Kamdhenu Q4 FY26 earnings call

Kamdhenu reported a strong FY26, with Profit Before Tax (PBT) growing 31% year-on-year to INR106 crores, compared to INR80 crores in FY25. Total sales volume for FY26 increased by 10% year-on-year, reaching 39 lakh metric tons. For Q4 FY26, total revenue stood at INR208 crores, a 5% increase from INR198 crores in Q4 FY25, with PBT at INR24 crores, up 8% year-on-year. The company maintained a PBT margin of 13.8% for FY26 and 11.7% for Q4 FY26.

The franchisee-based asset-light operating model continues to be a key strength, with royalty income through franchisees growing 25% year-on-year to INR175 crores in FY26, up from INR139 crores in FY25. This growth outpaced the 10% volume growth, primarily due to an increase in the royalty rate per ton, which rose to INR435 per metric ton in FY26 from INR398 in FY25. The company intends to further scale this model, which distributes input cost risk across its partner network.

The Indian steel industry is viewed as having attractive long-term growth opportunities, with India witnessing high single-digit growth in steel consumption during FY26. This demand is supported by healthy underlying demand across real estate, infrastructure, and industrial segments. Management expects this demand trajectory to sustain and potentially accelerate, driven by government investments like the INR12.2 lakh crores capital investment outlay in the Union Budget and policy initiatives such as the National Steel Policy and Make in India.

Kamdhenu's strategic priorities include strengthening its brand through sustained marketing investments, quality reinforcement, and consumer engagement. The company believes brand equity is its most valuable asset, especially as consumers shift towards organized and branded steel. This conviction was reinforced by being awarded 'The Extraordinaire - Brand: Most Trusted Brand - Infrastructure & Building Materials' at the India 2030 Leadership Conclave 2026.

The company proudly announced that it remains debt-free as of March 31, 2026. With ROCE at 26.8% and ROE at 19.8%, the Board has decided to announce a dividend of INR0.40 per share for FY26, representing 40% of the face value of INR1. Management is currently framing a policy for its treasury to determine how to best utilize its cash reserves and reward shareholders.

Kamdhenu's presence is spread across India, with North (31%), East (35%), West (19%), and South (15%) contributing to its overall volume. The company plans to increase its market share in the South by adding more franchisees in that region, while focusing on increasing the capacity of existing units in other regions rather than adding many new units. The current franchisee capacity is around 5 million metric tons, against 3.9 million metric tons sold in FY26, with updated data expected in Q1 FY27.