KG Petrochem's standalone net profit declined sharply by 77.31% to ₹49.37 lakh in the quarter ended June 2026, compared to ₹216.19 lakh recorded in the corresponding quarter of the previous year, according to the company's unaudited financial results approved by the Board of Directors on August 14, 2026. This represents a significant deterioration in the company's bottom-line performance during the first quarter of fiscal 2026-27, with the company reporting earnings per share of ₹0.95 compared to ₹4.14 in the year-ago period.
The company's sales revenue declined by 38.59% to ₹5,775.24 lakh in Q1 FY27, down from ₹9,404.03 lakh in the same quarter of the previous financial year, as reported in the latest financial results. Revenue from operations also contracted significantly quarter-on-quarter, falling from ₹8,111.48 lakh in Q4FY26 to ₹5,775.24 lakh in Q1FY27. Other income dropped to ₹61.90 lakh from ₹163.97 lakh in the previous year's same quarter, while total expenses stood at ₹5,780.58 lakh, narrowly missing total income of ₹5,837.14 lakh, resulting in a pre-tax profit of ₹56.56 lakh.
The company operates primarily through two segments: Textile and Technical Textile, showing contrasting performance trends. While the traditional Textile segment saw its revenue drop to ₹4,074.69 lakh from ₹8,367.24 lakh, the Technical Textile segment grew its revenue to ₹1,696.29 lakh from ₹1,025.69 lakh, marking a 65% increase. More notably, the Technical Textile segment's contribution to pre-tax, pre-interest segment results surged to ₹175.48 lakh from just ₹28.26 lakh in the prior year, while the Textile segment's result declined to ₹7.01 lakh from ₹498.52 lakh. This divergence highlights a structural shift in value creation, with the higher-margin technical textile operations becoming a critical stabilizer for the group's earnings profile.
Trade receivables fell sharply to ₹5,079.40 lakh from ₹9,224.73 lakh at the end of FY26, significantly improving working capital efficiency and helping offset the rise in inventories, which increased to ₹8,029.33 lakh from ₹6,742.08 lakh. Current borrowings declined to ₹5,723.21 lakh from ₹8,380.52 lakh, indicating debt reduction efforts. Finance costs decreased to ₹122.32 lakh from ₹229.51 lakh year-ago, while employee benefit expenses fell to ₹780.98 lakh from ₹1,023.25 lakh. As of June 30, 2026, total assets stood at ₹30,616.12 lakh, down from ₹33,387.18 lakh at the end of FY26, with total equity remaining stable at ₹18,686.12 lakh.
