Lykis Q4 FY26: Revenue Jumps 137%, PAT Turns Positive, But Debt Also Walks In Wearing Heavy Boots
1. At a Glance
Lykis is not a clean, simple FMCG story. It is a smallcap trading-and-export company with brands, private labelling, subsidiaries, open-offer drama, promoter change, weak margins, heavy working-capital movement, and a balance sheet that suddenly became much larger in FY26.
That combination deserves attention.
In Q4 FY26, consolidated revenue rose to ₹145.40 crore from ₹61.44 crore in Q4 FY25. Net profit moved from a loss of ₹0.69 crore to a profit of ₹1.95 crore. On paper, that is a dramatic turnaround.
But the detective must not clap too early.
Operating margin in Q4 FY26 was only 2.69%. Full-year FY26 sales were ₹393 crore, but net profit was only ₹6 crore. This is a business where big revenue walks in through the front door, but profit escapes through the bathroom window.
The stock trades at ₹49, with market cap near ₹95 crore. Based on FY26 EPS of ₹3.34, the recalculated P/E is:
₹49 / ₹3.34 = 14.67x
The interesting part is not only the P/E. It is the sudden expansion in borrowings. Consolidated borrowings rose from ₹43 crore in FY25 to ₹107 crore in FY26. Total assets rose from ₹91 crore to ₹190 crore. Trade receivables, inventories, and other assets expanded sharply. Cash flow from operations was negative ₹32 crore in FY26.
So the headline says growth. The cash flow says: “Please check the back room.”
2. Introduction
Lykis Ltd was incorporated in 1984 and operates in FMCG, personal care, cosmetics, food, soaps, fragrances, baby care, oral care, hair care, skin care, and related trading/export activities.
The company says it supports private labelling in domestic markets and over 40 countries. Its brands include Lykis, Monami, Mellar, Rox, Bon Fami, H & H, Calmon, Special, and Bonita.
The business has also gone through structural changes. The tea business was sold in 2021 for ₹10.41 crore. The company altered its objects to include a wider range of trading and export activities. It also moved towards Mumbai as its registered office base.
FY26 also brought major ownership drama. The promoter entered into a share purchase agreement dated December 18, 2025 with Parshav Vatika LLP and others to sell 67.17% stake. An open offer was made for 26% equity at ₹34.50 per share.
That means Lykis is not just reporting results. It is changing hands.
The company also disposed its investments in Lykis Biscuits Private Limited and Lykis Packaging Private Limited during FY26. It also disposed investment in Lykis Herbals Private Limited. The board approved sale of all company trademarks in September 2025, and the trademark was classified as asset held for sale.
For a smallcap investor, this is not a lazy Sunday stock. This is a file with many tabs open.
3. Business Model – What Do They Even Do?
Lykis sells and exports FMCG and personal care products.
The product basket includes biscuits, cookies, confectionery, commodities, OTC products, skincare, haircare, oral care, soaps, fragrances, and baby care products.
In simple words: Lykis is not exactly Hindustan Unilever. It is more like a trading/export FMCG platform trying to push multiple products across geographies, brands, and private-label arrangements.
The company operates through subsidiaries including Goldspan Exports Private Limited, formerly Lykis Marketing Private Limited, and Lykis Exports LLC, UAE. The consolidated auditor noted that these subsidiaries contributed assets of ₹50.22 crore, revenue of ₹129.85 crore for FY26, and profit after tax of ₹2.75 crore.
That subsidiary contribution matters because consolidated FY26 profit was ₹6.47 crore. So the group structure is important.
The business is high-volume, low-margin. FY26 sales were ₹393 crore, but operating profit was only ₹10 crore. That is a 2% operating margin.
This is like running a shop where trucks come and go all day, but at night the cash drawer still looks suspiciously slim.
4. Financials Overview
Result type is locked as Quarterly Results, because the official filing states results for the quarter and year ended March 31, 2026.
Since this is Q4, annualisation is not used. FY26 EPS of ₹3.34 is used.
Metric
Latest Quarter Q4 FY26
Same Quarter Last Year Q4 FY25
Previous Quarter Q3 FY26
Revenue
₹145.40 cr
₹61.44 cr
₹90.61 cr
EBITDA / Operating Profit
₹3.91 cr
₹0.03 cr
₹2.73 cr
PAT
₹1.95 cr
-₹0.69 cr
₹1.98 cr
EPS
₹1.01
-₹0.36
₹1.02
Q4 revenue jumped 137% year-on-year. PAT improved from loss to profit. But sequentially, profit was almost flat despite revenue rising from ₹90.61 crore to ₹145.40 crore.
That means extra sales did not convert strongly into extra profit.
The annual picture is also revealing:
Metric
FY24
FY25
FY26
Sales
₹404 cr
₹297 cr
₹393 cr
Operating Profit
₹10 cr
₹8 cr
₹10 cr
Net Profit
₹4 cr
₹3 cr
₹6 cr
EPS
₹2.00
₹1.35
₹3.34
FY26 profit improved, but operating profit is still only back near FY24 level. Revenue recovered, but margin remains thin.
Question for readers: is this a turnaround, or simply a working-capital-heavy trading rebound?
5. Valuation Discussion – Fair Value Range Only
Method 1: P/E Method
Current price: ₹49 FY26 EPS: ₹3.34
Recalculated P/E:
₹49 / ₹3.34 = 14.67x
Given Lykis has low margins, high debt, volatile cash flow, and smallcap governance complexity, using a broad educational P/E band of 10x–16x FY26 EPS gives:
