📉 The Financial Deep Dive
Kamdhenu Ventures' investor update for February 2026 reveals a downturn in its Q3 FY26 performance. Consolidated revenue from operations dipped 15% year-on-year to ₹63.2 Cr, with the nine-month period (9M FY26) seeing a 7% decrease to ₹170.3 Cr. Profit After Tax (PAT) experienced a sharper contraction, falling 50% YoY to ₹1.0 Cr in Q3 FY26 and 40% in 9M FY26 to ₹2.9 Cr. While consolidated EBITDA margins remained stable at 6.3% for Q3 and 6.5% for 9M FY26, PAT margins saw significant pressure.The company's balance sheet shows an increase in leverage, with non-current borrowings rising from ₹0.2 Cr to ₹4.1 Cr and current borrowings reaching ₹23.9 Cr by September 2025. Total assets grew to ₹278.5 Cr, with notable increases in inventories and trade receivables, signaling potential working capital strain. A key concern is the operating cash flow, which plummeted to ₹0.5 Cr in the six months ended September 2025, a stark drop from ₹3.4 Cr in the prior year period.
🚩 Risks & Outlook
Management commentary, while not providing explicit financial guidance, highlights a strategy focused on 'Product Premiumization' and expanding the dealer network to 4,466 dealers. This has led to a 42% increase in Average Selling Price (ASP) per KG/Ltr since FY15. The company aims to capitalize on India's urbanization and government housing initiatives. However, the current financial trends — declining revenues and profits, rising debt, and weak operating cash flow — present significant execution risks. Investors will need to monitor if the strategic initiatives can effectively reverse the current performance dip and improve profitability and cash generation in the coming quarters.Impact (7/10): The declining revenue and PAT, coupled with rising debt and weak cash flow, indicate potential headwinds that could impact shareholder returns.