KG Petrochem Ltd (531609)
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, KG Petrochem's revenue was ₹57.8 Cr (-38.6% year on year, -28.8% on the previous quarter), and net profit ₹0.5 Cr (-77.1% year on year); the operating margin was 7.4%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹57.8 | -38.6% | -28.8% |
| Operating profit | ₹4.3 | -39.8% | -20.5% |
| Net profit | ₹0.5 | -77.1% | -80.1% |
| EPS (₹) | 0.95 | -77.1% | -80.0% |
| Operating margin | 7.4% | — | — |
📢 Recent Corporate Announcements
At its 46th AGM held on August 26, 2026, shareholders of KG Petrochem approved the re-appointment of executive leadership for a 3-year term (August 1, 2026, to July 31, 2029). This includes Managing Director Manish Singhal, Chairman & WTD Gauri Shanker Kandoi, and WTD Prity Singhal. Additionally, shareholders approved the appointment of Anjal Kejriwal as a Non-Executive Independent Director for a 5-year tenure effective May 27, 2026, to May 26, 2031.
- Re-appointment of Manish Singhal as Managing Director for 3 years from August 1, 2026, to July 31, 2029
- Re-appointment of Gauri Shanker Kandoi as Chairman cum WTD for 3 years from August 1, 2026, to July 31, 2029
- Re-appointment of Prity Singhal as Whole Time Director for 3 years from August 1, 2026, to July 31, 2029
- Appointment of Anjal Kejriwal as Non-Executive Independent Director for 5 years from May 27, 2026, to May 26, 2031
KG Petrochem Limited announced that shareholders at its 46th Annual General Meeting approved the re-appointment of key promoter-directors for a 3-year term from August 1, 2026, to July 31, 2029. This includes Managing Director Manish Singhal, Whole Time Director Prity Singhal, and Chairman cum Whole Time Director Gauri Shanker Kandoi. Additionally, shareholders approved the appointment of Anjal Kejriwal as Non-Executive Independent Director for a 5-year term from May 27, 2026, to May 26, 2031. The move ensures leadership and management continuity for the company.
- Re-appointment of Manish Singhal as Managing Director for 3 years effective August 1, 2026 to July 31, 2029
- Re-appointment of Gauri Shanker Kandoi as Chairman cum Whole Time Director for 3 years (August 1, 2026 to July 31, 2029)
- Re-appointment of Prity Singhal as Whole Time Director for 3 years (August 1, 2026 to July 31, 2029)
- Appointment of Anjal Kejriwal as Non-Executive Independent Director for 5 years (May 27, 2026 to May 26, 2031)
KG Petrochem approved its standalone unaudited financial results for the quarter ended June 30, 2026, in a board meeting held on August 14, 2026. The company enters the new fiscal year with a TTM revenue of Rs 314 Cr and a modest PAT of Rs 4 Cr. With a market capitalization of only Rs 92 Cr, the company is currently trading at a P/E of 20.6. Investors are awaiting the detailed P&L to see if the company has improved its 6.0% operating margin from FY26.
- Board meeting conducted on August 14, 2026, between 02:00 PM and 02:50 PM
- Approval of standalone unaudited financial results for the quarter ended June 30, 2026
- Promoter holding remains high and stable at 74.66% as of the June 2026 quarter
- Company is managing a TTM revenue base of Rs 314 Cr against a market cap of Rs 92 Cr
KG Petrochem's board met on August 14, 2026, to approve the standalone unaudited financial results for the quarter ended June 30, 2026. The company, which has a market cap of Rs 97 Cr, is coming off a fiscal year (FY26) where revenue reached Rs 314 Cr but net profit dipped to Rs 4 Cr from Rs 6 Cr in the previous year. The meeting was relatively brief, lasting 50 minutes. Investors should focus on whether the operating profit margin (OPM), which stood at 5.8% TTM, shows signs of recovery in these new results.
- Board approved standalone unaudited financial results for the quarter ended June 30, 2026
- The board meeting was conducted within a 50-minute window (02:00 PM to 02:50 PM)
- Company reported a TTM revenue of Rs 314 Cr prior to this quarterly update
- Promoter holding remains high and stable at 74.66% as of June 2026
- The company is currently managing a debt of Rs 85 Cr against a net worth of Rs 186 Cr
KG Petrochem Ltd has rescheduled its Board Meeting from August 12, 2026, to August 14, 2026. The primary agenda is to consider and approve the unaudited standalone financial results for the quarter ended June 30, 2026. This is a minor administrative delay of two days. The trading window for insiders remains closed until 48 hours after the results are declared.
- Board meeting rescheduled from August 12, 2026, to August 14, 2026
- Agenda includes approval of unaudited standalone financial results for the quarter ended June 30, 2026
- Trading window closure, effective since June 30, 2026, will continue until 48 hours post-announcement
- The company reported a TTM revenue of Rs 314 Cr and a PAT of Rs 4 Cr as of the latest annual cycle
KG Petrochem Ltd has scheduled a board meeting on August 12, 2026, to consider and approve the unaudited standalone financial results for the quarter ended June 30, 2026. This follows a fiscal year (FY26) where the company reported a revenue of ₹314 crore and a PAT of ₹4 crore. The company is currently navigating a challenging period with a 12-month price return of -31.9%. Investors will be monitoring the results for improvements in the operating profit margin, which stood at 5.8% on a TTM basis.
- Board meeting to be held on August 12, 2026, at 2:00 P.M. IST.
- Agenda focuses on approving unaudited standalone financial results for the quarter ended June 30, 2026.
- Trading window remains closed until 48 hours after the results are declared, as per the June 30, 2026, intimation.
- Company reported a TTM revenue of ₹314 crore against a market capitalization of ₹92 crore.
- Latest quarterly EPS (March 2026) was ₹4.75 compared to ₹0.06 in the preceding December 2025 quarter.
KG Petrochem has scheduled its 46th Annual General Meeting for August 26, 2026, to adopt FY25-26 financials and approve management re-appointments. The company reported FY26 revenue of ₹313.65 crore and a PAT of ₹4.45 crore, noting headwinds from US textile tariffs. A significant proposal includes the re-appointment of MD Manish Singhal for three years with a salary cap of ₹20 lakh per month. This proposed salary cap, if fully utilized, would total ₹2.4 crore annually, representing approximately 54% of the company's FY26 net profit.
- 46th AGM scheduled for August 26, 2026, with e-voting starting August 23, 2026
- Reported FY26 Revenue from operations of ₹313.65 crore and PAT of ₹4.45 crore
- Proposed re-appointment of MD Manish Singhal for a 3-year term effective August 1, 2026
- MD salary cap set at ₹20,00,000 per month plus perquisites and retirement benefits
- Company maintains high export dependency with 76% of revenue from US and South American markets
KG Petrochem has scheduled its 46th Annual General Meeting (AGM) for August 26, 2026. Key resolutions include the re-appointment of Mr. Manish Singhal as Managing Director for a 3-year term with a proposed salary of up to Rs 20 lakh per month (Rs 2.4 Cr annually). This proposed remuneration is significant, representing approximately 60% of the company's TTM PAT of Rs 4 Cr. The meeting will also address the issuance of a corporate guarantee for M/s. Suave Casa Ideas Private Limited.
- 46th AGM scheduled for August 26, 2026, to adopt FY26 audited financial statements.
- Proposed re-appointment of MD Manish Singhal for a 3-year term from August 1, 2026, to July 31, 2029.
- MD salary cap set at Rs 20,00,000 per month, plus housing and other perquisites.
- Resolution proposed for the issuance of a corporate guarantee in favor of M/s. Suave Casa Ideas Private Limited.
- Appointment of Mr. Anjal Kejriwal as an Independent Non-Executive Director for shareholder approval.
KG Petrochem's board has approved the re-appointment of its core promoter-management team, including the Managing Director, Chairman, and Whole Time Director, for a three-year term starting August 1, 2026. The board also approved a related party transaction involving a ₹3.5 crore corporate guarantee for Suave Casa Ideas Private Limited, a promoter-led entity, in exchange for a 0.5% annual commission. This guarantee represents approximately 1.9% of the company's net worth (₹186 Cr). Shareholders will vote on these proposals at the 46th Annual General Meeting scheduled for August 26, 2026.
- Re-appointment of Mr. Manish Singhal (MD), Mrs. Prity Singhal (WTD), and Mr. Gauri Shanker Kandoi (Chairman) for 3 years from 2026 to 2029.
- Approval of a ₹3.5 Cr corporate guarantee in favor of HDFC Bank for a promoter-group company.
- Guarantee commission set at 0.5% p.a. for the related party transaction.
- Appointment of Mr. Anjal Kejriwal as an Independent Director for a 5-year term ending May 2031.
- 46th Annual General Meeting (AGM) scheduled for August 26, 2026, with a cut-off date of August 19, 2026.
KG Petrochem has approved the re-appointment of its core promoter management team, including the Chairman and Managing Director, for three-year terms starting August 1, 2026. The board also approved a ₹3.5 Cr corporate guarantee for Suave Casa Ideas Private Limited, a promoter-led entity, in exchange for a 0.5% annual commission. This guarantee represents approximately 1.88% of the company's net worth (₹186 Cr). Additionally, Mr. Anjal Kejriwal has been appointed as an Independent Director for a five-year term.
- Re-appointment of Mr. Manish Singhal (MD), Mrs. Prity Singhal (WTD), and Mr. Gauri Shanker Kandoi (Chairman) for 3-year terms.
- Issuance of a ₹3.5 Cr corporate guarantee to HDFC Bank on behalf of a promoter-group company.
- Company to earn a guarantee commission of 0.5% p.a. on the ₹3.5 Cr exposure.
- Appointment of Mr. Anjal Kejriwal as Independent Director for a term from May 2026 to May 2031.
- 46th Annual General Meeting (AGM) scheduled for August 26, 2026, to seek shareholder approval for these items.
KG Petrochem's board has approved a corporate guarantee of Rs 3.5 Cr in favor of HDFC Bank for Suave Casa Ideas Private Limited, a related party, at a 0.5% p.a. commission. The board also proposed the re-appointment of the Managing Director, Chairman, and a Whole Time Director for three-year terms starting August 1, 2026. These proposals, along with the appointment of a new Independent Director, will be put to shareholder vote at the 46th Annual General Meeting (AGM) on August 26, 2026. The corporate guarantee represents approximately 1.9% of the company's net worth.
- Approved a Rs 3.5 Cr corporate guarantee for Suave Casa Ideas Private Limited, a promoter-led entity.
- Company to earn a 0.5% p.a. guarantee commission on the Rs 3.5 Cr facility.
- Proposed 3-year re-appointments for MD Manish Singhal, Chairman G.S. Kandoi, and WTD Prity Singhal.
- Appointed Anjal Kejriwal as an Independent Director for a 5-year term starting May 27, 2026.
- 46th AGM scheduled for August 26, 2026, with a voting cut-off date of August 19, 2026.
Financial Performance
Revenue Growth by Segment
Total Operating Income (TOI) grew 13% YoY to INR 378.16 Cr in FY25 from INR 334.35 Cr in FY24. The Terry Towel and Made-ups segment remains the primary driver, contributing over 75% of TOI. The Artificial Leather segment saw marginal growth of 0.9%, reaching INR 45.02 Cr compared to INR 44.61 Cr in FY24.
Geographic Revenue Split
Exports accounted for 76% of TOI in FY24, an increase from 69% in FY23. The revenue is heavily concentrated in the USA market, with secondary contributions from Chile and South America.
Profitability Margins
Operating margins improved to 7.43% in FY25 from 6.48% in FY24, driven by better sales realizations and a recovery in export demand. However, margins remain significantly lower than the 12.04% achieved in FY22. ROCE stood at 6.18% in FY25, up slightly from 5.56% in FY24.
EBITDA Margin
PBILDT margin recovered to 7.43% in FY25. Core profitability is sensitive to raw material price corrections; a decline in PBILDT margin below 7% on a sustained basis is identified as a negative rating sensitivity factor.
Capital Expenditure
The company has planned a total capex of INR 8 Cr. This includes INR 5.65 Cr for acquiring a building to increase storage space for raw materials and finished goods, and INR 2.34 Cr for importing printing machinery to optimize production. INR 6 Cr is funded via term loans.
Credit Rating & Borrowing
The company maintains a CARE BBB-; Stable (Long Term) and CARE A3 (Short Term) rating as of July 2025. Borrowing costs are impacted by high working capital utilization, which averaged 74.87% to 80% over the 12 months ending April 2025.
Operational Drivers
Raw Materials
Raw cotton is the primary raw material, representing a significant portion of the cost structure. Other materials include polymers for the agency division and chemicals for artificial leather production.
Import Sources
Cotton is primarily sourced domestically within India, subject to monsoon conditions. Printing machinery is imported from international markets to enhance manufacturing efficiency.
Key Suppliers
The company acts as a consignment stockist for GAIL (India) Limited for its polymer distribution business in the Rajasthan region.
Capacity Expansion
Current expansion focuses on storage and processing rather than raw volume; the INR 8 Cr investment targets a new storage building and advanced printing machinery to improve throughput and product quality.
Raw Material Costs
Cotton prices are highly volatile, influenced by yield, monsoon vagaries, and government export quotas. Profitability is directly linked to these fluctuations, though the company employs forward booking and inventory management to mitigate risks.
Manufacturing Efficiency
Efficiency is being targeted through the import of specialized printing machinery (INR 2.34 Cr) and comprehensive staff training aimed at reducing waste and increasing productivity.
Logistics & Distribution
Distribution is characterized by a 60-100 day credit period offered to customers. The company faces geographical concentration, with the majority of logistics geared toward US-based retail chains.
Strategic Growth
Expected Growth Rate
13%
Growth Strategy
Growth is targeted through the ramp-up of the artificial leather business, expansion into new international markets beyond the USA and Chile, and enhancing production capabilities via an INR 8 Cr capex plan for printing and storage.
Products & Services
Terry towels, made-ups (linens), artificial leather (technical textiles), and polymer distribution services.
Brand Portfolio
The company operates primarily as a manufacturer for global brands and retailers; specific owned brand names were not disclosed, but they serve major labels like Walmart Inc. and Jay Franco & Sons.
New Products/Services
The company is focusing on the 'Technical Textiles' segment through the manufacturing of artificial leather, aiming to diversify revenue away from traditional terry towels.
Market Expansion
Targeting expansion into new international regions to reduce the current 76% dependency on the US and South American markets.
Market Share & Ranking
Not disclosed in available documents, but identified as an established player with over two decades of operations in the terry towel segment.
Strategic Alliances
Maintains a long-term agency agreement with GAIL (India) Limited for polymer marketing and distribution in Rajasthan.
External Factors
Industry Trends
The textile industry is currently benefiting from increasing urbanization and fashion trends, but remains cyclical. The industry is shifting toward technical textiles, where the company is positioning itself via its artificial leather division.
Competitive Landscape
Faces intense competition from both domestic Indian textile firms and international manufacturers in low-cost countries, putting pressure on operating margins.
Competitive Moat
The moat is built on the 50+ years of experience of promoter Mr. G.S. Kandoi and established relationships with global retail giants. This ensures repeat business but is challenged by high customer concentration.
Macro Economic Sensitivity
Highly sensitive to global economic cycles, particularly US consumer spending, and Indian monsoon patterns which dictate cotton availability and pricing.
Consumer Behavior
Demand is driven by changing lifestyles and growing fashion trends in the home textile segment, particularly in developed economies.
Geopolitical Risks
Vulnerable to changes in Indian government policies regarding cotton export quotas and political instability in major export markets like the USA.
Regulatory & Governance
Industry Regulations
Operations are governed by textile manufacturing standards, pollution control board norms for dyeing units, and SEBI/BSE listing regulations for corporate governance.
Environmental Compliance
The company monitors environmental and legal compliances through internal and external audits, though specific ESG costs in INR were not disclosed.
Taxation Policy Impact
Subject to Indian corporate tax laws and export incentives; changes in GST or export duty drawbacks would directly impact the 76% export revenue base.
Legal Contingencies
The company has extended significant corporate guarantees: INR 24 Cr to HEX Exports Private Limited and INR 20 Cr to Suave Casa Ideas Private Limited, representing substantial contingent liabilities.
Risk Analysis
Key Uncertainties
The primary uncertainty is the slow ramp-up of the artificial leather business and the delayed recovery of payments from one major customer, which could impact liquidity.
Geographic Concentration Risk
High geographic risk with the majority of export revenue (76% of total) originating from the USA and Chile.
Third Party Dependencies
Significant dependency on top 10 customers (68% of revenue) and GAIL (India) Limited for the agency division's supply.
Technology Obsolescence Risk
The company is mitigating technology risks by importing modern printing machinery to stay competitive with global textile manufacturing standards.
Credit & Counterparty Risk
Counterparty risk is moderated by dealing with reputed players like Walmart, though an elongated collection period (60-100 days) and specific delayed recoveries remain concerns.
