KN Agri Resources Ltd Q2 FY26 – From Soya to Power Play: The Desi Agri Giant’s Half-Yearly Masala Mix
1. At a Glance
Imagine a soybean, crushed, refined, exported, and finally lighting up your house through a windmill — welcome to the glamorous world of KN Agri Resources Ltd (KNARL). The company closed at ₹206 on November 25, 2025, giving it a market cap of ₹516 crore. Over the last one year, the stock has tumbled -23.8%, which means the “seed capital” of many retail investors has literally turned into “soya husk.”
But behind this edible oil drama lies a ₹1,791 crore revenue machine, generating a ₹36.7 crore profit with a P/E of 14x and ROCE of 14.8%. The margins are slimmer than a Patanjali biscuit at just 3.31%, but hey, it’s an edible oil company — not a SaaS startup.
And the cherry on the khichdi? The company has four windmills, a touch of ethanol, and a whole lot of ambition — recently getting NSE approval to migrate from SME to Main Board (Nov 2025). Because nothing says “we’ve arrived” like moving to the main market while your profits are flat.
2. Introduction
Let’s be honest — agri stocks rarely trend unless someone tweets about food inflation or edible oil bans. But KN Agri Resources Ltd, incorporated in 1987, has survived decades of monsoon tantrums, commodity cycles, and the occasional CRISIL downgrade (the latest one in June 2024, to BBB+/Stable, bless their hearts).
The company’s charm lies in its simplicity — it buys soybean and grains, squeezes them, refines the oil, sells the meal to animal feed players, and keeps the power running through windmills. In short, it’s India’s version of Cargill, just with fewer Harvard degrees and more chai breaks.
And while the share price is sulking at ₹206, the fundamentals have been holding steady. FY25 saw sales of ₹1,711 crore and PAT of ₹37 crore, and the latest half-yearly numbers (Sep 2025) show revenue of ₹820 crore with ₹14 crore PAT. Not sizzling, but definitely not stale.
With brands like “Khanpan” and “Classic”, KNARL has turned kitchen essentials into an organized business — and its clientele includes the who’s who of agri global majors: Adani Wilmar, Cargill, Bunge, Olam, Cofco, and Godrej Agrovet. Basically, if your cooking oil came from somewhere, there’s a chance KN Agri had a hand in squeezing it.
3. Business Model – WTF Do They Even Do?
At first glance, KN Agri sounds like your friendly neighborhood oil mill. But once you dive deeper, it’s a multi-crop, multi-vertical agri ecosystem that’s juggling edible oils, flour, agro commodities, ethanol, and even wind energy.
Here’s the breakdown of their hustle:
a) Agri-Processing: The real cash cow — solvent extraction, refining of edible oils, and production of soya de-oiled cakes (DOC). Their 3 plants in Madhya Pradesh have an installed capacity of 3.75 lakh TPA for solvent extraction, 60,000 TPA for refining, and 24,000 TPA for flour milling. Basically, they can crush soya till the cows (literally) come home.
b) Agro Commodities Trading: The company doesn’t just stick to soy — it deals in maize, pulses, gram, sugar, and wheat. A bit of everything, because who trusts one crop in India?
c) Power Generation: They operate 4 windmills, turning soya profits into wind energy — diversification goals, anyone?
d) Ethanol & Bioenergy: Recently incorporated Sharaad KN Bio-Organics Pvt Ltd (2024–25) focuses on agro-processing and bioenergy. Because when you’ve got leftover grains, why not convert them into “fuel for the nation”?
It’s a business model where one leg crushes seeds, another grinds wheat, and the third spins turbines. You could call it vertically integrated… or vertically confused. But it works.
4. Financials Overview
(Half-Yearly Results – Consolidated Figures in ₹ crore)
Metric
Sep 2025
Sep 2024
Mar 2025
YoY %
QoQ %
Revenue
820
754
971
8.8% ↑
-15.5% ↓
EBITDA
24
25
36
-4% ↓
-33% ↓
PAT
14
14
23
0%
-39% ↓
EPS (₹)
5.61
5.74
9.08
-2.3% ↓
-38% ↓
Annualized EPS = 5.61 × 2 = ₹11.22 (Half-Yearly Basis) At the current price of ₹206, that’s a P/E of ~18.4x, slightly above the trailing 14x due to softening profits.
Commentary: The topline’s cooking fine, but the margins look like they’re on a low-oil diet. PAT is flat, and QoQ drop indicates weaker refining margins or export hiccups. Still, given global agri volatility, maintaining stable PAT is no small feat — it’s like surviving a bear attack with just a bucket of soya.
