Kingfa Science & Technology (India) Limited, a subsidiary company of M/s Kingfa Science & Technology Co. Ltd China, is engaged in the business of manufacturing and supply of high-quality modified plastic compounds for automotive and consumer products and personal protective equipments like masks and gloves.
Q2 FY26 Earnings Results
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Revenue from Operations: ₹465.69 crore, showing a modest sequential increase of 0.81% over Q1 FY26’s ₹461.93 crore and up 11.32% YoY from ₹416.44 crore in Q2 FY25.
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Operating Profit (PBDIT excluding other income): ₹60.60 crore, representing a margin of 13.01%, down 34 bps YoY indicating margin compression likely due to rising input costs or pricing pressures.
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Net Profit (PAT): ₹41.14 crore, marginally lower PAT margin of 8.83% compared to 8.91% YoY.
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Interest costs declined YoY to ₹0.83 crore from ₹1.34 crore, highlighting the company’s debt-free position which strengthens its financial stability.
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Operating cash flow generation rose significantly to ₹59 crore in FY25 indicating strong operational efficiency.
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Capital expenditure stood at ₹29 crore for FY25, underpinning measured capacity expansion aligned with market demand growth.
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The company has demonstrated sustained market share gains with five-year sales CAGR of 24.32% and EBIT CAGR of 64.76%, showcasing rapid growth and operational scale-up.
Management Commentary & Strategic Insights
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The management highlighted resilient revenue growth amid a challenging operating environment, maintaining competitive positioning in the industrial plastics sector.
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Despite margin pressure from input costs and competitive dynamics, the company retains robust capital efficiency with ROCE at 27.19% and strong EBIT-to-interest coverage of 20.05x.
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Recent reduction in promoter holding (down 7.97 percentage points in Q2) signals a change in ownership structure which investors are closely monitoring.
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The company is focusing on sustaining double-digit sales growth, margin management, and expanding R&D capabilities to foster innovative product development and green solutions.
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Working capital management and market conditions will be key factors influencing near-to-medium term momentum.
Q1 FY26 Earnings Results
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Revenue from Operations: ₹462 crore, up 11.06% YoY from ₹416 crore.
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Operating Profit (EBIT): ₹55.3 crore, marginally down 2.8% YoY reflecting cost inefficiencies.
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Net Profit (PAT): ₹39.8 crore, down 2.56% YoY, sustaining stable profitability in a demanding market.
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ROE of 23.4% and ROCE of 29.0% reflect high capital utilization and return generation.
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The company continues to invest in capacity, technology upgrades, and green materials in anticipation of demand recovery.
To view the company’s previous earnings and latest concall transcripts, click here to visit the Alphastreet India news channel.