Kiri Industries

Kiri Industries demonstrated a strong financial turnaround in Q4 FY25 and the full fiscal year. Stand-alone revenue for Q4 FY25 increased by 19% QoQ to ₹186.22 crores, achieving a PAT of ₹1.8 crores, reversing a loss of ₹29 crores in Q4 FY24. For FY25, stand-alone revenue grew approximately 4% YoY to ₹655 crores, with a PAT of ₹4.4 crores, a significant reversal from a loss of ₹94 crores in the previous year. Consolidated figures also showed revenue growth of 4.4% to ₹740 crores for FY25, though a net loss of ₹108 crores was reported.

A major development is the signing of a share purchase agreement on May 29, 2025, to sell Kiri's 37.57% stake in DyStar to Longsheng for a base consideration of $676.3 million, with an additional $20.3 million potentially payable. The deal is expected to close by October 2, 2025, with a possible 30-day extension. Management estimates the pre-tax proceeds to be around ₹6,000 crores, and post-tax proceeds in the ballpark of ₹5,200-5,300 crores, after accounting for a taxable amount of ₹700 crores.

The company is actively progressing its greenfield copper and fertilizer project under Indo Asia Copper Limited. Phase 1 of this project requires an investment of approximately ₹8,000 crores over the next 2 to 2.5 years, with ₹1,100 crores already committed as equity. This project is projected to generate annual revenue exceeding ₹45,000 crores upon full operation, with an anticipated EBITDA margin of 8% to 12%, driven by value-added products, new technology, and precious metal recovery.

Kiri Industries aims to achieve ₹1,500 crores in annual revenue from its Dyes and Intermediates segment in the next fiscal year, targeting an EBITDA margin of 8% to 10%. This growth is expected to come from increased capacity utilization, currently at 42% of installed capacity, and an improved product mix, including new dye intermediates replacing Chinese imports. No new CAPEX is planned for this segment, with growth driven by operational efficiencies and favorable regulatory changes like the mandatory BIS standards.

The implementation of Quality Control Orders (QCO) and mandatory BIS standards, particularly for H-acid and vinyl sulphone by August 13, is expected to positively impact the Dyes and Intermediates industry by enforcing quality and making Chinese imports more difficult. This will support domestic price improvements and Kiri's revenue growth. Furthermore, legal expenses, which were previously ₹12-16 crores per quarter, are anticipated to reduce by half to ₹7-8 crores per quarter from June onwards, contributing to margin improvements.

The company clarified that the decline in consolidated top-line figures over the past three years is primarily due to a change in accounting practice, where its Indian JV, Lonsen Kiri, is now consolidated as a one-line profit from associate companies rather than line-by-line. Despite the DyStar sale, the operational relationship between Lonsen Kiri and DyStar, including supplies, is expected to continue unchanged. The JV is projected to generate an EBITDA of ₹150-200 crores in FY26, with Kiri holding a 40% share.