Kesoram Industries reports significant Q2 & H1 FY26 losses due to impairment charges
Kesoram Industries reported significant standalone and consolidated losses for Q2 and H1 FY26, primarily due to substantial impairment charges on subsidiary investments and assets, impacting overall profitability.
The impact is high due to the substantial net losses reported, particularly the large exceptional impairment charges totaling ₹242.15 crore for the half-year in standalone results, and ₹89.81 crore in consolidated results for the half-year, which directly and significantly affect the company's financial health and investor perception.
The company reported significant standalone and consolidated net losses for the quarter and half-year ended September 30, 2025. These losses were substantially driven by large exceptional items, including impairment provisions of ₹108.10 crore in standalone results for investment and loans to its subsidiary, Cygnet Industries Limited. The waiver of interest on subsidiary loans also indicates underlying financial stress.
Kesoram Industries Limited announced the outcome of its Board Meeting held on October 17, 2025, where the Unaudited Financial Results (Standalone and Consolidated) for the quarter and half year ended September 30, 2025, were approved. * Standalone Financial Highlights (Quarter ended September 30, 2025): * Total Income: ₹2.33 crore * Loss before exceptional items and tax: (₹3.76) crore * Exceptional items: (₹108.10) crore, primarily due to impairment provision for investment and loan in its wholly-owned subsidiary, Cygnet Industries Limited. * Net loss for the period: (₹111.89) crore * Basic and Diluted EPS: (₹3.60) * Standalone Financial Highlights (Half year ended September 30, 2025): * Total Income: ₹13.64 crore * Profit before exceptional items and tax: ₹2.88 crore * Exceptional items: (₹242.15) crore, including the current quarter's impairment and a previous quarter's impairment and waiver of accumulated interest on subsidiary loans. * Net loss for the period: (₹239.18) crore * Basic and Diluted EPS: (₹7.70) * Consolidated Financial Highlights (Quarter ended September 30, 2025): * Revenue from operations: ₹55.17 crore * Total Income: ₹59.20 crore * Loss before exceptional items and tax: (₹25.87) crore * Net loss for the period: (₹25.87) crore * Basic and Diluted EPS: (₹0.83) * Consolidated Financial Highlights (Half year ended September 30, 2025): * Revenue from operations: ₹116.22 crore * Total Income: ₹132.56 crore * Loss before exceptional items and tax: (₹35.49) crore * Exceptional items: (₹89.81) crore, primarily from impairment assessment by Cygnet Industries Limited in the previous quarter. * Net loss for the period: (₹125.21) crore * Basic and Diluted EPS: (₹4.03) * The company has also waived the interest for the current financial year on loans given to its subsidiary. The statutory auditors have issued an unmodified opinion on these unaudited standalone and consolidated financial results.
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