Kriti Industries (India) Limited — Q2 FY26 earnings call

Call held 11 Nov 2025

Management summary

Kriti Industries reported a challenging Q2 FY26 with significant revenue and profit declines, primarily attributed to unprecedented extended monsoon rains impacting its core Agri and building material segments. Despite the downturn, management indicated market share gains of 5-7% and an improved MP market share of 58-59%. The company has deployed INR 67-68 crores from warrants for capex and is strategically working on new market expansion and building product initiatives, anticipating a recovery post-Diwali and improved margins quarter-on-quarter.

Highlights

  • Market share improved by 5-7% generally, with MP market share estimated at 58-59%.

  • No inventory losses due to stable resin prices.

  • Long-term positive outlook for Agriculture and Building Material sectors (6-7 years growth).

  • Strategic initiatives identified for differentiated market presence in building products.

Concerns

  • Revenue declined 27% YoY to INR 86 crores in Q2 FY26.

  • Q2 FY26 EBITDA loss of INR 4 crores (vs. profit of INR 5 crores YoY).

  • Q2 FY26 Net Loss of INR 10 crores.

  • H1 FY26 Revenue declined 17% YoY to INR 310 crores, with a PAT loss of INR 2.4 crores.

  • Sales down 34% in Agri and 33% in building material due to unprecedented extended rains.

Key financials

2 periods

Q2

  • Revenue
    ₹86 Cr
    YoY -27%
  • EBITDA
    ₹-4 Cr
  • Net Loss
    ₹-10 Cr

H1

  • Revenue
    ₹310 Cr
    YoY -17%
  • EBITDA
    ₹11 Cr
  • EBITDA Margin
    3.5%
  • PAT Loss
    ₹-2.4 Cr

What they filed

Q1 FY27: revenue down 22.7%, net profit down 130.4% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue117 210 138 224 86 −27%136 −35%142 +3%173 −23%
EBITDA5 -1 0 15 -4 −179%6 +505%18 +7870%5 −65%
Net profit-4 -11 -4 7 -10 −172%-0 +96%4 +210%-2 −130%
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.

Order book

low confidence
The company's business model is more retail, not directly dependent on government supplies or large project orders.

Source: Inferred

Capital allocation

high confidence
  • Capex ₹67 Cr from warrants issued to investors and promoters
    out of total warrant issued, about 50% warrants have been converted and we have already invested in CAPEX and other CAPEX plan are in route. ... Out of about Rs. 75 crores, we have already, I would say about Rs. 67 crores, Rs. 68 crores would have been deployed.

Guidance & targets

Market Share

  • General Market Share Gain Market Share · last quarter · Medium confidence 5-7%
    general feeling is that we must have gained say 5% to 7% generally everywhere. That is the estimation as of now.

    — Shiv Singh Mehta

  • Madhya Pradesh Market Share Market Share · this time (Q2 FY26) · Medium confidence 58-59%

    From 50% today

    We are at about 50% around, but this time it will be closer to 58%, 59%. This is our first estimation.

    — Shiv Singh Mehta

  • Maharashtra Agri Market Share Market Share · current · Medium confidence 10-12%
    Agri, we will have a reasonable market share, but it will be around 10%, 11%, 12%.

    — Shiv Singh Mehta

Market Size

  • MP, Maharashtra, Rajasthan, Gujarat share of India's Agri-pipe demand Market Size · overall · Medium confidence 30-35%
    MP, Maharashtra, Rajasthan and Gujarat put together will constitute about 30% to 35% of overall demand of India.

    — Shiv Singh Mehta

Sector Growth

  • India Agriculture, Irrigation, Building Material Growth Sector Growth · next 6-7 years · High confidence Continue to grow
    Even all the projections and studies, they suggest that India on both Agriculture, irrigation, as well as on building material will continue to grow at least for the coming foreseeable six, seven years.

    — Shiv Singh Mehta

What to watch in Q3 FY26

Demand revival post-Diwali

Next quarter (Q3 FY26)
Current October was not comfortable, but positive signs of revival from Nov 6-7.
Target Sustained positive demand trends in Q3 FY26.

Why it matters

Crucial for revenue and profit recovery after a challenging Q2.

But post-Diwali, I think now things are where the monsoon is over. So, everyone was anticipating that from November 6th, 7th, that is last three, four days, the market has started showing positive signs of revival.

Risks & concerns

  • Impact of extended monsoon rains on sales and profitability.

    high

    Unprecedented heavy and extended rains in main Agri sales areas led to 34% decline in Agri sales and 33% in building material sales, impacting top-line and bottom-line.

    Management acknowledged

  • Geographical concentration leading to higher vulnerability to regional issues.

    medium

    Company's decline was sharper than industry due to concentration in MP, Rajasthan, Maharashtra, which were heavily impacted by rains, highlighting the need for diversification.

    Both acknowledged

Q&A highlights

4 direct, 1 evasive
Reasons for higher sales decline compared to industry peers. Direct
Our first level of study clearly suggests that the areas that is MP, Rajasthan, Maharashtra, where we are dominant, present, we have not lost market share and market volumes have declined. However, as you have very correctly pointed out, that our decline is sharper as compared to industry. It clearly indicates that geographical spread is equally essential and important.

Management attributes sharper decline to geographical concentration in rain-affected areas, implying a need for diversification.

Asked by Sunny Gosar

Demand trends post-monsoon and outlook for Q3. Partial
But post-Diwali, I think now things are where the monsoon is over. So, everyone was anticipating that from November 6th, 7th, that is last three, four days, the market has started showing positive signs of revival. But yes, October was again a month not very comfortable because of the extended rains during this period.

Provides an immediate outlook for Q3, indicating a post-Diwali revival after a challenging October.

Asked by Sunny Gosar

Impact of geographical diversification on overall revenues and timeline. Evasive
We are already working in new geographies, they take time to mature. And as such, when the good rains are, it means that water bodies are full. So, going forward for this next, I mean, up to summer, if there is an adequate supply of water for the farmland, we hope that the demand would be fairer and better than what it has been because normally there is a shortage of water, it would impact the irrigation.

Management acknowledges efforts but provides a vague timeline for new geographies to contribute, linking it to monsoon patterns.

Asked by Praneet

Market share gains in core markets despite overall industry decline. Direct
Industry has declined, I mean, similar numbers or maybe more because we have certainly not only managed our market share because if suppose there is a lack of demand and there is a lack of shortage of our product, we certainly find that due to preference, our sales volume, in terms of percentage of market share, we are on the better side of the numbers. So, we feel that the markets where we are present, our market share has improved.

Management claims market share improvement (5-7% generally, 58-59% in MP) even as the overall market declined, suggesting resilience in competitive positioning.

Asked by Praneet

Utilization of Rs. 150 crores raised from investors and promoters. Direct
out of total warrant issued, about 50% warrants have been converted and we have already invested in CAPEX and other CAPEX plan are in route. But we are very conscious that we will not just invest unless we have very clearly established our first step, second step, because it is all sequentially planned.

Clarifies that funds are being deployed for capex in a phased manner, indicating a cautious capital allocation strategy.

Asked by Chetan Sharma

Amount of funds already deployed from the Rs. 150 crores. Direct
Out of about Rs. 75 crores, we have already, I would say about Rs. 67 crores, Rs. 68 crores would have been deployed.

Provides a specific figure for capital deployed, showing progress on investment plans.

Asked by Chetan Sharma

2 min read 6 chapters

Detailed narrative

Challenging Q2 FY26 Performance

Kriti Industries reported a significant downturn in Q2 FY26, with revenue declining 27% year-on-year to INR 86 crores. The company recorded an EBITDA loss of INR 4 crores, a stark contrast to the INR 5 crores profit in the prior year, leading to a net loss of INR 10 crores for the quarter. For the first half of FY26, revenue stood at INR 310 crores (down 17% YoY), with an EBITDA of INR 11 crores (3.55% margin) and a PAT loss of INR 2.4 crores.

Impact of Unprecedented Rains

The primary driver for the poor performance was attributed to unprecedented heavy and extended monsoon rains, which severely impacted the company's main Agri sales areas. This resulted in a 34% decline in Agri sales and a 33% decline in building material sales, significantly affecting both top-line and bottom-line results. Management noted that the decline was sharper than the industry average due to the company's geographical concentration.

Market Share Gains Amidst Decline

Despite the overall market contraction, Kriti Industries claims to have gained market share. Management estimates a general market share gain of 5-7% across its operating regions. Specifically, in Madhya Pradesh, the company's market share is estimated to have increased from around 50% to 58-59%. This suggests that while volumes were down, the company maintained or improved its competitive standing.

Strategic Focus on Diversification and Building Products

Acknowledging the risks of geographical concentration, Kriti Industries has initiated efforts to expand into new markets, though these are expected to take time to mature. The company is also actively working on its building material segment, identifying key strategic initiatives to establish a differentiated market presence. Management expects these efforts to stabilize within a couple of months and show impact on the business thereafter.

Capital Deployment for Future Growth

From the INR 150 crores raised through warrants, approximately 50% have been converted, and INR 67-68 crores have already been deployed towards CAPEX and other planned investments. The company is adopting a cautious, sequential investment strategy, ensuring that each step is established before proceeding to the next, with plans to be on a guided path within the next two to four months.

Positive Outlook Post-Diwali

Management expressed optimism for a demand revival post-Diwali, noting positive signs from November 6th-7th, following a challenging October where rain trends continued. They anticipate a substantial improvement in the margin profile quarter-on-quarter as demand picks up, and project continued growth for the Indian Agriculture, Irrigation, and Building Material sectors over the next 6-7 years.

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