Kothari Fermentation Posts FY26 Net Loss of Rs 2.99 Crore

Turnover fell to Rs 112.13 crore while the company shifted to a net loss of Rs 2.99 crore.

Reader Takeaway: Higher production volumes failed to offset rising raw material and finance costs, resulting in a net loss.

What just happened

Kothari Fermentation & Biochem Limited has released its 36th Annual Report for the fiscal year ending March 31, 2026. The company reported a net loss of Rs 2.99 crore, a significant reversal from the Rs 0.81 crore profit recorded in FY 2024-25. Turnover also saw a slight contraction, dropping to Rs 112.13 crore from Rs 114.23 crore in the prior year.

Why this matters

Despite increased production—which rose 5.38% to 16,102 MT—the company could not maintain profitability. Management attributed the downturn to unfavorable market conditions, escalating raw material expenses, and higher finance and depreciation costs. The Board has opted not to declare a dividend for the year, reflecting the current strain on internal cash flows.

Governance and Corporate Action

The upcoming Annual General Meeting on September 30, 2026, will address several key resolutions. Shareholders are asked to approve salary revisions for Chairman and Managing Director Pramod Kumar Kothari (Rs 6 lakh per month) and Whole-Time Director Kavita Devi Kothari (Rs 5.75 lakh per month), effective April 1, 2026. Mr. Kothari is also up for re-appointment following retirement by rotation.

Risks to watch

Profitability remains the primary concern for investors. With an installed capacity of 25,000 MT and current utilization at 76.68%, the company has room to scale, but achieving operational efficiency is critical to reversing the current loss-making trend. Monitoring management's ability to control input costs and stabilize working capital will be essential for assessing a potential turnaround.

Context metrics

• Production: 16,102 MT (up from 15,280 MT)
• PBDIT: Rs 7.24 crore (down from Rs 11.97 crore)
• Capacity Utilization: 76.68%