Kiri Industries Limited — Q3 FY26 earnings call

Call held 11 Feb 2026

Management summary

Kiri Industries reported a transformative Q3 FY26, marked by the resolution of the DyStar legal battle, yielding an exceptional gain of INR 5,854 crores. This capital is being strategically deployed into ambitious greenfield copper and fertilizer projects, with the first phase of copper operations expected by April 2027. While the core dyes business faced sequential revenue decline due to market headwinds, the company is focused on long-term value creation through its new ventures, projecting significant CAPEX over the next two fiscal years.

Highlights

  • The DyStar legal battle concluded with a net exceptional gain of INR 5,854 crores, significantly strengthening the company's financial foundation.

  • Standalone revenue from operations for Q3 FY26 grew 3% YoY to INR 162 crores, and 9M FY26 revenue grew 14% YoY to INR 537 crores.

  • The first phase of the greenfield copper project is on track to begin operations by April 2027, targeting INR 20,000-25,000 crore in revenue from copper alone.

  • All necessary approvals and land acquisition for the copper and fertilizer projects are substantially complete, with construction underway and major equipment orders placed.

  • The company is actively discussing a potential 20-40% stake in Makilala Mining Corporation, which has a production capacity of 1,20,000 tonnes of copper.

Concerns

  • Q3 FY26 consolidated revenue declined sequentially to INR 174 crores due to lower volumes and subdued demand in global markets for dyes and intermediates.

  • The board has decided to prioritize investment in strategic projects over dividends/buybacks, which may disappoint some shareholders.

  • The dyes and intermediates business continues to face challenges from subdued global demand and competitive pricing pressures.

Key financials

2 periods

Headline

  • Consolidated Revenue
    ₹174 Cr
  • Consolidated EBITDA
    ₹53 Cr
  • Exceptional Gain (DyStar)
    ₹5,854 Cr
  • Standalone Revenue
    ₹162 Cr
    YoY +3%
  • Standalone EBITDA
    ₹58 Cr

9M

  • Consolidated Revenue
    ₹589 Cr
    YoY +10%
  • Consolidated EBITDA
    ₹59 Cr

What they filed

Q1 FY27: revenue up 54.5%, net profit up 2810.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue173 179 205 202 213 +23%174 −3%250 +22%312 +54%
EBITDA-5 -44 -5 -16 -14 −180%-49 −11%-142 −2740%16 +200%
Net profit80 177 -85 10 20 −75%5,023 +2738%514 +705%291 +2810%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Capital allocation

high confidence
  • Capex ₹12,000 Cr 70:30 or 35:65 equity:debt for the remaining requirement after initial equity infusion
    • Copper and fertilizer projects ₹12,000 Cr
    So, FY'26-27 and FY'27-28. These two years, we would be deploying on CAPEX almost somewhere close to INR 12,000 crores to INR 13,000 crores. That is the amount that would be spent both on copper and fertilizer project together as combined.
  • Debt Debt disclosed
    • Repayment Repaid USD 130 million (approx INR 1,100 crores) judgment funding in January 2026 after DyStar proceeds were received. ₹1,100 Cr
    So, if you go back one and a half year, we borrowed USD 130 million as judgment funding. And that was obtained from Singapore in our wholly-owned subsidiary, which was infused in the project in India. And that USD 130 million, as soon as the DyStar proceeds are received in January beginning, the entire loan was repaid.
  • M&A Makilala Mining Corporation Acquisition · Announced · AUM $780 Mn

    To secure copper off-take and favorable pricing for the copper project.

    Potential 20-40% stake in a mine producing 1,20,000 tonnes of copper annually.

    That has not been crystallized yet Manoj bhai but the stake which is under discussion will range from somewhere around 20% to 40% in that range. That would be the stake that we are working on right now.
  • Liquidity Cash ₹5,854 Cr Net proceeds from DyStar resolution, available for strategic investments and capital gains tax.
    This exceptional value realization is net of expenses and is accounted at approximately INR 5,854 crores, marks not only the closure of the longstanding dispute, but also the beginning of a new strategic chapter.

Guidance & targets

Capacity

  • Copper project first phase operations start Capacity · FY27 · High confidence April 2027
    We are on track as the earlier targets that we have set and we are expecting the first phase to start operations on April 2027. 1st April that is the target date.

    — Manish Kiri

  • Copper project full first phase operational Capacity · FY28 · High confidence March 2028
    It may be a month earlier, but we are expecting the full first phase operational from April 2027 to March 2028 that is next year.

    — Manish Kiri

  • Fertilizer project full operational Capacity · 2028 · High confidence Q4 2028
    The current dates which are on track is the quarter from September to December 2028, where fertilizer would be fully operational.

    — Manish Kiri

  • Phosphatic fertilizer production Capacity · full operational · High confidence 1.1 million tonnes
    And we would be making almost 1.1 million tonnes phosphatic fertilizer for replacing the imports.

    — Manish Kiri

  • Copper tube plant operationalization Capacity · March/April · High confidence Operational
    And that will be the first plant which will be operational by March, April.

    — Manish Kiri

Revenue

  • Copper project first phase revenue Revenue · FY28 · High confidence INR 20,000-25,000 crore
    That will generate the overall revenue of somewhere between INR 20,000 crore to INR 25,000 crore. That is the expected top line from the first phase, which is almost half of the total revenue which we are expecting on full operations.

    — Manish Kiri

Profitability

  • Copper project EBITDA (FY27-28) Profitability · FY27-28 · High confidence INR 1200-1500 crore
    So, 2027-28 Financial Year, we are expecting the EBITDA of at least INR 1200 crore to INR 1500 crore.

    — Manish Kiri

  • Copper project target EBITDA (3-4 years) Profitability · within 3-4 years · Medium confidence INR 4,500-5,000 crore
    So, gradually the EBITDA will ramp up year-on-year and within three to four years, the projected target EBITDA to achieve is somewhere around INR 4,500 crores to INR 5,000 crores.

    — Manish Kiri

Capex

  • Total CAPEX (FY26-27 & FY27-28) Capex · FY26-27 & FY27-28 combined · High confidence INR 12,000-13,000 crore
    So, FY'26-27 and FY'27-28. These two years, we would be deploying on CAPEX almost somewhere close to INR 12,000 crores to INR 13,000 crores.

    — Manish Kiri

Financials

  • Financial closure for copper and fertilizer projects Financials · before end of March · Medium confidence Achieved
    So we are expecting before the end of March, we should achieve the final financial closure. We do have certain commitments from financial institutions, but we hope to achieve financial closure in the next couple of months.

    — Manish Kiri

Market Share

  • Fertilizer branded product trading volume Market Share · 2026 · High confidence up to 1 lakh tonnes
    The plan will be to, let us say, plan this year will be up to 1 lakh tonnes of traded products and only NPKs, nothing else.

    — Ranjit Singh Chugh

What to watch in Q4 FY26

Financial Closure for Copper & Fertilizer Projects

Before end of March
Current Actively working on it, commitments from financial institutions in place.
Target Final financial closure achieved.

Why it matters

Crucial for securing the necessary funding for the ambitious greenfield projects and ensuring timely execution.

So we are expecting before the end of March, we should achieve the final financial closure. We do have certain commitments from financial institutions, but we hope to achieve financial closure in the next couple of months.

Risks & concerns

  • Dyes & Intermediates Market Headwinds

    medium

    Subdued global demand and competitive pricing pressure impacting the core business.

    Management acknowledged

  • Copper Sector Environmental Concerns

    medium

    Analyst raised concerns about the 'tricky' nature of the copper sector due to environmental issues.

    Analyst acknowledged

  • Shareholder Disappointment on Dividends

    low

    Board's decision to prioritize project investment over immediate dividends/buybacks may not align with all shareholder expectations.

    Analyst acknowledged

Q&A highlights

6 direct, 1 evasive
DyStar Proceeds & Shareholder Returns Evasive
I understand that the short-term expectations on dividend could be there in the market. But as I mentioned, the company after long deliberations and discussions, the board members, all of us decided to strengthen

Analyst challenged management's decision to not pay dividends despite significant cash inflow, highlighting shareholder expectations vs. board's strategic priorities.

Asked by Manoj Bhura

Copper Project CAPEX Funding Direct
So, if you go back one and a half year, we borrowed USD 130 million as judgment funding. And that was obtained from Singapore in our wholly-owned subsidiary, which was infused in the project in India. And that USD 130 million, as soon as the DyStar proceeds are received in January beginning, the entire loan was repaid.

Clarified the source of initial equity infusion (USD 130M loan, now repaid) and the future funding mix (equity/debt) for the large CAPEX, addressing concerns about capital sources.

Asked by Kevin Gandhi

Copper Project Timelines & Revenue Targets Direct
We are on track as the earlier targets that we have set and we are expecting the first phase to start operations on April 2027. ... That will generate the overall revenue of somewhere between INR 20,000 crore to INR 25,000 crore.

Provided specific, forward-looking operational timelines and significant revenue/EBITDA targets for the new copper business, crucial for future valuation.

Asked by Yashwant Rajput

Makilala Mining Stake & Project Dependency Direct
The dependency for the copper project is not on Celsius at all. It is only the addition if it happens and when it happens. If it does not happen also, it does not affect our project at all, zero, no impact at all.

Clarified that the potential Makilala Mining stake is an opportunity, not a critical dependency, reassuring investors about raw material security for the main copper project.

Asked by Bharat Kumar

Copper Sector Overcapacity Risk Direct
Today, India is producing, including Adani's production, at around 0.8 million or 8 lakh tonnes. Today's capacity, today's requirement stands already Manish ji has said around 18 lakhs. ... our requirement, I am pretty confident would have crossed 3 million, more than 3 million.

Management provided a detailed market outlook, demonstrating that despite new entrants, India's copper demand significantly outstrips projected supply, mitigating overcapacity concerns.

Asked by Kevin Gandhi

Fertilizer Business Model & Import Substitution Direct
So the logic of fertilizer here is the phosphatic fertilizer, which is DAP and NPK. On an average, we import in the country around 8 million tonnes to 9 million tonnes per year. And we would be making almost 1.1 million tonnes phosphatic fertilizer for replacing the imports.

Explained the strategic rationale for entering the fertilizer business as a 100% import substitute and its backward integration with the copper project's waste products.

Asked by Viraj Mahadeva

Financial Closure Status Partial
Not a full financial closure. We have not achieved the final financial closure yet. We are working on it right now in active progress and the speed has already been expedited since the equity is in place now. So we are expecting before the end of March, we should achieve the final financial closure.

Provided an update on the critical financial closure milestone, indicating progress and a near-term target, which is key for project execution.

Asked by Manoj Bhura

No Rights Issue for Project Funding Direct
No. No rights issue proposal. There will be no rights issue proposal. Nothing. ... I just mentioned few times earlier that we will be borrowing. The rest of the requirement would be by taking loans and not by having any rights issue or anything.

Addressed concerns about potential equity dilution by confirming that the remaining project funding would be through debt, not a rights issue.

Asked by Vinu Gopal Chidurupa

2 min read 6 chapters

Detailed narrative

DyStar Resolution and Financial Reset

Kiri Industries successfully concluded its 11-year legal battle regarding DyStar on December 31, 2025, resulting in a net exceptional gain of approximately INR 5,854 crores. This significant inflow of funds marks a profound financial reset for the company, strengthening its foundation and enabling a strategic pivot towards long-term growth initiatives. The board has explicitly decided to prioritize these investments over immediate shareholder returns like dividends or buybacks.

Ambitious Greenfield Copper and Fertilizer Projects

The company is embarking on large-scale greenfield copper and fertilizer projects, which are expected to be key long-term growth drivers. The total CAPEX for these combined projects is projected to be INR 12,000-13,000 crores over FY26-27 and FY27-28. Key approvals, including environmental clearances, are secured, and land acquisition is substantially complete, with construction already in progress and major equipment orders placed.

Copper Project Timelines and Revenue Potential

The first phase of the copper project is targeted to commence operations by April 2027, with full first-phase operationalization expected by March 2028. This initial phase alone is projected to generate INR 20,000-25,000 crores in revenue and an EBITDA of INR 1,200-1,500 crores in FY27-28. Management anticipates the project's EBITDA to ramp up to INR 4,500-5,000 crores within 3-4 years of full operation.

Fertilizer Business as Strategic Import Substitute

The fertilizer project focuses on phosphatic fertilizers (DAP and NPK), aiming to produce 1.1 million tonnes annually, serving as a 100% import substitute against India's current import of 8-9 million tonnes per year. This venture is strategically linked to the copper project, as it converts Spent Sulfuric Acid, a waste product from copper smelting, into value-added fertilizers. Full operationalization of the fertilizer plant is expected by Q4 2028.

Raw Material Security and Risk Mitigation

Kiri Industries has secured indicative confirmations for over 1 million tonnes of copper concentrate from global miners (Chile, Peru, Africa, Australia) for its 1.2 million tonnes smelter requirement. Management clarified that while exploring a 20-40% stake in Makilala Mining Corporation (valued at USD 780 million) for potential off-take, the copper project's dependency is not on this acquisition. The new facilities are designed with world-class EHS standards, including zero liquid discharge and renewable energy, to mitigate environmental risks.

Dyes and Intermediates Business Performance

The traditional dyes and intermediates business faced a challenging environment in Q3 FY26, marked by subdued global demand and competitive pricing pressures. Consolidated revenue for Q3 FY26 was INR 174 crores, showing a sequential decline. However, standalone revenue grew 3% YoY to INR 162 crores, and 9M FY26 standalone revenue grew 14% YoY to INR 537 crores. The company expects improved operational EBITDA going forward due to the cessation of legal costs.

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