimization to enhance robust manufacturing and efficiency.
Logistics & Distribution
The company maintains global stocking availability to support its 46% export revenue share.
Strategic Growth
Expected Growth Rate
19.3%
Growth Strategy
Growth will be driven by the 35% anti-dumping duty on Chinese imports effective March 2025, expansion into the Ni-Zn ferrite portfolio (10 new customers added), and targeting high-end applications with the new Top Hat Kiln capacity.
Products & Services
Soft Ferrite Cores (Mn-Zn and Ni-Zn based), Ferrite Powder, and wire-wound magnetic components used in power electronics.
Brand Portfolio
Cosmo Ferrites
New Products/Services
Ni-Zn ferrites and high permeability ferrite cores for high-end applications; 10 customers were added for Ni-Zn products last year.
Market Expansion
Targeting domestic growth through indigenized products and expanding the global reach which currently spans over 50 countries.
Market Share & Ranking
Striving to become the market and product leader in soft ferrites; specific market share percentage not disclosed.
Strategic Alliances
Management support agreement with Cosmo First Limited for strategy, marketing, and investor relations.
External Factors
Industry Trends
The industry is shifting toward high-end applications and automation. The imposition of a 35% anti-dumping duty in March 2025 is a major regulatory shift favoring domestic manufacturers.
Competitive Landscape
Faces intense competition from low-priced Chinese imports, though this is mitigated by the new 35% import duty.
Competitive Moat
Moat is built on 3+ decades of soft ferrite excellence, the widest product portfolio in the segment, and regulatory protection via anti-dumping duties.
Macro Economic Sensitivity
Highly sensitive to European economic conditions (46% export exposure) and domestic industrial production volumes.
Consumer Behavior
Increasing preference for indigenized products ('Vocal for Local') in the domestic power electronics sector.
Geopolitical Risks
Geopolitical turmoil and recession in Europe have previously led to subdued export sales and inventory corrections.
Regulatory & Governance
Industry Regulations
Subject to Ministry of Finance anti-dumping duties (up to 35%) on imported Soft Ferrite Cores from China effective March 18, 2025.
Environmental Compliance
ISO 14001:2015 certified, ROHS certified, and REACH compliant.
Legal Contingencies
Pending litigations are disclosed in Note 24 of the financial statements; specific case values were not provided in the summary.
Risk Analysis
Key Uncertainties
Sustainability of margins against raw material price volatility and the potential for further geopolitical disruptions in key export markets.
Geographic Concentration Risk
Significant concentration in Europe for exports and 54% concentration in the Indian domestic market.
Third Party Dependencies
High dependency on bank working capital limits with 91% average utilization.
Technology Obsolescence Risk
Mitigated by investments in Ni-Zn ferrites and high-permeability cores for modern power electronics.
Credit & Counterparty Risk
Adequate liquidity with INR 8.47 Cr in cash and bank balances as of March 31, 2025.
