Kamdhenu Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Kamdhenu Ltd filed with BSE on 04 Jun 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Kamdhenu Limited reported FY26 profit before tax of INR106 crores versus INR80 crores in FY25, a growth of approximately 31%, with total sales volume growing 10% year-on-year to 39 lakh metric tons. Royalty income through franchisees grew 25% year-on-year to INR175 crores in FY26, driven partly by an increase in the royalty rate per ton to INR435 from INR398. Management described the franchisee-based asset-light model as central to the business and discussed steel industry demand trends, competitive positioning, and regional volume distribution during the Q&A.
Numbers mentioned
Profit before tax: INR106 crores (FY26)
p. 4
“we recorded profit before tax at INR106 crores compared to INR80 crores in FY25, representing a year-on-year increase of approximately 31%”
Satish Agarwal, page 4 of the filed PDF · View the filing
Total sales volume: 39 lakh metric tons (FY26)
p. 4
“During FY26, our total sales volume grew by 10% year-on-year to 39 lakh metric tons.”
Satish Agarwal, page 4 of the filed PDF · View the filing
Number of dealers: over 12,500
p. 4
“We now have over 12,500 dealers spread across India.”
Satish Agarwal, page 4 of the filed PDF · View the filing
Steel volume from franchisee route: 10.2 lakh metric tons (Q4 FY26)
p. 5
“Our steel volume from franchisee route have stood at 10.2 lakh metric tons in Q4 FY26 compared to 9.4 lakh metric tons in Q4 FY25, a year-on-year growth of 8%.”
Harish Agarwal, page 5 of the filed PDF · View the filing
Royalty income through franchisee: INR46 crores (Q4 FY26)
p. 5
“Royalty income through franchisee stood at INR46 crores in Q4 FY26 as compared to INR38 crores in Q4 FY25, a growth of 19% year-on-year.”
Harish Agarwal, page 5 of the filed PDF · View the filing
Total revenue: INR208 crores (Q4 FY26)
p. 5
“Total revenue stood at INR208 crores in Q4 FY26 as compared to INR198 crores in Q4 FY25, a growth of 5% year-on-year.”
Harish Agarwal, page 5 of the filed PDF · View the filing
Profit before tax margin: 11.7% (Q4 FY26)
p. 5
“Profit before tax margin stood at 11.7% for Q4 FY26.”
Harish Agarwal, page 5 of the filed PDF · View the filing
Profit after tax: INR17 crores (Q4 FY26)
p. 5
“Profit after tax stood at INR17 crores for Q4 FY26, a growth of 2% year-on-year.”
Harish Agarwal, page 5 of the filed PDF · View the filing
Steel volume from franchisee route: 37.9 lakh metric tons (FY26)
p. 5
“Our steel volume from franchisee route have stood at 37.9 lakh metric tons in FY26 as compared to 34.4 lakh metric tons in FY25 year-on-year growth of 10%.”
Harish Agarwal, page 5 of the filed PDF · View the filing
Royalty income through franchisee: INR175 crores (FY26)
p. 5
“Royalty income through franchisee stood at INR175 crores in FY26 as compared to INR139 crores in FY25, a growth of 25% year-on-year.”
Harish Agarwal, page 5 of the filed PDF · View the filing
Total revenue: INR763 crores (FY26)
p. 5
“Total revenue stood at INR763 crores in FY26 as compared to INR747 crores in FY25, a growth of 2% year-on-year.”
Harish Agarwal, page 5 of the filed PDF · View the filing
Profit after tax: INR78 crores (FY26)
p. 5
“Profit after tax stood at INR78 crores for financial year as '26 as compared to INR61 crores in FY25, a growth of 29% year-on-year.”
Harish Agarwal, page 5 of the filed PDF · View the filing
ROCE: 26.8% (FY26)
p. 5
“ROCE and ROE stood at 26.8% and 19.8%, respectively.”
Harish Agarwal, page 5 of the filed PDF · View the filing
Dividend: INR0.40 per share (FY26)
p. 5
“The Board has decided to announce a dividend of INR0.40 per share i.e., 40% of the face value of INR1 each.”
Harish Agarwal, page 5 of the filed PDF · View the filing
Royalty realization per ton: INR435 per metric ton (FY26)
p. 6
“This year, the average rate is INR435 per metric ton which was INR398 last year.”
Harish Agarwal, page 6 of the filed PDF · View the filing
Retail branded market share: 20% (FY26)
p. 6
“we are calculating retail branded market share is 20% of Kamdhenu brand product, retail branded.”
Harish Agarwal, page 6 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Royalty realization per ton — 10% to 15% increase · every year
stated as an aspiration by Harish Agarwal
p. 6
“Yes. Going forward, we are also planning to increase 10% to 15% every year along with a volume growth of around 10%, which we are achieving from last 2, 3 years.”
Harish Agarwal, page 6 of the filed PDF · View the filing
Volume growth — around 10%
stated as an aspiration by Harish Agarwal
p. 6
“Yes. Going forward, we are also planning to increase 10% to 15% every year along with a volume growth of around 10%, which we are achieving from last 2, 3 years.”
Harish Agarwal, page 6 of the filed PDF · View the filing
Plant capacity utilization — 100% · near future
stated firmly by Harish Agarwal
p. 7
“it will continue to have 100% utilization in the near future also.”
Harish Agarwal, page 7 of the filed PDF · View the filing
Franchisee expansion
stated as an aspiration by Harish Agarwal
p. 8
“In the South, we are planning to add more franchisees.”
Harish Agarwal, page 8 of the filed PDF · View the filing
Franchisee capacity data disclosure — Q1
stated firmly by Harish Agarwal
p. 8
“And hopefully, in the Q1, we will release this data, the existing capacity is around 5 million.”
Harish Agarwal, page 8 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said the royalty rate per ton was increased, driving the higher revenue growth relative to volume.
Answered by Harish Agarwal
Asked by Dhanya: Why did royalty income grow 25% while volume grew only 10%?
p. 6
“We have also increased the rate per ton of the royalties. That is why volume growth is 10%, but the revenue growth is 25%.”
Harish Agarwal, page 6 of the filed PDF · View the filing
Management said they are framing a treasury policy and considering shareholder rewards, without giving specifics.
Answered by Harish Agarwal
Asked by Dhanya: What are the plans for the roughly INR300 crores cash on the balance sheet?
p. 6
“We are framing a policy for treasury and we are planning on that how we can reward to our shareholders.”
Harish Agarwal, page 6 of the filed PDF · View the filing
Management said there is no plan for further investment in the paint business, and treasury will be used only for steel and shareholder rewards.
Answered by Harish Agarwal
Asked by Dhanya: Why was INR20 crores invested in the paint business, and will more be invested?
p. 6
“No. We are not having any such plan to invest more money in the paint business.”
Harish Agarwal, page 6 of the filed PDF · View the filing
Management explained that manufacturing plant utilization is at 100% and will remain so, with top-line moving based on price fluctuations while royalty income is the main driver of the bottom line.
Answered by Harish Agarwal
Asked by Rohit Kumar: What is the guidance for revenue growth from own manufacturing versus royalty income, and any margin guidance?
p. 7
“The bottom line will be affected with the price fluctuation in the manufacturing, but mainly from the royalty income.”
Harish Agarwal, page 7 of the filed PDF · View the filing
Management acknowledged competition from national brands like Tata Steel and Jindal as well as regional brands, but emphasized its dealer network advantage.
Answered by Harish Agarwal
Asked by Rohit Kumar: Is Kamdhenu seeing competition in the TMT bar segment?
p. 7
“We have the competition. But at the national level, we are competing with a big brand like Tata Steel, Jindal or at a regional level, we are competing with the reasonably strong brands.”
Harish Agarwal, page 7 of the filed PDF · View the filing
Management said price fluctuations largely pass through in the rerolling business and do not affect royalty income since royalty is charged per ton, not as a percentage.
Answered by Harish Agarwal
Asked by Prisha Rathi: How do steel price movements affect the company's performance given the franchisee and manufacturing models?
p. 7
“So the price fluctuation is not impacting our business at all, either in own manufacturing or in the branding business.”
Harish Agarwal, page 7 of the filed PDF · View the filing
Management said the focus is on increasing capacity of existing units rather than adding new ones, with the total unit count remaining around 100.
Answered by Harish Agarwal
Asked by Prashant Singh: How many franchises were added in FY26 and what is the pipeline for FY27?
p. 8
“We are focusing on the volume growth of the existing units. We are not inclined to add new units, but inclined to increase the capacity of existing units.”
Harish Agarwal, page 8 of the filed PDF · View the filing
Management gave the regional volume split and said they plan to increase market share in the South.
Answered by Harish Agarwal
Asked by Prashant Singh: Which geographies are identified as underpenetrated for growth?
p. 8
“in North, we have 31%, East, we have 35%, West we have 19%, and South, we have 15% on the overall volume.”
Harish Agarwal, page 8 of the filed PDF · View the filing
Management said the presentation data is outdated and updated capacity figures, around 5 million metric tons, will be released after compilation.
Answered by Harish Agarwal
Asked by Yatharth Taluja: What is the current utilization level across the franchisee network and how much headroom exists?
p. 8
“the existing capacity is around 5 million. But we will declare that data after compilation and having the other documents, against which we have achieved 39 lakh metric tons.”
Harish Agarwal, page 8 of the filed PDF · View the filing
Management said unbranded products are being eliminated from the market and described Kamdhenu's brand premium across regions.
Answered by Harish Agarwal
Asked by Ayushi: How is consumer preference shifting toward branded steel products and what advantage does this give Kamdhenu?
p. 9
“Unbranded products are being eliminated from the market. And branded products are making their position in the market.”
Harish Agarwal, page 9 of the filed PDF · View the filing
Risks flagged
Geopolitical disruptions creating volatility in input costs such as crude oil and natural gas
p. 3
“Geopolitical disruptions continued to create volatility in other key input costs, particularly crude oil and natural gas, which have a meaningful bearing on overall cost structure across the steel industry.”
Satish Agarwal, page 3 of the filed PDF · View the filing
Near-term margin pressure for the company and franchisee partners
p. 3
“While these factors may exert near-term pressure on margins, both for us and for our franchisee partners, the resilience of the underlying demand environment provides confidence in the ability to manage through this period.”
Satish Agarwal, page 3 of the filed PDF · View the filing
Softer average selling price for TMT bars
p. 3
“While the average selling price for TMT bars were marginally softer on a year-on-year basis, largely a function of the broader pricing environment in the steel sector, we did not allow this to dilute our focus on volume growth and market penetration.”
Satish Agarwal, page 3 of the filed PDF · View the filing
Competition from national and regional steel brands
p. 7
“There is no such business in India, which has no competition. We have the competition.”
Harish Agarwal, page 7 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.