Kiri posts consolidated net loss of ₹22.5 Cr in Q2FY27 on ₹57 Cr non-cash treasury swing

Kiri Industries swung to a consolidated net loss of ₹22.53 Cr in Q2 FY27, against a net profit of ₹19.65 Cr in Q2 FY26 and ₹290.70 Cr in Q1 FY27. The swing is not an operating story: it is driven almost entirely by Ind AS 109 fair-value accounting on the company's treasury book. This quarter carried a ₹57.30 Cr unrealised, non-cash mark-to-market loss on FVTPL investments, versus a ₹192.29 Cr unrealised gain in Q1 FY27 (the reason that quarter's profit looked so large) and a negligible ₹0.12 Cr hit in Q2 FY26. Strip the treasury swing out and underlying earnings (EAT plus the recurring associate income line) rise to roughly ₹34.8 Cr this quarter, up ~76% YoY from an adjusted ~₹19.8 Cr in Q2 FY26, though still down ~65% from Q1 FY27's adjusted ~₹98.4 Cr — so the YoY underlying trend is improving even as the headline and the sequential trend are weaker. Standalone told a similar story: a ₹22.70 Cr loss after tax, driven by the same ₹56.85 Cr non-cash fair-value loss, against standalone operating EBITDA of just ₹6.86 Cr.

Operationally, consolidated revenue from operations grew 40% YoY to ₹298.55 Cr on firmer dye-intermediate pricing, particularly H-Acid (now ₹800-900/kg versus ₹350-400 a year ago, per the prior concall), but slipped 4% QoQ from ₹312.36 Cr. Margins moved in opposite directions depending on where you look: EBITDA margin improved YoY to -0.7% (₹-2.09 Cr) from -6.4% (₹-13.69 Cr) in Q2 FY26 — the core chemicals business is less loss-making than a year ago — but compressed QoQ from +6.8% (₹21.39 Cr) in Q1 FY27, since management says higher market prices were only partially captured this quarter because a significant share of sales executed against orders contracted earlier at older prices. The 40%-owned associate, Lonsen Kiri Chemical Industries (LKCIL), contributed ₹16.15 Cr of profit, down sharply from ₹99.11 Cr in Q2 FY26 and ₹20.68 Cr in Q1 FY27, further dragging the YoY and QoQ net-profit comparisons.

The stock went into the print at ₹486.45, down 13.8% over the past month of trading.

There is no analyst consensus to grade this against — Kiri carries nominal coverage with no revenue/profit estimates on record for the quarter, so vsStreet is unknown. Management gives no formal quantified guidance for this specific print either; the only forward references on file are the Q1 FY27 concall targets (70-75% dye-intermediate capacity utilisation in FY27, and the copper/fertilizer complex phasing — tube by June 2027, rod by Aug-Sep 2027, refinery by Jan 2028, full ramp now FY29-30 after the FY28 target was withdrawn). Nothing in this quarter's commentary changes those targets; management reiterates the same cautiously-optimistic read, saying it expects 'improved realisations and profitability from its dyes and dye intermediates operations in coming quarters,' subject to prices holding — consistent with, not contradicting, what was said in August. The quarter's corporate actions line up with that capex story: the board got in-principle approval for a preferential issue (Nov 4) on top of the ₹93.13 Cr already raised via warrant conversion in H1 FY27 (lifting paid-up capital to ₹65.17 Cr), the Makilala Mining 40% stake acquisition was completed (Oct 28-Sep 9) and a new Chile subsidiary was incorporated (Oct 21) — both feeding the copper-ore sourcing pipeline behind the ₹12,000 Cr capex plan.