KIRIINDUS - Kiri Industries
📢 Recent Corporate Announcements
Kiri Industries has appointed Mr. Nanubhai Kathiria as an Independent Director on the board of its material unlisted subsidiary, Indo Asia Copper Limited (IACL). The appointment is for a five-year term effective March 02, 2026, and is intended to comply with SEBI Regulation 24(1) regarding governance of material subsidiaries. Mr. Kathiria is a seasoned professional with over 38 years of experience in corporate law, mergers, and secretarial audits. This move ensures the listed entity maintains oversight and regulatory compliance within its significant subsidiary operations.
- Appointment of Mr. Nanubhai Kathiria as Non-Executive Independent Director for a 5-year term.
- The appointee brings over 38 years of experience in Company Law, M&A, and Project Management.
- Compliance with SEBI Regulation 24(1) requiring an independent director on material unlisted subsidiary boards.
- Indo Asia Copper Limited (IACL) is identified as a Material Unlisted Subsidiary of Kiri Industries.
Kiri Industries has successfully concluded its 11-year legal battle, receiving a net settlement of approximately ₹5,854 crores (USD 689 million) on December 31, 2025. The board has decided to reinvest these proceeds into a massive greenfield copper and fertilizer project instead of issuing dividends, with a planned CAPEX of ₹12,000-13,000 crores over the next two years. Phase 1 of the copper project is slated for April 2027, targeting an annual revenue of ₹20,000-25,000 crores and an eventual EBITDA of ₹4,500-5,000 crores. While the core dyes business remains subdued with Q3 revenue at ₹162 crores, the massive cash infusion and pivot to copper represent a significant structural shift for the company.
- Received ₹5,854 crores (USD 689.03 million) on Dec 31, 2025, ending the 11-year DyStar legal dispute.
- Planned CAPEX of ₹12,000-13,000 crores for copper and fertilizer projects over FY27 and FY28.
- Phase 1 copper operations targeted for April 2027 with expected revenue of ₹20,000-25,000 crores.
- Projected EBITDA from the new project to reach ₹4,500-5,000 crores within 3-4 years of full operation.
- Q3 FY26 Standalone Revenue stood at ₹162 crores, up 3% YoY, while consolidated EBITDA was ₹53 crores.
Kiri Industries Limited has released the audio recording of its earnings conference call held on February 11, 2026. The call focused on the company's financial performance for the third quarter and the nine-month period of FY26. This disclosure follows SEBI's Regulation 30 requirements, providing transparency into management's discussion with institutional investors and the general public. Investors can use this resource to evaluate management's perspective on current market conditions and future strategic initiatives.
- Earnings call conducted on February 11, 2026, to discuss Q3 and 9M-FY26 results.
- Audio recording link made available on the company's official website for public access.
- Compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements).
- The session included discussions with both institutional investors and the general public regarding business performance.
Kiri Industries reported a massive consolidated PAT of INR 50,117 Mn for Q3FY26, primarily driven by a one-time exceptional gain of INR 58,544 Mn from the disposal of its 37.57% stake in DyStar. Despite this windfall, core operations remain under pressure with a consolidated EBITDA loss of INR 486 Mn due to weak global demand and pricing in the dyes segment. The company is now pivoting towards a massive INR 13,300 Cr integrated copper and fertilizer project in Gujarat, aiming for a 25% IRR. While the cash inflow significantly strengthens the balance sheet, the operational turnaround of the core business remains a challenge.
- Recorded a massive exceptional gain of INR 58,544 Mn from the monetization of its 37.57% stake in foreign associate DyStar.
- Consolidated revenue for Q3FY26 stood at INR 1,736 Mn, reflecting a 2.8% YoY decline amid subdued global industry conditions.
- Reported a consolidated EBITDA loss of INR 486 Mn for the quarter, compared to a loss of INR 444 Mn in the previous year.
- Announced a major diversification into Copper (INR 8,100 Cr) and Fertilizers (INR 3,600 Cr) via subsidiary Indo Asia Copper Ltd.
- The new project in Amreli, Gujarat, has a 36-month completion timeline starting October 2025 and has already secured environmental clearance.
Kiri Industries Limited has announced the resignation of Mr. Raja Mohaniya from his position as President - Operations, effective February 09, 2026. Mr. Mohaniya was classified as Senior Management Personnel (SMP) under SEBI regulations. The resignation was cited for personal reasons and has been accepted by the company management. This change in operational leadership is immediate, with the executive being relieved of duties on the same day.
- Mr. Raja Mohaniya resigned as President - Operations effective February 09, 2026.
- The executive was classified as Senior Management Personnel under SEBI Regulation 16(1)(d).
- Resignation was attributed to personal reasons with no other material concerns cited.
- The company accepted the resignation and relieved him of duties at the close of business hours on Feb 9.
Kiri Industries has announced the re-appointment of its core leadership team to ensure management continuity. Mr. Manish Kiri has been re-appointed as Chairman & Managing Director for a three-year term starting April 2026. Additionally, Mr. Girish Tandel and Mr. Yagnesh Mankad have been re-appointed as Whole Time Directors for three-year terms effective February 2026. These leaders bring substantial experience, with Mr. Tandel and Mr. Mankad possessing 35 and 45 years of industry expertise respectively, which is vital for the company's ongoing expansion and operational strategies.
- Mr. Manish Kiri re-appointed as Chairman & Managing Director for a 3-year term starting April 1, 2026.
- Mr. Girish Tandel and Mr. Yagnesh Mankad re-appointed as Whole Time Directors for 3 years starting February 11, 2026.
- Leadership team brings extensive experience, including 35+ years for Mr. Tandel and 45+ years for Mr. Mankad.
- Management credited with the successful closure of the 15-year DyStar legal battle, yielding multifold returns.
Kiri Industries has successfully concluded the long-standing DyStar dispute, receiving a total consideration of US$ 689.03 million (approx. ₹5,700+ crore). This amount includes the purchase consideration for its 37.57% stake, share buy-back proceeds, interest, and legal costs awarded by the Singapore International Commercial Court. Consequently, DyStar has ceased to be an associate company as of December 31, 2025. While the company reported quarterly losses in certain foreign subsidiaries, the massive cash inflow fundamentally transforms the company's balance sheet.
- Received total consideration of US$ 689,034,072.68 for the en bloc sale of 37.57% stake in DyStar
- DyStar Global Holdings (Singapore) Pte. Ltd. ceased to be an Associate Company effective December 31, 2025
- Two foreign subsidiaries reported a combined net loss of ₹70.82 crore for the quarter ended December 31, 2025
- One step-down subsidiary recorded a net profit of ₹84.90 lakhs on revenue of ₹3.26 crore for the quarter
- The board approved unaudited standalone and consolidated financial results for Q3 and nine months ended FY26
Kiri Industries has officially received the full settlement amount of US$ 689.03 million for its 37.57% stake in DyStar, following a long-standing legal battle. This massive cash inflow includes the purchase price, interest, and legal costs awarded by the Singapore International Commercial Court. Consequently, DyStar has ceased to be an associate company as of December 31, 2025. While the settlement is a major balance sheet booster, some foreign subsidiaries reported a combined net loss of Rs. 7,082.25 lakhs for the quarter.
- Received total consideration of US$ 689,034,072.68 for the en bloc sale of its 37.57% stake in DyStar
- DyStar ceased to be an Associate Company of Kiri Industries effective December 31, 2025
- Settlement includes purchase consideration, share buy-back proceeds, interest, and awarded legal costs
- Two foreign subsidiaries reported a combined net loss of Rs. 7,082.25 lakhs for the quarter ended December 31, 2025
- One step-down subsidiary reported a net profit of Rs. 84.90 lakhs on revenue of Rs. 326.02 lakhs for the quarter
Kiri Industries Limited has scheduled its earnings conference call for Wednesday, February 11, 2026, at 10:30 AM IST. The call will focus on the financial performance for the third quarter and nine months ended December 31, 2025. Senior management, including CMD Manish Kiri and the CEO of Indo Asia Copper Limited, will be present to discuss operational highlights. This is a routine regulatory filing following the conclusion of the December quarter.
- Earnings call scheduled for February 11, 2026, at 10:30 AM IST via virtual platform.
- Discussion to cover financial results for the quarter and nine months ended December 31, 2025.
- Management representation includes CMD Manish Kiri and CEO of Indo Asia Copper, Ranjit Singh Chugh.
- Universal dial-in numbers provided are +91 22 6280 1341 and +91 22 7115 8242.
Kiri Industries has issued a Letter of Intent for a new hybrid power project in Rajkot, Gujarat, with an estimated investment of ₹10,079.50 Lakh (approx. ₹100.8 crore). The project features a combined capacity of 9.45 MW Wind and 8 MW Solar power intended for captive consumption. This initiative aims to optimize energy costs for the company's manufacturing facilities while improving its ESG profile. The project is expected to be commissioned within a 10-month timeline.
- Total estimated project cost of ₹10,079.50 Lakh excluding land and taxes
- Hybrid installation includes 9.45 MW Wind and 8 MW Solar capacity
- Project commissioning targeted within 10 months from January 2026
- Captive power usage designed to reduce operational energy costs and carbon footprint
Kiri Industries has issued a Letter of Intent for a hybrid power project in Rajkot, Gujarat, with an estimated investment of ₹100.8 crore. The project features a combined capacity of 9.45 MW wind and 8 MW solar power to be used for captive consumption at its manufacturing facilities. Expected to be commissioned within 10 months, the project aims to significantly optimize energy costs and improve the company's ESG profile. This move reflects a strategic shift towards sustainable energy and long-term operational efficiency.
- Total estimated project cost of approximately ₹100.8 crore excluding land and taxes
- Hybrid capacity consists of 9.45 MW Wind and 8 MW Solar power
- Project commissioning expected within 10 months from the LOI issuance date
- Power generated will be used primarily for captive consumption to reduce manufacturing energy costs
- Partnership for the project involves IB Vogt Solar India and Four-Square Green Energy
Kiri Industries Limited has submitted its quarterly compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018. The certificate, issued by Cameo Corporate Services Limited, confirms that all share dematerialization requests for the quarter ended December 31, 2025, were processed within stipulated timelines. It verifies that physical certificates were mutilated and cancelled, and the names of depositories were updated in the register of members. This is a standard procedural filing required for all listed entities in India.
- Compliance certificate submitted for the quarter ended December 31, 2025
- Issued by Registrar and Transfer Agent, M/s. Cameo Corporate Services Limited
- Confirms dematerialization requests were processed and listed on stock exchanges
- Physical certificates were mutilated and cancelled as per SEBI guidelines
Kiri Industries has approved a significant investment of up to USD 168 million (approximately ₹1500 crore) in its Singapore-based wholly-owned subsidiary, Claronex Holdings Pte. Ltd. The primary objective of this capital infusion is to repay a USD 130 million credit facility, making the subsidiary debt-free. Additionally, the funds will support the commencement of Claronex's business operations in wholesale trading and financing. This move is expected to be completed within six months and will not change the ownership structure.
- Investment of up to USD 168 million (approx. ₹1500 Crore) in Claronex Holdings Pte. Ltd.
- USD 130 million earmarked for full repayment of the subsidiary's credit facility to make it debt-free.
- The subsidiary, incorporated in Feb 2024, will now commence active trading and financing operations.
- Investment to be completed within six months via cash for equity shares at SGD 7.00 per share.
Kiri Industries has received the full consideration of US$689.03 million for its 37.57% stake in DyStar Global Holdings, marking the end of a legal battle that began in 2015. The proceeds include the purchase price, share buyback amounts, interest, and legal costs awarded by the Singapore International Commercial Court. Following this transaction, DyStar is no longer an associate company of Kiri Industries. This massive cash inflow is expected to significantly strengthen the company's balance sheet and reduce future legal expenditures.
- Received total consideration of US$689.03 million for the 37.57% stake in DyStar
- Concludes a decade-long legal battle regarding minority oppression initiated in 2015
- DyStar ceases to be an associate company of Kiri Industries Limited
- Funds to be used for strengthening the balance sheet and future growth opportunities
- Expected material reduction in ongoing legal expenses moving forward
Kiri Industries has successfully completed the divestment of its entire 37.57% equity stake in DyStar Global Holdings (Singapore) Pte. Ltd. The company has received the full consideration amounting to US$ 689,034,072.68 from the purchaser, Zhejiang Longsheng Group. Following this payment, the Share Purchase Agreement and Share Buy-Back Agreement have been discharged by performance, and DyStar has ceased to be an associate company of Kiri Industries.
- Received total consideration of US$ 689,034,072.68 for the 37.57% stake in DyStar
- Divestment completed following orders from the Singapore International Commercial Court (SICC)
- Share Purchase Agreement (SPA) and Share Buy-Back Agreement are now fully discharged by performance
- DyStar Global Holdings has officially ceased to be an associate company of Kiri Industries
Financial Performance
Revenue Growth by Segment
Standalone revenue from operations for Q2 FY26 reached INR 195 Cr, a growth of 34% YoY and 8% sequentially. For H1 FY26, standalone revenue was INR 375 Cr, up 20% YoY. Consolidated revenue for Q2 FY26 stood at INR 213 Cr, reflecting a 23% YoY increase and 6% sequential growth, driven by strong sales momentum in the Dyes and Dye Intermediates segments.
Geographic Revenue Split
The company maintains a global footprint with subsidiaries in Dubai (Chemhub Trading DMCC), Singapore (Claronex Holdings), and the Cayman Islands. While specific regional percentages are not fully disclosed, two wholly-owned foreign subsidiaries contributed INR 101.59 Cr in revenue for FY25, representing approximately 13.7% of consolidated FY25 revenue.
Profitability Margins
Profitability is currently under significant pressure. In Q2 FY26, the company reported a standalone net loss of INR 21 Cr and a consolidated net loss of INR 80 Cr. This is primarily due to elevated legal expenses related to the DyStar litigation and higher operating costs. Consolidated net loss for FY25 was INR 110.69 Cr, compared to a loss of INR 91.18 Cr in FY24, a 21.4% increase in losses.
EBITDA Margin
Standalone EBITDA for H1 FY26 was INR 7 Cr, yielding a margin of approximately 1.87%. However, Q2 FY26 saw a standalone EBITDA loss of INR 10 Cr and a consolidated EBITDA loss of INR 13 Cr. Profitability was adversely impacted by non-operational legal costs and elevated input costs during the quarter.
Capital Expenditure
In FY25, the company undertook significant capital expenditure of INR 406.97 Cr for the purchase of Property, Plant, and Equipment (PPE), including Capital Work-in-Progress. This represents a massive increase from the INR 7.83 Cr spent in FY24, indicating a major phase of capacity building or asset acquisition.
Credit Rating & Borrowing
The company raised INR 492.02 Cr through a preferential issue of convertible warrants, monitored by CRISIL. Consolidated finance costs surged to INR 61 Cr in Q2 FY26, significantly impacting the bottom line. Total consolidated assets as of March 31, 2025, stood at INR 4,725.22 Cr.
Operational Drivers
Raw Materials
Specific raw material names like H-Acid, Vinyl Sulphone, and other chemical intermediates are used in the production of Dyes and Dye Intermediates. Input costs are described as 'elevated' in recent quarters, though specific percentage breakdowns per material are not disclosed.
Import Sources
The company sources materials both domestically and internationally, with operations and subsidiaries in India, Dubai, and Singapore suggesting a diversified procurement strategy across Asia and the Middle East.
Capacity Expansion
The company reported improved capacity utilization across key product categories in Q2 FY26. A major investment of INR 406.97 Cr in PPE during FY25 suggests a significant expansion of the manufacturing base, though specific MTPA figures were not provided.
Raw Material Costs
Input costs were cited as a primary reason for the consolidated EBITDA loss of INR 13 Cr in Q2 FY26. The company is managing these through improved capacity utilization to achieve better economies of scale.
Manufacturing Efficiency
The company achieved improved capacity utilization in Q2 FY26, which helped mitigate some impact of external volatility and higher operating costs.
Strategic Growth
Expected Growth Rate
20-34%
Growth Strategy
Growth is targeted through the resolution of the DyStar litigation, which is expected to unlock significant value. The company has a Share Purchase Agreement (SPA) to sell its 37.57% stake in DyStar for a base consideration of USD 676.26 million (approx. INR 5,600 Cr). Additionally, Kiri has placed a bid of USD 1.1 billion to acquire DyStar entirely, with funds already arranged as of November 1, 2025.
Products & Services
The company manufactures and exports a wide range of Dyes and Dye Intermediates used primarily in the textile and pigment industries.
Brand Portfolio
Kiri Industries Limited (KIL), Lonsen Kiri Chemical Industries Limited (JV).
New Products/Services
The company is expanding into copper through Indo Asia Copper Limited and renewable energy via Kiri Renewable Energy Private Limited, though specific revenue contributions are not yet quantified.
Market Expansion
The company is targeting global markets through its Dubai and Singapore subsidiaries, focusing on expanding its export footprint for Dyes and Intermediates.
Strategic Alliances
Key alliances include a 40% stake in the Lonsen Kiri Chemical Industries Limited joint venture and a 37.57% stake in DyStar Global Holdings (Singapore) Pte. Ltd.
External Factors
Industry Trends
The Dyes and Pigments industry is currently facing 'external volatility' and 'elevated input costs.' Kiri is positioning itself to move beyond litigation toward becoming a larger global player through the potential full acquisition of DyStar.
Competitive Landscape
Key competitors include Zhejiang Longsheng Group, which is also the purchaser/bidder in the DyStar litigation.
Competitive Moat
Kiri's moat is built on its integrated manufacturing of Dyes and Intermediates and its strategic 40% stake in the Lonsen Kiri JV, which provides a stable profit stream. The potential resolution of the DyStar case is the primary catalyst for sustaining this advantage.
Macro Economic Sensitivity
The business is sensitive to global textile demand and chemical industry cycles. High finance costs (INR 61 Cr in Q2 FY26) indicate high sensitivity to interest rate environments and debt levels.
Consumer Behavior
Demand is driven by the textile industry's shift toward sustainable and high-quality dyes.
Geopolitical Risks
Operations in Dubai and Singapore, and litigation in Singapore courts, expose the company to international regulatory and geopolitical shifts.
Regulatory & Governance
Industry Regulations
Operations are governed by the Companies Act 2013 and Indian Accounting Standards (Ind AS). The company must comply with environmental regulations for chemical manufacturing and international trade laws for its export business.
Environmental Compliance
The company operates in the chemical sector, which is subject to stringent pollution norms, though specific ESG spend was not disclosed.
Taxation Policy Impact
The company paid INR 0.21 Cr in taxes in FY25. The effective tax rate is low due to ongoing losses.
Legal Contingencies
The company is embroiled in the DyStar litigation in the Singapore International Commercial Court. The valuation of Kiri's stake is USD 676.26 million (approx. INR 5,600 Cr). Legal expenses are significant enough to impact quarterly profitability by over INR 20-30 Cr.
Risk Analysis
Key Uncertainties
The primary uncertainty is the final outcome of the DyStar litigation and the successful arrangement/deployment of USD 1.1 billion for the potential acquisition. Failure to resolve this could lead to continued high legal costs and liquidity strain.
Geographic Concentration Risk
While India is the primary manufacturing hub, a significant portion of assets (INR 1,093.68 Cr) and revenue are tied to foreign subsidiaries, particularly in Dubai and Singapore.
Third Party Dependencies
The company has a high dependency on the court-appointed receiver and the Singapore legal system for the resolution of its largest asset (DyStar).
Technology Obsolescence Risk
The company is investing in renewable energy (Kiri Renewable Energy) to mitigate technology risks and transition toward greener manufacturing processes.
Credit & Counterparty Risk
The company recorded an impairment loss under Expected Credit Loss (ECL) of INR 16.82 Lakhs in FY25, indicating relatively stable but monitored receivables quality.