💰 Financial Performance

Revenue Growth by Segment

Standalone revenue from operations grew 18.75% YoY, increasing from INR 131.16 Cr in FY24 to INR 155.75 Cr in FY25. Segment-specific growth percentages are not disclosed in available documents.

Profitability Margins

Operating Profit Margin improved significantly from Nil in FY24 to 10.02% in FY25. Net Profit Margin increased from 1.14% to 9.41% over the same period, driven by higher sales volumes and operational efficiency.

EBITDA Margin

Operating Profit Margin stood at 10.02% in FY25, a substantial recovery from Nil in the previous year. Core profitability was bolstered by a 551% increase in PBT to INR 19.29 Cr.

Capital Expenditure

The company has no debt-funded capital expenditure plans over the medium term. It maintains a healthy financial risk profile with a networth of INR 212.77 Cr as of March 31, 2025.

Credit Rating & Borrowing

Credit rating reaffirmed at 'CRISIL BBB-/Stable' in November 2025. The company has nil debt (Adjusted debt/networth of 0.00) and recently availed a working capital facility of INR 25 Cr, utilized under 50%.

⚙️ Operational Drivers

Raw Materials

Gum Turpentine is the primary raw material, accounting for the majority of raw material costs.

Import Sources

Indonesia, Vietnam, Sri Lanka, and China.

Capacity Expansion

Industry-wide capacity expansion is occurring, leading to increased supply and intensified competition; however, KKL's specific current or planned MTPA is not disclosed.

Raw Material Costs

Foreign exchange utilized for raw material purchases was INR 95.26 Cr in FY25. Procurement is strategic, based on available financial resources and price risk management.

Manufacturing Efficiency

Fixed Assets Turnover Ratio was 2.24 in FY25 compared to 2.51 in FY24. Operational efficiency improved due to higher sales volumes.

📈 Strategic Growth

Growth Strategy

Growth will be achieved by focusing on high-quality manufacturing standards and regulatory compliance (ISO 9001:2015) to serve regulated sectors like pharmaceuticals and food-grade products. Internal efforts include streamlining operations and optimizing raw material sourcing.

Products & Services

Camphor and its by-products: Dipentene, Sodium Acetate Trihydrate, and Pine Tar.

Market Expansion

The company aims to broaden product segments to tap into new customer segments, particularly in regulated sectors.

Market Share & Ranking

KKL is one of the leading and larger players in the Indian camphor market.

🌍 External Factors

Industry Trends

The industry is seeing capacity expansions by multiple players, which is increasing supply and moderating realizations. Market conditions are currently considered favorable for larger players.

Competitive Landscape

Highly competitive environment with several domestic players and significant pressure from low-cost Chinese imports.

Competitive Moat

Durable advantages include four decades of promoter experience, established relationships with suppliers and customers, and a strong position in the Indian camphor market.

Macro Economic Sensitivity

Sensitive to global economic conditions and government policies regarding imports and dumping.

Geopolitical Risks

Intense competition from foreign players, especially from China, and susceptibility to dumping practices.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with Central, State, and local authority regulations is mandatory; the company is ISO 9001:2015 certified.

Taxation Policy Impact

Effective tax rate of approximately 26.2% based on a tax provision of INR 5.05 Cr on PBT of INR 19.29 Cr in FY25.

⚠️ Risk Analysis

Key Uncertainties

Volatility in Gum Turpentine prices (primary raw material) and intense competition from Chinese imports are the primary business risks.

Geographic Concentration Risk

High dependency on raw material imports from Indonesia, Vietnam, Sri Lanka, and China.

Credit & Counterparty Risk

Debtors Turnover Ratio improved to 11.73 in FY25 from 8.63 in FY24, indicating healthy receivables quality.