Kasturi Metal Composite Q2 FY27 Update: Profitability Declines Amidst Cost Pressures

Kasturi Metal Composite Limited (KMCL) has released an operational business update for Q2 FY27, highlighting a decline in H1 profitability despite revenue resilience. Revenue from operations stood at ₹30.46 crore, a 4.9% decrease compared to H1 FY2025-26. Group profit after tax (PAT) also saw a decline to ₹1.20 crore, with the PAT/revenue margin falling to 3.93% from 7.71% in the previous comparable period. The company attributes this to input cost pressures, particularly material inflation (around 10%) and wire-rod inflation (around 20%), which outpaced finished goods price recovery. Conventional fiber sales faced wider pricing challenges, and selective order acceptance led to lower dispatched volumes, increasing fixed costs per unit. Loop End growth offered a partial offset, with higher-value sales increasing.