Cosmo Ferrites FY26: A ₹901 Lakh EBITDA, a Fifth Loss in Six Years, and an Anti-Dumping Duty Doing the Heavy Lifting

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1 — At a Glance

Cosmo Ferrites closed FY26 with sales of ₹98.59 crore, up 15% from ₹85.66 crore the year before, and a net loss of ₹1.58 crore — narrower than FY25’s ₹5.65 crore loss, but a loss all the same. That makes five annual losses in the last six years, with the lone exception being FY22’s ₹14.23 crore profit spike.

The March 2026 quarter carried the good news: revenue of ₹27.19 crore, operating profit of ₹2.55 crore, and a positive PAT of ₹0.26 crore against a ₹1.55 crore loss in the same quarter a year earlier. Operating margin for the quarter reached 9.38%, the highest in eight quarters.

Then the worry signals. Borrowings sit at ₹69.33 crore against a net worth of ₹23.13 crore — a debt-to-equity of 3.00. Interest coverage is 0.71. Promoters conditionally waived ₹88 lakh of interest on their own unsecured loans for the second half of FY26, mirroring a ₹144 lakh waiver the year prior. The March 2025 anti-dumping duty on Chinese soft ferrite cores is the event the whole story now leans on.

A company that turned one profitable quarter after a run of red ones. The question is whether the quarter is the trend or the exception.

2 — Introduction

Cosmo Ferrites Limited was incorporated in 1986 and manufactures Mn-Zn based soft ferrite cores — the small magnetic components buried inside power supplies, chargers, and transformers. It is part of the Cosmo group, founded in 1981 by Ashok Jaipuria, whose better-known entity is Cosmo First Limited, the packaging films business. CFL operates a single manufacturing facility at Jabli, Solan district, Himachal Pradesh, with an installed capacity of 3,900 tons of ferrite components and 3,600 tons of ferrite powder.

The FY26 story has one dominant thread. On March 18, 2025, the Ministry of Finance imposed an anti-dumping duty of up to 35% on imported soft ferrite cores from China, effective five years. This is the single most-cited driver across the company’s own filings and its credit rating file — the moderation in FY25 performance was attributed to dumping of low-priced material from the neighbouring country, and the duty is the stated basis for expecting improvement.

The management scaffolding shifted through the year. Business Head Nikit Chaudhary resigned in December 2025, with CFO Sanjay Gupta taking the interim role. In June 2026, General Manager Sanjeev Katoch tendered his resignation as Plant Operations Manager. And CFL leans on a service agreement with Cosmo First for business strategy, marketing, corporate finance, and investor relations — a parent doing a fair amount of the thinking.

3 — Business Model: WTF Do They Even Do?

They make the invisible bits. When your phone charger works, a soft ferrite core somewhere inside is quietly shuttling magnetic flux at high frequency without turning into a small toaster. Cosmo makes those cores in an alphabet soup of shapes — EE, EC, ETD, EER, UU, PQ, Pot, Planar, Toroid, I-Bar — sizes ranging from 5 mm to 202 mm, plus the pre-calcined ferrite powder that feeds them.

The end markets read like a tour of everything with a plug: automotive sensors and antennas, solar inverters, LED lighting, medical power supplies, EMI filters, and — the segment management keeps circling — EV battery chargers and wireless charging. The clientele includes Havells, Philips, Bosch, ABB, and Bharat Electronics.

Roughly 46% of sales go to export markets across Europe, North America, and Asia; the rest is domestic. That export tilt is the model’s blessing and its exposure — it earns foreign currency but rides Europe’s inventory cycles, and per the rating file, subdued European demand from inventory corrections and recession pressure hit the higher-margin export sales specifically.

Here is the structural puzzle the model presents. This is a company built on a genuinely useful product with a decorated customer list, three-plus decades of operating history, and ISO-and-IATF certifications stacked to the ceiling — and it has still lost money in five of the last six years. A great product does not automatically make a great income statement; somewhere between the kiln and the bottom line, the economics keep leaking.

Does a 35% wall against Chinese imports fix a business model, or just buy it time to fix itself?

4 — Financials Overview

Figures are standalone, in ₹ crore.

The March quarter is the strongest single column in two years. Revenue rose 40% year-on-year and 42% sequentially; operating profit swung from roughly breakeven a year ago to ₹2.55 crore; and