KSE Ltd Q1FY26 FY25: Cattle Feed King with 34% ROE, 43% ROCE, ₹781 Cr Market Cap, and Ice Cream Side Hustle
1. At a Glance
Here’s the crime scene file: KSE Ltd — incorporated in 1963, runs 7 cattle feed plants, 2 dairy units, and a side-gig ice cream brand called Vesta. Market cap? ₹781 Cr. Current price? ₹2,441. Annual sales? ₹1,634 Cr, profits? ₹110 Cr, dividend yield? A juicy 3.28%.
Quarterly revenue dipped slightly (₹416 Cr, -3.58% YoY), but PAT shot up (₹38.6 Cr, +110% YoY). Detective note: this is a company that can turn grass (literally) into gold.
Valuations? P/E of 7.1, way below FMCG peers. Book Value ₹927, meaning you’re paying 2.6× BV. ROE is 34%, ROCE 43% — Sherlock’s magnifying glass screams: “Somebody’s milking this cow very efficiently.”
2. Introduction
If you’ve ever wondered who feeds India’s cows and then sells you the ice cream from their milk, meet KSE Ltd. Born in Kerala, this company has been feeding cattle for 60+ years and quietly compounding profits.
Think about it: while you’re worrying about Sensex falling, KSE is worrying about whether cows in Palakkad are eating their pellet feed properly. While IT companies fight attrition, KSE is fighting milk spoilage and coconut oil refining margins.
And yet, here we are — a 781 Cr market cap company with double-digit ROE, stable cash flows, and a Godrej Group stake (6.07%). The stock has been moving like a milk tanker on Kerala’s highways — slow but steady, with the occasional sharp turn.
Question: Would you rather own a hyped-up tech IPO burning cash, or a 60-year-old cow whisperer compounding quietly in Kerala?
3. Business Model – WTF Do They Even Do?
KSE’s empire is built on three buckets:
Cattle Feed: Flagship product, branded under KS Supreme, KS Deluxe Plus, KS Layer Feeds. With 513,000 tons annual production, KSE is literally feeding half the cows of South India.
Dairy: Milk under brand KS Toned Milk and ghee/ice cream under Vesta. In FY25, they processed 6,054 KL of milk and 1,544 KL of ice cream — that’s enough ice cream to fuel every Onam festival.
Oil & Solvent Extraction: Coconut oil, deoiled cakes, refined oil — basically using byproducts smartly to squeeze every rupee.
So yes, KSE is simultaneously farmer’s friend, dairy uncle, and ice cream wallah.
4. Financials Overview
Quarterly Comparison (₹ Cr):
Source table
Metric
Latest Qtr (Jun’25)
YoY Qtr (Jun’24)
Prev Qtr (Mar’25)
YoY %
QoQ %
Revenue
416
431
392
-3.6%
+6.1%
EBITDA
50
25
46
+100%
+8.7%
PAT
38.6
18.4
35.0
+110%
+10.3%
EPS (₹)
120.5
57.4
108.7
+110%
+10.8%
Detective note: Sales dipped YoY, but profitability exploded — margins went from dull to dairy-rich. Clearly, the cows are chewing right this quarter.
