KIOCL Q3 Results FY26: ₹18.13 Cr Profit, Loss Narrows 78

Mumbai:  KIOCL Limited, a Miniratna PSU under the Ministry of Steel, reported a standalone net profit of ₹18.13 crore for the quarter ended December 31, 2025, marking a sharp turnaround from a loss of ₹47.79 crore in the same period last year.

The company's revenue from operations, however, declined 11.6% year-on-year to ₹159.65 crore from ₹180.55 crore, according to the exchange filing.

Financial Highlights (Standalone, Q3 FY26):

Nine-Month Performance (Apr-Dec FY26):

The company significantly narrowed its net loss for the nine-month period to ₹36.82 crore from ₹167.72 crore in the same period last year — a 78% improvement. Revenue from operations rose 14.4% to ₹393.13 crore from ₹343.75 crore.

Segment Performance Remains Under Pressure

Despite the overall profit, both operating segments continued to report losses:

• Pellet Plant: Segment loss of ₹49.31 crore

• Pig Iron Plant: Segment loss of ₹2.59 crore
  Total segment loss: ₹51.90 crore

The profit was driven by treasury operations and service income, which contributed ₹51.61 crore to pre-tax profit.

Key Drivers & One-Time Impacts

• Gratuity Provision: The company provided ₹111.58 crore during the quarter following revision of gratuity ceiling from ₹20 lakh to ₹25 lakh, effective October 1, 2025. This followed Dearness Allowance crossing 50% of basic pay, triggering the DPE OM dated 03.08.2017.

• New Labour Codes: An amount of ₹3.20 crore was recognised during the quarter. The company stated it will evaluate further impact once Central and State Rules are notified.

• Cost Reduction: Total expenses fell sharply by 32% YoY to ₹162.26 crore from ₹238.44 crore, primarily due to lower material costs and power & fuel expenses.

Governance Concern Raised by Auditors

In a significant observation, statutory auditors G Balu Associates LLP highlighted that the company has not been able to constitute an Audit Committee due to the absence of Independent Directors.

In a note accompanying the results, the company stated: "As the Company is a government entity, the appointment and reappointment of directors falls under the purview of the Government of India, which is in process. Consequently, in the absence of a duly constituted Audit Committee, the Board of Directors have reviewed and approved the unaudited standalone results."

Auditors drew attention to this non-compliance with the Companies Act, 2013 and SEBI Listing Regulations, though their conclusion was not modified.

Board Meeting & Disclosures

• Board Meeting: Commenced at 1:00 PM, concluded at 4:30 PM

• Scrip Code (BSE): 540680

• Symbol (NSE): KIOCL

• Equity Share Capital: 60,77,51,096 shares of face value ₹10 each

• Regulation 32 Statement: Not applicable to the company

The results are uploaded on the company's website at www.kioclltd.in.

Outlook

While KIOCL has staged a quarterly profit recovery aided by other income and cost controls, its core operations — pellet and pig iron segments — remain under stress. The governance gap concerning Independent Directors and Audit Committee constitution remains a key overhang.

*The company had reported a full-year loss of ₹204.58 crore for FY25.*