Kamdhenu Reports Record H1FY26 Profitability, Optimises Capital for Future Growth

Kamdhenu Limited, India’s largest branded TMT bar player in the retail segment, has reported its strongest profitability yet for the first half of FY26, underscoring the strength of its asset-light, franchise-led model and steady royalty income streams. The company posted H1FY26 revenue from operations of ₹387 crore, while profit after tax rose 28% to ₹40 crore, supported by a healthy 33% growth in profit before tax to ₹54 crore and an expansion in PBT margins to around 14%. 

A key driver of earnings in the period was robust royalty income, which grew strongly year-on-year, aided by the scale of Kamdhenu’s pan-India franchise network and its extensive dealer–distributor ecosystem. The company continued to benefit from operating leverage and disciplined cost management, even as it navigated softer steel prices and regional demand disruptions. Kamdhenu’s own manufacturing facilities delivered stable volumes, while franchise volumes registered growth, reinforcing the traction of its brand-led, capital-efficient approach. 

In the second quarter of FY26, Kamdhenu faced headwinds from abnormal weather conditions and extended rainfall in some of its key markets, which temporarily weighed on volumes and quarterly revenue. Softer average selling prices, in line with weaker steel prices, also affected realizations and led to a modest sequential dip in both revenue and net profit. Despite these near-term pressures, management commentary has remained focused on sustaining margins and defending profitability rather than chasing low-quality volume growth in a volatile price environment. 

On the strategic front, the Board approved changes to the allocation of proceeds from a preferential issue after a portion of convertible warrants lapsed, leading to forfeiture of the advance received on those instruments. With the company having received a lower-than-originally-envisaged quantum of funds, the Board has chosen to reallocate and optimize the available capital, including diverting part of the earlier earmarked amount for office premises towards other stated objectives. The timeline for utilization of the funds has also been extended, subject to shareholder approval, providing Kamdhenu additional flexibility in phasing its growth plans. 

Overall, Kamdhenu’s H1FY26 performance highlights resilient earnings, margin expansion and prudent financial decision-making, even as the company operates in a cyclical and price-sensitive steel market. The combination of strong brand equity, a wide franchise network, recurring royalty income and calibrated capital allocation positions Kamdhenu to pursue future growth while maintaining a disciplined focus on profitability and shareholder value.