KRBL Ltd, the major basmati rice producer under the India Gate brand, reported modest growth in its fourth quarter results. According to reports from CNBC TV18, the company achieved a 0.8% year-on-year rise in consolidated net profit to ₹155.4 crore for Q4, compared to ₹154.2 crore in Q4FY25. Revenue demonstrated stronger performance with an increase of 5.8% to ₹1,525.5 crore from ₹1,442.3 crore in the corresponding quarter of the previous year, supported by steady demand and improved sales performance.
The company's profitability metrics showed mixed results during the quarter. As reported by CNBC TV18, EBITDA rose 2.4% to ₹229.2 crore from ₹223.7 crore year-on-year, indicating operational efficiency improvements. However, EBITDA margin compressed to 15% from 16% in the year-ago period, reflecting pressure on profitability despite revenue growth. This margin compression suggests the company faced cost pressures or competitive challenges during the quarter, though the absolute EBITDA growth of ₹5.5 crore demonstrates resilience in operational performance.
The board of directors recommended a final dividend of ₹4.50 per equity share for the financial year ended March 31, 2026, according to CNBC TV18. The dividend, equivalent to 450%, will be paid within 30 days from the conclusion of the ensuing annual general meeting, subject to shareholder approval. This dividend declaration demonstrates the company's commitment to returning value to shareholders despite the modest profit growth, supported by stable earnings growth and continued revenue expansion during the financial year.
Despite the positive financial results, KRBL Ltd shares experienced a decline in the market. As reported by CNBC TV18, shares ended at ₹347, down by ₹23.55, or 6.36% on the BSE on May 14, the day of the results announcement. The market reaction suggests investor concerns may have outweighed the positive financial performance, potentially reflecting expectations for stronger growth or margin expansion in future quarters, despite the company's steady revenue and profitability growth during Q4 FY26.
