KKVAPOW - KKV Agro Powers

📊 NSE: KKVAPOW 🏢 Trading 📅 Last Updated: 12/14/2025 8:56

💰 Financial Performance

Revenue Growth by Segment

Total revenue declined 38.1% YoY from INR 1,554.78 Cr to INR 962.23 Cr. Bullion trading revenue was INR 902.80 Cr (93.8% of total), Jewellery Retail was INR 51.79 Cr (5.4%), and Renewable Energy was INR 1.59 Cr (0.16%).

Geographic Revenue Split

Operations are concentrated in Tamil Nadu (Tirunelveli, Thoothukudi, Pollachi, Tirupur, Karur) and Andhra Pradesh (Anantapur), contributing 100% of revenue.

Profitability Margins

Net Profit Ratio improved 908.8% from 0.02% to 0.18%. Operating Profit Margin increased 563.3% from 0.0398% to 0.264%. Retail Jewellery exhibited the highest segment margin at 2.57%, while Bullion was razor-thin at 0.07%.

EBITDA Margin

Interest coverage ratio improved 49.3% YoY to 3.90x from 2.61x, indicating stronger core profitability relative to debt servicing obligations.

Capital Expenditure

Incremental capex is expected to be minimal as the company has no major debt-funded expansion plans; focus is on resuming the Purification Business at full capacity using existing infrastructure.

Credit Rating & Borrowing

Rating reaffirmed at [ICRA]BB+ (Stable) in February 2025. Borrowing costs are linked to a sanctioned fund-based working capital facility of INR 12.5 Cr with ~80% average utilization.

⚙️ Operational Drivers

Raw Materials

Bullion (Gold and Silver) represents over 99% of total procurement costs, with purchases totaling INR 904.18 Cr in FY2024-25.

Import Sources

Sourced primarily from domestic market participants and Group companies within Tamil Nadu and Andhra Pradesh.

Key Suppliers

The Chennai Silks Group companies are the primary suppliers and operational partners for bullion procurement.

Capacity Expansion

Current capacity includes 1 MW and 2 MW solar plants and multiple wind assets in TN and AP. Planned expansion focuses on resuming the Purification Business at full capacity.

Raw Material Costs

Raw material costs (purchases) for the bullion segment were INR 904.18 Cr, representing 94% of total revenue. Procurement strategies involve leveraging Group synergies to manage thin margins.

Manufacturing Efficiency

Renewable energy segment achieved steady plant load factors (PLF) despite seasonal variability; solar generation benefited from operational improvements.

Logistics & Distribution

Distribution and other operational costs in the energy segment were INR 14.48 lakhs, approximately 0.015% of total company revenue.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

Growth will be driven by resuming the Purification Business at full capacity and shifting focus toward the higher-margin Retail Jewellery segment (2.57% margin) to offset the razor-thin margins of the high-volume Bullion trading segment (0.07% margin).

Products & Services

Bullion (Gold/Silver), Retail Jewellery, Wind Power, and Solar Power.

Brand Portfolio

The Chennai Silks Group (Promoter Group brand).

New Products/Services

Resumption of the Purification Business is expected to provide new revenue streams in precious metal processing.

Market Expansion

Focusing on evolving customer preferences towards certified and sustainable sourcing in the precious metals segment.

Strategic Alliances

Operational synergies with The Chennai Silks Group for customer networks and management expertise.

🌍 External Factors

Industry Trends

The industry is seeing a policy push towards renewable energy and ESG consciousness, alongside a consumer shift towards less gold-intensive fashion jewellery.

Competitive Landscape

Intense competition from larger integrated renewable energy players and established bullion traders.

Competitive Moat

Moat is derived from the 50-year legacy of The Chennai Silks Group, providing established customer networks and cost leadership through scale in bullion trading.