KRBL Limited Stock Analysis

Exceptional profit growth with Q3 PAT up 28% YoY to Rs. 170 crore and nine-month PAT up 53% YoY to Rs. 492 crore, demonstrating strong earnings momentum / Robust EPS expansion from Rs. 14.05 to Rs. 21.51 for nine months (53% growth), significantly outpacing revenue growth and indicating margin improvement / Excellent inventory management with favorable working capital change of Rs. 462 crore in nine months versus Rs. 83 crore prior year, improving cash generation / Minimal debt with finance costs declining to Rs. 4 crore for nine months (from Rs. 6.7 crore), indicating strong balance sheet with negligible leverage / Strong segmental performance with Agri segment profit up 57% YoY to Rs. 619 crore for nine months, while Energy segment profit up 20% to Rs. 57 crore / International revenue resilience with exports at Rs. 1,276 crore for nine months despite global headwinds, maintaining diversified geographic revenue base

Material legal contingency with ED investigation and qualified audit opinion regarding alleged USD 24.62 million transaction in AgustaWestland case involving subsidiary KRBL DMCC and Joint Managing Director / Asset attachment of Rs. 1,532 lakh worth of land and building at Dhuri, with Rs. 1,113 lakh deposit pending refund despite tribunal order, creating uncertainty / Revenue decline of 12% YoY in Q3 (Rs. 1,477 crore vs Rs. 1,682 crore) indicating demand pressure or pricing headwinds in core business / Increased employee costs burden of Rs. 920 lakh due to new Labour Codes implementation notified in November 2025, with potential for further impact under evaluation / Export revenue decline with Rest of World revenue at Rs. 1,276 crore for nine months versus Rs. 1,057 crore prior year showing volatility, while Q3 exports dropped to Rs. 357 crore from Rs. 563 crore YoY / Qualified audit opinion creates uncertainty for investors as auditors stated 'no conclusive evidence to ascertain impact' and are 'unable to comment on any adjustment that may be required'

9M standalone revenue grew to Rs 4,57,236 lakh from Rs 4,15,156 lakh (~10.1% YoY), showing healthy year-to-date demand despite Q3 softness. / Q3 standalone PAT increased to Rs 16,987 lakh from Rs 13,252 lakh (~28.2% YoY), and 9M PAT rose to Rs 49,239 lakh from Rs 32,154 lakh (~53.1% YoY). / Q3 PBT margin improved materially to ~15.5% (Rs 22,859 lakh on Rs 1,47,693 lakh revenue) versus ~10.8% in Q3 FY25. / Energy segment showed growth resilience: Q3 segment revenue rose to Rs 6,306 lakh from Rs 5,219 lakh (~20.8% YoY), with segment result up to Rs 970 lakh from Rs 870 lakh. / Leverage/interest burden appears controlled in reported results, with 9M finance costs reduced to Rs 400 lakh from Rs 674 lakh YoY and strong reported equity base (other equity Rs 5,20,822 lakh).

Auditors again issued a qualified review opinion tied to the ED/PMLA investigation and said they are unable to comment on adjustments pending regulatory/judicial outcome. / Core Q3 revenue decelerated: standalone revenue declined to Rs 1,47,693 lakh from Rs 1,68,190 lakh (~12.2% YoY) and from Rs 1,51,108 lakh QoQ (~2.3% decline). / Export weakness is visible in Agri geography: Q3 Rest-of-World revenue fell to Rs 35,702 lakh from Rs 56,297 lakh (~36.6% YoY), increasing dependence on domestic demand mix. / Profitability benefited from volatile inventory movement (Q3 inventory change Rs (46,171) lakh), which may not be equally supportive each quarter and can affect earnings predictability. / Regulatory and compliance cost risk persists: Rs 920 lakh increased gratuity obligation was booked due new labour codes, and management is still evaluating full impact.