Kiri Industries Limited — Q4 FY25 earnings call

Call held 2 Jun 2025

Management summary

Kiri Industries reported a strong turnaround in Q4 FY25 and FY25 stand-alone performance, driven by improved business momentum and operational agility. A significant breakthrough was achieved with the signing of the DyStar stake sale agreement for $676.3 million, expected to close by October 2, 2025. The company is also progressing with a large-scale copper and fertilizer greenfield project, while aiming to double Dyes and Intermediates revenue to ₹1,500 crores through capacity utilization and product mix improvement, supported by favorable regulatory changes like BIS.

Highlights

  • Q4 FY25 Stand-alone Revenue from operations: ₹186.22 crores, up 19% QoQ.

  • Q4 FY25 Stand-alone PAT: ₹1.8 crores, a turnaround from a loss of ₹29 crores in Q4 FY24.

  • FY25 Stand-alone PAT: ₹4.4 crores, a sharp reversal from a loss of ₹94 crores in FY24.

  • DyStar stake sale agreement signed on May 29, 2025, for 37.57% stake to Longsheng for $676.3 million, with an additional $20.3 million potentially payable.

  • DyStar deal expected to close by October 2, 2025.

  • Greenfield copper and fertilizer project (Indo Asia Copper Limited) Phase 1 investment: around ₹8,000 crores, projected annual revenue exceeding ₹45,000 crores.

  • Targeting ₹1,500 crores annual revenue from Dyes and Intermediates segment with 8-10% EBITDA margin.

  • Legal expenses expected to halve from ₹12-16 crores/quarter to ₹7-8 crores/quarter from June 2025 onwards.

Concerns

  • Copper Concentrate Sourcing for Greenfield Project

Key financials

2 periods

Q4 FY25

  • Stand-alone Revenue
    ₹186.22 Cr
    QoQ +19%
  • Stand-alone PAT
    ₹1.8 Cr

FY25

  • Stand-alone Revenue
    ₹655 Cr
    YoY +4%
  • Stand-alone PAT
    ₹4.4 Cr
  • Consolidated Revenue
    ₹740 Cr
    YoY +4.4%
  • Consolidated Net Loss
    ₹-108 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.

Guidance & targets

Revenue

  • Annual Revenue (Dyes and Intermediates segment) Revenue · next year · High confidence ₹1,500 crores
    anticipate INR 1,500 crores of annual revenue from our Dyes and Intermediates segment.

    — Manishbhai Kiri

  • Annual Revenue (Copper and Fertilizer Project) Revenue · full operation basis · High confidence exceeding ₹45,000 crores
    projected annual revenue exceeding INR 45,000 crores.

    — Manishbhai Kiri

Profitability

  • EBITDA Margin (Dyes and Intermediates segment) Profitability · next year · High confidence 8% to 10%
    we should be having at least 8% to 10% EBITDA on that.

    — Manishbhai Kiri

  • EBITDA Margin (Copper Segment) Profitability · full operation basis · High confidence 8% to 12%
    you guided 8% to 12% EBITDA margin for the copper segment.

    — Manishbhai Kiri

Capex

  • Phase 1 Investment (Copper and Fertilizer Project) Capex · next 2 to 2.5 years · High confidence around ₹8,000 crores
    Our greenfield project in copper and fertilizer under Indo Asia Copper Limited is progressing well with Phase 1 requiring around INR 8,000 crores of investment

    — Manishbhai Kiri

DyStar Sale Proceeds

  • DyStar Sale Proceeds (Pre-tax) DyStar Sale Proceeds · post DyStar sale · High confidence somewhere close to ₹6,000 crores
    when you convert all this into Indian rupee, you are looking at somewhere close to INR 6,000 crores pretax.

    — Manishbhai Kiri

  • DyStar Sale Proceeds (Post-tax) DyStar Sale Proceeds · post DyStar sale · Medium confidence ₹5,200 crores to ₹5,300 crores
    Yes, INR 5,200 crores to INR 5,300 crores, correct. That's a fair assumption.

    — Manishbhai Kiri

DyStar Sale Closure

  • Deal Closure Date DyStar Sale Closure · by October 2, 2025 · High confidence October 2, 2025
    The deal is expected to close by October 2, 2025

    — Manishbhai Kiri

JV Profitability

  • JV (Lonsen Kiri) EBITDA JV Profitability · FY26 · High confidence ₹150 crores to ₹200 crores
    JV will make EBITDA somewhere in the range of INR 150 crores to INR 200 crores.

    — Manishbhai Kiri

Legal Expenses

  • Quarterly Legal Expenses Legal Expenses · from June onwards · High confidence ₹7 crores, ₹8 crores

    Previously ₹12 crores to ₹16 crores → ₹7 crores, ₹8 crores

    from this month onwards, from June onwards, we are actually expecting the legal expenses to go half. So to give you a number perspective, right, we were running between somewhere close to INR 12 crores to INR 15 crores, INR 16 crores, including receivables cost, okay? So that is the number that we have been looking at every quarter. So that may reduce to half.

    — Manishbhai Kiri

Risks & concerns

  • Copper Concentrate Sourcing for Greenfield Project

    high

    Management stated it's the 'most challenging and toughest part' and they are 50% tied up, needing another 6 months to a year for full tie-up of 1.8-2 million tonnes annually.

    Management acknowledged

  • DyStar Deal Closure Delays

    medium

    While the deal is expected to close by Oct 2, 2025, there's a 30-day extension period if regulatory approvals are pending. If Longsheng defaults, the receiver can move to the second bidder, which could introduce further delays.

    Management acknowledged

Areas of evasion (1)

  • specific identity of the copper entity head (explained as sensitive/team building in progress)

Q&A highlights

3 direct
DyStar Sale Proceeds & Tax Implications Direct
Yes, INR 5,200 crores to INR 5,300 crores, correct. That's a fair assumption.

Clarifies the significant net cash inflow expected from the DyStar sale, including a ballpark post-tax figure, which is a major event for the company.

Asked by Yash Dantewadia

Copper Concentrate Sourcing Risk for Greenfield Project Direct
See, that is the most challenging and toughest part. The highest work that we would need to make is to do offtake contracts for copper concentrate for the entire facility... With certain contracts which we have executed till now, we are at 50% tie-up from Chile, Africa and Peru, but we are still 50% away, and it will still take us another 6 months to a year before we have 100% or 125% of our requirement is fully tied up with offtake agreements.

Highlights a critical operational risk for the large greenfield copper project and provides specific details on the current status and timeline for mitigation.

Asked by Bhavishya Daluka

Rationale for Dyes & Intermediates Revenue Growth Target Direct
Our current capacities are underutilized. We are utilizing only 42% capacity of entire installed capacity of Kiri on stand-alone basis on all plants. So we will be ramping up our capacities, and ramping up with value-added products with improvement of product mix. So that product mix improvement would actually drive the revenue as well as profit growth, both.

Explains how the company plans to achieve a significant revenue increase in its core Dyes & Intermediates business without new CAPEX, focusing on existing underutilized capacity and product mix, supported by regulatory changes like BIS.

Asked by Sandeep Raj

3 min read 6 chapters

Detailed narrative

Q4 FY25 & FY25 Financial Turnaround

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.

DyStar Stake Sale & Proceeds

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.

Greenfield Copper & Fertilizer Project Progress

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.

Dyes & Intermediates Segment Outlook

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.

Impact of BIS & Legal Cost Reduction

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.

Consolidation Changes & JV Relationship

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.

This is an AI-generated summary of a publicly available earnings call transcript.
View original transcript

More Chemicals earnings calls