Author: Nishtha Mehrotra | EQMint
Synopsis:
- Kay Power and Paper reported a 44% YoY increase in Q2 FY27 revenue to ₹10.96 crore.
- Net profit surged to ₹37.74 lakh from ₹1.96 lakh in the corresponding quarter last year.
- Higher revenue supported profitability, while rising raw material costs and an expanded equity base remain key factors to monitor.
Kay Power and Paper Ltd reported a sharp improvement in its financial performance for Q2 FY27, with revenue from operations rising 43.7% year-on-year to ₹10.96 crore, compared with ₹7.63 crore in Q2 FY26.
Total income increased 44% to ₹10.98 crore, while profit after tax surged to ₹37.74 lakh from ₹1.96 lakh in the year-ago quarter, marking a nearly 19-fold increase.
Total expenses stood at ₹10.60 crore, up 39.4% year-on-year, growing slower than revenue and supporting the improvement in profitability.
Sequentially, revenue from operations jumped 86% from ₹5.89 crore in Q1 FY27, while net profit increased 181% from ₹13.42 lakh. The latest quarter also reported no exceptional gains, unlike Q1 FY27, which included a ₹5.35 lakh gain from the sale of land.
For the first half of FY27, revenue from operations increased 14.3% to ₹16.85 crore, compared with ₹14.74 crore in H1 FY26. Profit after tax rose to ₹51.16 lakh from ₹3.17 lakh.
However, raw material costs accounted for approximately 63% of Q2 revenue, higher than the 57% recorded in the previous quarter. The company’s paid-up equity capital also increased 58% year-on-year to ₹34.94 crore, indicating a significantly expanded share base.
With revenue momentum improving and profitability strengthening, the sustainability of the latest growth, raw material cost trends and future equity issuance will remain important factors to watch.
Source: https://sqst.in/JmXqh
Disclaimer: This article is for information purposes only and is not investment advice.
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