Kasturi Metal Composite Limited has released its operational business update for the quarter ended September 30, 2026 (Q2 FY27). The update highlights key developments including progress on financial performance for the half-year, product-wise performance with a notable shift towards ‘Loop End’ products, orders on hand totaling ₹43.10 crore, and the upcoming commercial production at Plant IV in late November 2026. Durafloor is also proposing a UAE subsidiary.
Kasturi Metal Composite Limited: Q2 FY27 Operational Update
Kasturi Metal Composite Limited has submitted its operational business update for the quarter ended September 30, 2026 (Q2 FY27), in accordance with SEBI regulations. The report details the company’s operational progress and financial performance during the period.
Financial Performance and Key Metrics
For the half-year ended September 30, 2026, the company reported revenue from operations of ₹30.46 crore, a 4.9% decrease compared to the same period in FY2025-26. Group profit after tax stood at ₹1.20 crore, reflecting a Group PAT/revenue margin of 3.94%. This compares to a margin of 7.71% in the preceding half-year. The PBT for H1 FY26-27 was ₹1.62 crore, down from ₹3.72 crore in H1 FY25-26.
Input Costs and Sales Challenges
The company experienced input-cost pressure coinciding with lower conventional-fiber sales. Key factors include steelwool pricing revisions lagging material inflation (approximately 10% material inflation and 8.5% FG price recovery), conventional fibers facing wider pricing challenges with wire-rod inflation of about 20%, and selective order acceptance reducing dispatched volumes. Loop End growth provided a partial offset, with higher-value sales increasing.
Product Performance Shift Towards Loop End
Product performance shows a significant shift towards Loop End products. While Steelwool sales were ₹5.44 crore with a volume decrease of 2.6% and ASP increase of 9.0%, Loop End sales reached ₹2.11 crore with a negligible LY base and a substantial +207% ASP YoY growth. Glued fiber and Loose fiber sales saw significant volume decreases.
Loop End dispatches reached 166 MT, a substantial increase from 54 MT in the preceding half-year, representing a ~3.1x sequential volume increase. The company believes the demand for performance-based materials is strengthening.
Orders on Hand and Plant IV Expansion
Kasturi Metal Composite Limited reports a total of ₹43.10 crore in orders on hand. KMCL holds ₹19.15 crore, and Durafloor Concrete Solutions LLP holds ₹23.95 crore. Notable customers include Hero Moto Corp, Haier, and Lenskart.
Plant IV is targeted to commence commercial production in late November 2026. The facility will include wire drawing (trials complete) and glued and micro fiber production (line setup in progress), aiming for a stabilized capacity of 300 to 800 MT/month.
Durafloor UAE Subsidiary Proposal
Durafloor is adding execution capability with a proposed UAE subsidiary. Financial Due Diligence of the JV partner is complete, and SHA/MOA drafts are under discussion, with incorporation expected within 90 days post-SHA signing.
Forward-Looking Strategies
The company’s forward-looking strategies focus on PAT recovery through effective pricing, optimizing the product mix with Loop End growth translating into earnings, converting Plant IV’s installed capacity into profitable production, and ensuring execution of orders into revenue and cash within realistic schedules.
Source: BSE
