Kiri Industries Ltd

Volume movement clarification

• Company has made all requisite disclosures under Regulation 30 of the Listing Regulations.
• No material information has been withheld that could affect price or trading volume.
• Recent volume increase appears market-driven.
• All price-sensitive information has been disclosed promptly.
• Company will continue to comply and inform exchanges of material information.

Target overview

• Target: Kiri Capital (IFSC) Private Limited, an IFSC-based treasury management and holding company.
• Issued share capital: INR 2,00,00,000 comprising 20,00,000 equity shares of INR 10.
• Turnover: Nil; entity yet to commence business operations.
• Related party: wholly owned subsidiary of Kiri Industries; promoter group not involved.
• Industry: treasury management and holding of overseas subsidiaries.
• Objects: manage group treasury and serve as holding company for overseas subsidiaries.
• Regulatory approvals: Not Applicable.
• Completion timeline: Not Applicable.
• Consideration: Cash for 100% equity stake.
• Price: INR 2,00,00,000.
• Shareholding acquired: 100%.
• Background: newly incorporated on 19 August 2026; no operations yet.

Financial Performance

• Standalone revenue: INR 295 crore, up 63% YoY
• Standalone EBITDA: INR 17 crore, margin 5.86%
• Standalone material margin: 31.9% in Q1 FY27 (23.5% Q1 FY26)
• Standalone PAT: INR 270 crore
• Consolidated revenue: INR 312 crore, up 55% YoY
• Consolidated EBITDA: INR 37 crore, margin 7.84%
• Consolidated PAT: INR 270 crore
• Other income: Standalone INR 284 crore; Consolidated INR 286 crore
• Share of profit from associates: INR 21 crore; 30% QoQ gain (Lonsen Kiri)
• Finance costs declined after repayment; group largely free of external debt
• Copper project capex deployed to date: INR 1,400 crore (all equity)

Dyes & Chemicals Update

• Dyes business environment improved; prices up across Reactive Dyes, Vinyl Sulphone, H-Acid
• Raw-material costs rise with crude; realizations improve, supporting margins
• Standalone material margin expanded to 31.9% in Q1 FY27

Copper & Fertilizer Projects

• Integrated copper+fertilizer project progressing from design to construction; long-lead packages awarded
• Downstream: tube 35 KT by Jun-27; CCR 2.25 Lakh tonnes by Aug-Sep-27; refinery by Q3 FY29
• Value-added downstream: copper foil trial 5,000 KT; Phase 1-3 40 KT; ECMS scheme under consideration
• Copper concentrate MoUs ≈1 million tonnes window; 1.5 million tonnes required for full production; Oct-2028 firming
• Financial closure: >50% debt commitments; rest in process; likely in coming months
• Total project capex around INR 12,000 crore; additional infrastructure capex
• Capital deployed to date in copper project: INR 1,400 crore (all equity)
• Site near Pipavav Port for bulk imports/export logistics
• First copper revenue expected in Q1 FY28; full ramp by 2029-30
• Scrap plant to start by Dec 2027/Jan 2028; refinery to convert anodes to cathode (1.75 Lakh T)

Balance Sheet & Cash Flow

• Finance costs declined after debt repayment at Claronex Holdings; group largely external-debt-free
• Other income includes interest on inter-company loans and treasury gains
• JV share of profit: INR 21 crore; 30% increase QoQ

Q&A Highlights

• Dividend policy: Board has not declared a dividend; growth capital prioritized; no dividend yet
• Financial closure: >50% debt commitments; rest in process; expected in coming months
• TCE engaged as owner's engineer since Nov 2025; project mgmt, drawings approvals, detailed engineering
• Copper sourcing: MoUs for copper concentrate ~1 million tonnes; Oct-2028 transition to contracts
• First copper revenue expected in Q1 FY28; full ramp by 2029-30
• Debt repayment for the copper project starts in 2029; moratorium in place; no drawdown yet

Guidance & Outlook

• FY28 revenue target not fixed; projection is moving and will be updated as milestones progress
• Longer-term: 2029-30 majority copper revenue; ramp tied to commissioning milestones

Meeting Details

• Earnings conference call held on August 13, 2026 at 10:30 IST.
• Group meet basis (virtual) for discussion of Q1-FY27 financial performance.
• Organised as Earnings Conference Call with Investors/ General Public.
• Purpose: discussion of Q1-FY27 financial performance.
• Audio recording of the call will be available.

Business overview

• Core business: dyes, dye intermediates, basic chemicals with vertical integration.
• Zero Effluent manufacturing supports environmentally responsible operations.
• JV with Zhejiang Longsheng strengthens the dyes platform.
• Monetised DyStar investment; diversifying into copper and fertilizers.
• Entering a new strategic phase post-DyStar for long-term growth.

Key operational highlights

• DyStar matter resolved after final Singapore Court order.
• DyStar proceeds realised: USD 689 million.
• Integrated Copper & Fertilizer Complex planned at Jafrabad, Gujarat.
• Copper unit capacity 500,000 MTPA; NP/NPK fertilizer 1,050,000 MTPA.
• Total costs: copper 8,100 crore; fertilizer 3,600 crore; power/jetty 1,600 crore.
• Proposed equity ~INR 4,000 crore; INR 1,036 crore infused Sep 2024.
• Phased commissioning: Copper Tube Plant Q1 FY28; Rod Q2 FY28; Refinery Q3 FY29.

Financial performance

• Consolidated Q1-FY27 revenue INR 3,124 mn; PAT INR 2,700 mn; EPS 44.89.
• Standalone Q1-FY27 revenue INR 2,953 mn; PAT INR 2,702 mn; EPS 41.81.
• EBITDA margins: consolidated 5.09%; standalone 5.86%.
• Other income: standalone INR 2,841 mn; consolidated INR 2,859 mn.
• Finance costs significantly reduced after debt repayments; group substantially debt-free.

Capital structure & liquidity

• USD 689 million DyStar proceeds realized; strengthens liquidity.
• FY26 borrowings: current INR 368 mn; non-current INR 39 mn.
• Standalone equity FY26: INR 63,803 mn; consolidated equity FY26: INR 64,452 mn.

Strategic priorities & outlook

• Strategic shift to copper and fertilizers for long-term growth.
• Copper project IRR ~25%; phased capex and long lead times.
• Management expects improved returns via by-product economics and scale.
• Continue securing long-term copper concentrate and rock phosphate supply.
• Evaluated 16+ opportunities; copper identified as preferred large-scale deployment.

Issue overview

• Type: Preferential issue of convertible warrants; securities: convertible warrants.
• Total issue size: 492.02 crores; no revision or undersubscription reported.
• Main objectives: debt repayment, working capital, legal fees, group financing, and GCP.

Utilisation of Proceeds

• Debt repayment: utilisation this quarter none; end-quarter unutilised 2.65; starting balance 122.35.
• Working capital: utilisation this quarter 1.13; end-quarter unutilised 1.12; used for reactive dyes.
• Legal/Professional fees: utilisation this quarter 12.74; end-quarter unutilised 0.18; payments to legal firms.
• Financial assistance to group: utilisation this quarter 35.00; end-quarter unutilised 12.00; funding to step-down subsidiary.
• GCP: utilisation this quarter 16.06; end-quarter unutilised 12.73; for captive wind-solar project.
• Total proceeds received to date: entire PI proceeds received; no outstanding balance as of 30 June 2026.

Deployment of unutilised proceeds

• Unutilised funds deployed: HDFC Bank 27.46; Axis Bank 1.12; Fixed deposit 0.10.
• Total unutilised proceeds: 28.68.

GCP details

• GCP project: captive wind-solar hybrid power project; utilised 16.06.
• Board approval for allocation: not documented in MA.

Governance & Compliance

• Deviation from objects: not applicable.
• Means of finance unchanged (no change).
• No material events affecting viability reported; approvals status not explicitly stated.

Cost Auditor Reappointment

• Board reappointed M/s. V. H. Savaliya & Associates as Cost Auditors for FY 2026-27, effective 12/08/2026.
• Profile: Vinod H. Savaliya, FICMA and M.Com, 25+ years in cost accounting.
• Relationships with directors: Not applicable.