KAUSHALYA - Kaushalya Infra.

📊 NSE: KAUSHALYA 🏢 Hotels 📅 Last Updated: 12/14/2025 8:50

💰 Financial Performance

Revenue Growth by Segment

Standalone revenue for Q2 FY26 was INR 2.52 Lakhs, a 30.58% decrease from INR 3.63 Lakhs in Q2 FY25. The Construction segment contributed 100% of standalone revenue (INR 2.52 Lakhs), while the Hotel segment generated zero revenue. Consolidated revenue for the half-year ended September 30, 2025, was INR 5.83 Lakhs, down 55.8% from INR 13.19 Lakhs in the previous year's corresponding period.

Geographic Revenue Split

Not disclosed in available documents; however, the company is headquartered in Kolkata, West Bengal, and listed on Indian exchanges (BSE/NSE).

Profitability Margins

Standalone Net Profit Ratio for Q2 FY26 was -687.11%, significantly worsening from -249.51% in Q2 FY25. Return on Equity (ROE) was -0.51% and Return on Capital Employed (ROCE) was -0.32% for the quarter ended September 30, 2025.

EBITDA Margin

Core profitability remains negative; the Construction segment reported a loss of INR 16.67 Lakhs in Q2 FY26 compared to a loss of INR 18.83 Lakhs in Q2 FY25. The Hotel segment reported a loss of INR 0.98 Lakhs in Q2 FY26.

Capital Expenditure

Standalone Property, Plant and Equipment (PPE) was valued at INR 72.07 Lakhs as of September 30, 2025, a slight decrease from INR 73.35 Lakhs as of March 31, 2025, suggesting minimal new capital investment.

Credit Rating & Borrowing

The company faced finance costs of INR 69.81 Lakhs for FY25, up 13.46% from INR 61.53 Lakhs in FY24. Debt Equity Ratio stood at 0.25 as of September 30, 2025.

⚙️ Operational Drivers

Raw Materials

Construction materials (unspecified types) accounted for INR 0.17 Lakhs in Q2 FY26, representing 6.7% of standalone revenue.

Capacity Expansion

Current operations are focused on infrastructure and hotel segments; however, specific capacity metrics in MT or units are not disclosed.

Raw Material Costs

Cost of materials consumed was INR 0.17 Lakhs in Q2 FY26. For the full year FY25, total expenditure was INR 177.66 Lakhs, a 43.9% decrease from INR 316.98 Lakhs in FY24, reflecting reduced operational scale.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

The company aims to achieve growth through the resolution of legal disputes to unlock liquidity, maintaining high standards of corporate governance to attract investors, and leveraging its ISO 9001-2008 certification to secure infrastructure projects. It also maintains a diversified leadership team to navigate complex regulatory environments.

Products & Services

Infrastructure development services, construction of civil engineering projects, and hotel/hospitality services.

Brand Portfolio

Kaushalya Infrastructure Development Corporation Limited.

Strategic Alliances

The company operates through subsidiaries (Bengal KDC Housing Development Ltd, KDC Nirman Ltd) and associates (Kaushalya Nirman Pvt Ltd, Kaushalya Township Pvt Ltd, Orion Abasaan Pvt Ltd). The KIDCO NACC Consortium JV is currently discontinued.

🌍 External Factors

Industry Trends

The infrastructure and real estate industry is facing a tightening credit environment from banks. Kaushalya is positioning itself by focusing on 'out-of-court settlements' to resolve long-standing disputes that tie up critical funds.

Competitive Landscape

Operates in the competitive Indian infrastructure and construction sector, competing with both regional and national players for government and private contracts.

Competitive Moat

The company's moat includes its ISO 9001-2008 certification and a diversified board with experience in government and non-government organizations. Sustainability is challenged by accumulated losses and high litigation dependency.

Macro Economic Sensitivity

Highly sensitive to real estate lending policies and general economic conditions affecting infrastructure spending.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to SEBI (LODR) Regulations 2015, Ind AS accounting standards, and real estate/construction regulatory frameworks.

Taxation Policy Impact

No provision for current taxes was required for Q2 FY26 due to accumulated losses and unabsorbed depreciation exceeding taxable income under normal Income Tax Act provisions.

Legal Contingencies

The company is involved in ongoing litigation and is actively pursuing out-of-court settlements. A significant past event was the settlement of a loan with Indian Overseas Bank (IOB) in FY24, which resulted in a one-time gain that previously inflated profits.

⚠️ Risk Analysis

Key Uncertainties

Litigation outcomes and industrial relations pose significant risks to financial stability. Liquidity risk is high, with total income dropping from INR 1,664.37 Lakhs in FY24 to just INR 32.63 Lakhs in FY25 (a 98% decrease).