1. At a Glance
Welcome to the wildest turnaround story on Dalal Street, starring Kothari Industrial Corporation Ltd (KICL) — the 55-year-old Chennai veteran that went from fertilizers to FMCG, then to drones, and even hotels, because why not?
As of November 21, 2025, KICL trades at ₹436 with a market cap of ₹4,665 crore — a valuation that would make even Coromandel blush. The Q2FY26 results show sales of ₹49.5 crore (up a fiery 128% YoY) and a loss of ₹6.56 crore, because old habits die hard. The stock has skyrocketed 710% in one year, proving once again that the Indian market sometimes loves chaos more than cash flow.
Book value stands at ₹25.4, meaning the stock trades at 17.2x book, or as auditors call it, “the audacity multiple.” Debt has shrunk to ₹11.7 crore, interest coverage is negative, ROE is -17.2%, and the company’s balance sheet now looks like a comedian’s punchline — dramatic but oddly loveable.
So what’s driving a near-dead fertilizer firm to ₹4,600+ crore valuations? A mix of asset sales, capital reduction, drone dreams, and, of course, Chennai optimism.
2. Introduction
Let’s rewind. In the 1970s, Kothari Industrial was the fertilizer darling of Tamil Nadu, producing Single Super Phosphate (SSP) at its Ennore plant. Fast-forward to FY21 — production stopped because raw materials became scarce and cash became a myth. The company then did what any tired manufacturer would do — it leased its plant to Coromandel International and said, “Bro, you do the hard work; we’ll collect the rent.”
But Kothari didn’t stop there. When the fertilizer dust settled, they decided to go all-in on FMCG, healthcare, drones, and hotels. That’s right — from phosphate to pastries to propellers. Somewhere, even their CA probably had to Google “how to value a drone business started by a fertilizer company.”
This isn’t just diversification; it’s financial freestyle. FY23 saw debt repayment of ₹72 crore, a capital reduction scheme approved by NCLT, and a glorious return to the market spotlight. Investors noticed, and suddenly, KICL’s share price flew faster than one of its drones — from ₹55 to ₹625 in under a year.
The irony? Despite all the buzz, the company still reported losses in FY25 and Q2FY26, reminding everyone that story stocks are like Indian TV serials — entertaining, emotional, and occasionally illogical.
3. Business Model – WTF Do They Even Do?
KICL’s business model today can be described in one sentence: “Everything, everywhere, all at once.”
Originally, Kothari made fertilizers — specifically Single Super Phosphate (SSP) — at its Ennore plant. But after raw material shortages and a lack of working capital, it shut operations and leased the plant to Coromandel International for five years starting FY21.
Then came the great pivot. The company launched an FMCG and healthcare vertical selling rusk, cookies, sanitizers, and masks. When that wasn’t exciting enough, they added hotel operations and, most
recently, drone manufacturing and marketing.
If that sounds random, well, it is. But somehow, it worked — revenue in FY25 jumped to ₹87 crore from just ₹14 crore in FY24.
The segment mix now reads like a confused résumé:
- Fertilizers: 31%
- FMCG Products: 32%
- Hotels: 22%
- Drones: 14%
- Rental Income: 1%
So yes, KICL is technically a fertilizer company that rents its plant, sells cookies, runs a hotel, and makes drones. Somewhere, Reliance must be watching this diversification with respect.
4. Financials Overview
| Metric (₹ Cr) | Q2FY26 | Q2FY25 | Q1FY26 | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 49.5 | 21.7 | 39.2 | 128% ↑ | 26% ↑ |
| EBITDA | -4.99 | 0.46 | -0.47 | -1,184% ↓ | 959% ↓ |
| PAT | -6.56 | 0.09 | -1.92 | -7,389% ↓ | 242% ↓ |
| EPS (₹) | -0.61 | 0.02 | -0.20 | — | — |
Commentary:
The revenue explosion looks great until you check the bottom line. It’s like getting promoted and then realizing HR forgot to increase your salary. Operating margins flipped back to red (-10%), and PAT slipped into a deeper loss. But hey, sales are up 128%, so the market threw a party anyway.
5. Valuation Discussion – Fair Value Range
Let’s calculate a fun but factual valuation range (for educational purposes only).
- Market Cap: ₹4,665 Cr
- PAT (TTM): -₹16.2 Cr
- EPS (TTM): -₹1.74 (P/E not meaningful)
- EBITDA (FY25): -₹14 Cr
- EV: ₹4,640 Cr
1️⃣ EV/EBITDA method:
Even with negative EBITDA, assuming a turnaround to ₹30 Cr EBITDA (conservative), fair EV = 10x–12x = ₹300–₹360 Cr → Implied Value per share ≈ ₹28–₹35.
2️⃣ P/E method:
Given losses, P/E can’t be applied. Theoretical fair range if PAT normalizes to ₹20 Cr → EPS ~₹2 → 25–30x range → ₹50–₹60 per share.
3️⃣ DCF:
If revenue grows 25% YoY and OPM stabilizes at 10%, intrinsic value could fall between ₹40–₹80.
✅ Educational Fair Value Range: ₹30 – ₹80 per share.
(Disclaimer: This range is purely educational and not investment advice.)
6. What’s Cooking – News, Triggers, Drama
Ah, where do we start?
- Phoenix Footwear Deal: In September 2025, KICL acquired 30% of Phoenix Kothari Footwear Pvt. Ltd. for ₹99.06 crore. Because apparently, drones weren’t enough.
- TDS Trouble: The
