Kohinoor Foods FY26 Profit ₹80.68 Crore on Asset Sale

Kohinoor Foods Limited reported a net profit of ₹80.68 crore for the year ended March 31, 2026. The company also announced the full payment of its One Time Settlement (OTS) dues.

Reader Takeaway: Profit boosted by asset sale; auditor flags going concern uncertainty and unprovided interest.

What just happened

Kohinoor Foods posted an audited net profit of ₹80.68 crore for the financial year 2026. This profit includes a substantial exceptional gain of ₹95.99 crore. The company has also successfully completed its One Time Settlement (OTS) with lenders.

To fund the OTS, Kohinoor Foods sold its rice plant in Murthal, Sonipat, Haryana, for ₹190 crore.

Why this matters

The profit figure, while positive, is significantly influenced by a one-time gain from asset monetization. The full settlement of OTS debt reduces immediate financial pressure. However, the auditor's qualified opinion introduces significant concerns regarding the company's long-term viability and financial reporting.

The backstory

Kohinoor Foods has been under financial stress, leading to the OTS with its lenders. The sale of a key asset like the Murthal rice plant indicates a strategic move to deleverage the balance sheet and settle outstanding obligations.

What changes now

With the OTS settled and the debt burden eased, the company aims to stabilize operations. However, the auditor's qualifications, particularly regarding the going concern assumption and unprovided interest, will require close monitoring by investors and regulators.

Risks to watch

The primary risks include the auditor's qualified opinion, highlighting a material uncertainty about the company's ability to continue as a going concern due to past operational losses and negative net worth. Additionally, the non-provision of ₹3.18 crore interest on a revoked corporate guarantee poses a compliance and financial risk.

Auditor Observations

N C Raj & Associates, the statutory auditor, issued a qualified opinion. Key qualifications include the non-provision of ₹3.18 crore interest for the year (cumulative ₹15.28 crore) towards a revoked corporate guarantee of its US subsidiary. The auditor also cited material uncertainty regarding the company's going concern status, contrasting management's assessment.

Management Commentary

Management stated that the company remains a going concern, with asset values exceeding their carrying amounts. They emphasized that the full OTS payment is key to financial restructuring and stabilization.

Context metrics (time-bound)

For the year ended March 31, 2026:

• Revenue from Operations: ₹147.60 crore
• Net Profit: ₹80.68 crore
• Exceptional Gain: ₹95.99 crore
• Rice Plant Sale Consideration: ₹190 crore
• Unprovided Interest (FY26): ₹3.18 crore
• Cumulative Unprovided Interest: ₹15.28 crore