Kamdhenu Limited Completes Rs 5.04 Crore Warrant Subscription Payment to Kamdhenu Ventures Limited

Kamdhenu Limited has completed a significant warrant subscription payment of Rs 5.03 crore to Kamdhenu Ventures Limited (KVL) as part of a larger investment agreement. The payment represents the mandatory 25% upfront amount required under SEBI regulations for warrant subscriptions.

Investment Structure and Payment Details

The warrant subscription forms part of a comprehensive investment totaling Rs 20.15 crore. Under this arrangement, Kamdhenu Limited will subscribe to 2.96 crore warrants, each convertible into equivalent equity shares at an issue price of Rs 6.80 per warrant.

Investment Parameter: Details Total Warrants: 2,96,45,000 Issue Price per Warrant: Rs 6.80 Total Investment Amount: Rs 20,15,86,000 Upfront Payment (25%): Rs 5,03,96,500 Payment Status: Completed

Regulatory Compliance Framework

The payment structure adheres to SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, which mandates a 25% upfront payment upon warrant allotment. The transaction was conducted under Regulation 30 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015.

Kamdhenu Limited initially disclosed this investment plan on February 13, 2026, providing comprehensive details as required under SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026.

Next Steps and Warrant Allotment

Following the payment completion, KVL will proceed with the formal issuance and allotment of 2.96 crore warrants to Kamdhenu Limited. The warrants provide the company with the option to convert them into equivalent equity shares of KVL at the predetermined price of Rs 6.80 per share.

The company has formally notified both NSE and BSE about this payment completion, ensuring full regulatory compliance and transparency in its investment activities. This strategic investment in KVL represents Kamdhenu Limited's continued expansion and diversification efforts within the group structure.

Kamdhenu Limited delivered exceptional profitability in Q3FY26, with net profit after tax surging 67% year-on-year to ₹20.8 crore despite a marginal revenue decline. The TMT bar manufacturer achieved record profit before tax margins of 15.9%, expanding by 620 basis points, driven by strong franchise performance and operational efficiency improvements.

Outstanding Q3FY26 Financial Performance

The company's quarterly results for the period ended December 31, 2025, demonstrated remarkable profit growth despite revenue headwinds. Key financial highlights include:

Metric: Q3FY26 Q3FY25 Change (%) Revenue from Operations: ₹168.8 crore ₹175.0 crore -3% Profit Before Tax: ₹26.8 crore ₹16.9 crore +58% Net Profit After Tax: ₹20.8 crore ₹12.5 crore +67% PBT Margin: 15.9% 9.7% +620 bps

The significant improvement in profitability was achieved despite a 3% decline in revenue, primarily attributed to metal price fluctuations and implementation of GRAP Stage III and IV measures in the NCR region affecting own facility volumes.

Strong Nine-Month Performance Trajectory

For the nine months ended December 31, 2025, Kamdhenu Limited maintained robust growth momentum across key profitability metrics:

Parameter: 9M FY26 9M FY25 Growth (%) Revenue from Operations: ₹555.8 crore ₹549.7 crore +1% Profit Before Tax: ₹81.2 crore ₹57.9 crore +40% Net Profit After Tax: ₹60.9 crore ₹43.8 crore +39% PBT Margin: 14.6% 10.5% +410 bps

Franchise Business Drives Growth

The company's asset-light franchise model continued to deliver strong results, with franchise volumes growing 18% year-on-year to 9.7 lakh MT in Q3FY26. This growth translated into record royalty income performance:

Business Segment: Q3FY26 Q3FY25 Change (%) Revenue from Own Facilities: ₹125.6 crore ₹141.4 crore -11% Volume from Own Facilities: 28.1 thousand MT 28.3 thousand MT -1% Revenue from Royalty Income: ₹43.0 crore ₹33.4 crore +29% Franchise Volumes: 9.7 lakh MT 8.3 lakh MT +18%

For the nine-month period, franchise volumes increased 11% to 27.7 lakh MT, while royalty income grew 28% to ₹128.9 crore, reflecting deeper brand penetration and improved partner throughput.

Management Commentary on Performance

Chairman & Managing Director Satish Kumar Agarwal highlighted the company's ability to deliver strong profitability despite TMT bar price volatility. He emphasized that royalty income remains a highly capital-efficient and RoCE accretive business, allowing scalability without incremental manufacturing investments. The management noted that own manufacturing facilities are operating at near peak utilization, making the asset-light franchise route the strategic priority for expansion.

Strategic Focus and Outlook

The company continues to evaluate investments in selective franchise partners to increase capacities where demand visibility is strong and regional presence can be strengthened. With expected revival in government and private capex and continued policy thrust on infrastructure, management remains confident of maintaining strong demand momentum in the TMT bar segment while delivering consistent, profitable growth.

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