Kingfa Science FY2026: Profit Surged 52%, Multiple Still Hasn’t Caught Up

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1. At a Glance

Revenue landed at ₹1,996 Cr for the full year, a jump of 14% year-on-year. Net profit more dramatic: up 52% to ₹185 Cr, as the company tamed input costs and wrote slightly less waste. Earnings per share climbed to ₹137 from ₹101 the prior year.

The stock sits at 36x earnings — above its own five-year average of 32x, yet still below the peer median of 38-40x for comparable players. Most of that multiple compression came in Q4 alone, where a ₹81 Cr net profit punch dwarfed expectations and raised the full-year EPS by one-third.

Here’s the tension: a 1,000+ basis point margin tighten won’t be easy to replicate. And export orders, the company’s new growth bet, remain thin at just 8% of sales.

2. Introduction

Kingfa Science & Technology (India) manufactures high-performance polymer compounds—the modified thermoplastic resins that automotive parts, consumer goods, and protective equipment are increasingly made from. It’s a subsidiary of China’s Kingfa Science & Technology.

The company went public in the current fiscal year via a preferential allotment in September 2025, raising ₹500 Cr by issuing 1.44 Cr shares at ₹3,470 per share. That blast of capital shows up in the balance sheet immediately: cash surged to ₹1,356 Cr, and net cash (after eliminating the ₹15 Cr in borrowings left on the books) sits at ₹1,341 Cr.

The parent thinned its stake from 75% to 67% in the process. DII funds piled in: 8.85% holding appeared post-allotment. Shares outstanding jumped from 121 Cr to 136 Cr.

3. Business Model: WTF Do They Even Do?

Kingfa sells four product families: reinforced polypropylene compounds for automotive; thermoplastics elastomers for consumer durables; flame-retardant engineering plastics for electric vehicle components; and contract manufacturing of personal protective equipment (masks, gloves).

Domestic sales (92% of mix) come mainly from OEM relationships with auto parts suppliers and appliance makers—think the engineering-grade plastics for door handles, fuel tanks, interior trim, battery housings.

Export revenue jumped to 8% of sales in FY26, a six-fold increase from near-zero two years ago. Entry markets: South Africa, Thailand. The company has manufacturing footprints in Pune (Chakan), Puducherry, and Manesar, plus regional warehouses. It operates 100,000-110,000 MTPA of installed capacity.

R&D teeth are real: a dedicated lab in Pune, nine dedicated R&D lines on the shop floor, and the company won its first patent for an exhalation-valve design in respiratory masks. A new CEO took the helm in August 2024 (Wang Dazhong), signalling fresh product direction toward non-auto segments—electrical, power tools, appliances, batteries. Three new compounding lines went live at Chakan in FY24.

The business is a margin-builder. OPM widened from 8% in FY22 to 13% in FY26—not because of genius, but because raw material inflation has finally cooled and the company now runs cleaner operations. Input costs (raw materials) dropped as a percentage of sales.

4. Financials Overview

Figures are consolidated, in ₹ crore.

The quarterly pattern tells the real story. Q1-Q3 FY26 showed steady-state profitability—₹41-₹40 Cr per quarter. Then Q4 exploded: ₹59 Cr net profit on ₹578 Cr revenue. That ₹59 Cr quarter alone accounts for 32% of the annual profit.

Why the Q4 spike? The audit report reveals the company realized one-time gains: forex gains of ₹1,388 lakhs (nearly ₹14 Cr) on strengthening in the rupee, which didn’t repeat in Q1-Q3. Strip that out and normalized profit would be closer to ₹171 Cr. The bump in export orders and the full-quarter benefit of new capacity also contributed.

Operating margins: 13% average for the year. Interest costs plummeted to ₹4 Cr (from ₹8 Cr three years