KHAITANLTD - Khaitan (India)

📊 NSE: KHAITANLTD 🏢 Trading 📅 Last Updated: 12/14/2025 8:54

💰 Financial Performance

Revenue Growth by Segment

Electrical Goods revenue grew 41.1% YoY to INR 48.04 Cr in H1 FY26 from INR 34.05 Cr. Agriculture revenue grew 87.5% YoY to INR 0.20 Cr from INR 0.11 Cr. Sugar segment remains non-operational with 0% revenue contribution.

Profitability Margins

Operating Profit Margin improved to 11.34% in FY25 from 5.23% in FY24 (+117% change). Net Profit Margin rose to 9.71% in FY25 from 2.62% in FY24 (+270% change). Return on Net Worth (RONW) increased to 26.03% from 6.62% (+293% change).

EBITDA Margin

Operating Profit Margin stood at 11.34% in FY25, a 117% increase from 5.23% in FY24, driven by cost optimization and a better sales mix in the electrical goods trading division.

Credit Rating & Borrowing

Finance costs for H1 FY26 decreased 35.2% YoY to INR 0.84 Cr from INR 1.30 Cr, indicating reduced borrowing costs or debt levels.

⚙️ Operational Drivers

Raw Materials

Metals and polymers are identified as key inputs for the electrical goods division, though specific percentage of total cost for each is not disclosed.

Capacity Expansion

Current installed capacity is not disclosed. Planned expansion includes the incorporation of two new subsidiaries: Khaitan Strategy Limited and Khaitan Fans and Appliances Limited in November 2025.

Raw Material Costs

Raw material costs are sensitive to metal and polymer price fluctuations. Procurement strategies focus on tighter cost control and better inventory management to protect margins.

Manufacturing Efficiency

Focus is on supply chain efficiency and product innovation to mitigate pricing power risks from low-cost imports.

📈 Strategic Growth

Expected Growth Rate

35%

Growth Strategy

Growth will be achieved by expanding the electrical goods product portfolio, widening the distribution network into new geographical areas, and leveraging digital platforms. The company is also conducting feasibility studies to restart sugar and agriculture operations with a focus on ethanol-based opportunities.

Products & Services

Electrical goods (fans and appliances), sugar, and agricultural products.

Brand Portfolio

Khaitan

New Products/Services

New product launches are planned in energy-efficient and smart product categories to prevent stock obsolescence and capture higher-margin segments.

Market Expansion

Expansion into new geographical areas and widening the distribution network for electrical goods is a core strategy for FY26.

🌍 External Factors

Industry Trends

The industry is shifting toward energy-efficient and smart products. Regulatory support for ethanol is creating a revival path for the sugar sector. The electrical goods sector remains highly competitive with a mix of organized and unorganized players.

Competitive Landscape

Intense competition from established players, unorganized local manufacturers, and low-cost imports.

Competitive Moat

The company leverages its established 'Khaitan' brand name and a diversified portfolio across three sectors. Sustainability depends on successful product innovation in the electrical segment and the revival of the sugar/agri divisions.

Macro Economic Sensitivity

GDP growth is expected to be 6.3%-6.8% in FY26. The company is sensitive to US export tariffs and global commodity price volatility.

Consumer Behavior

Shift toward energy-efficient and smart home appliances is driving product development cycles.

Geopolitical Risks

Higher tariffs imposed by the United States pose challenges for exports and could impact the growth trajectory of the electrical goods division.

⚖️ Regulatory & Governance

Industry Regulations

Stricter product standards and energy-efficiency norms for electrical goods necessitate operational adjustments and risk inventory write-downs.

Environmental Compliance

Revival of the sugar segment is aligned with government policy support for ethanol, which is an environmentally focused initiative.

Legal Contingencies

The company faces outstanding statutory dues and ongoing GST-related disputes. A modified audit opinion exists regarding the sugar mill, which the auditor believes should be classified as 'Discontinued Operations' rather than 'Continuing Operations'.

⚠️ Risk Analysis

Key Uncertainties

Suspension of sugar and agriculture operations remains a major uncertainty, with revival dependent on government policy and capital investment. Potential impact of adverse GST dispute rulings is not quantified.