Dai-ichi Karkaria Ltd (DAICHI)
🎯 Key Takeaways
- Dai-ichi Karkaria Ltd is in a financial recovery phase following sustained losses, with management signaling stabilization through dividend declaration and approved related party transactions. The company has returned to modest profitability in Q1FY27 (Jun 2026), reporting ₹2 crore net profit after consecutive quarters of losses.
- Revenue grew 40.2% QoQ to ₹58 in Q1FY27.
- ⚠️ 1) Persistent negative ROE and ROCE raise concerns about capital productivity despite recent profitability. 2) Heavy reliance on related party transac
- Market Cap
- ₹236
- P/B Ratio
- 1.28
- ROE
- 1.2%
- ROCE
- 1.5%
- Debt/Equity
- 0.07
- Div Yield
- 0.47%
- Promoter
- 64.0%
📖 The Story
Dai-ichi Karkaria Ltd is in a financial recovery phase following sustained losses, with management signaling stabilization through dividend declaration and approved related party transactions. The company has returned to modest profitability in Q1FY27 (Jun 2026), reporting ₹2 crore net profit after consecutive quarters of losses. However, ROE remains negative at -0.4% and ROCE at 1.5%, indicating limited capital efficiency despite market cap growth.
📰 What's Happening
At the 66th AGM on August 27, 2026, the board declared a dividend of Rs. 1.50 per share (15%) for FY2026 and approved material related party transactions up to Rs. 60 crore each with ChampionX Dai-ichi India Private Limited and Indian Oxides and Chemicals Private Limited for 15 months. All resolutions were passed with 64.78% e-voting participation. Management emphasized continuity in governance and capital allocation through these transactions, which are likely tied to ongoing industrial supply agreements.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|
| Revenue | 39 | 43 | 38 | 41 | 58 |
| Operating Profit | -1 | -1 | -3 | -2 | 3 |
| OPM % | -3.1% | -1.8% | -7.4% | -4.5% | 5.7% |
| Net Profit | -1 | -0 | -2 | -1 | 2 |
| EPS | ₹0.03 | ₹0.01 | ₹-1.15 | ₹0.11 | ₹3.93 |
The company has reversed its loss trend, posting ₹2 crore net profit in Q1FY27 (Jun 2026) compared to ₹-2 crore in Dec 2025, with operating profit turning positive at ₹3 crore and OPM improving to 5.7%. This improvement aligns with management's focus on operational stabilization, though margins remain thin. The sequential recovery in profitability suggests early signs of turnaround, likely driven by cost optimization or volume recovery in core chemical segments.
🔮 Management Outlook & What's Next
Management has not provided explicit forward guidance on revenue or margins in the available filing content. However, the approval of related party transactions for up to 15 months and dividend declaration indicate confidence in near-term cash flow stability. The board's actions suggest a focus on maintaining stakeholder confidence through consistent capital returns and controlled related party engagements.
Extracted from official company announcements. Not StockFin.ai's opinion.
🏦 Balance Sheet (₹ Cr)
| Item | Mar 2025 | Mar 2025 | Mar 2026 | Mar 2026 |
|---|---|---|---|---|
| Equity Capital | 7 | 7 | 7 | 7 |
| Reserves | 181 | 172 | 177 | 178 |
| Borrowings | 13 | 19 | 13 | 12 |
| Total Liabilities | 232 | 227 | 224 | 225 |
| Fixed Assets | 126 | 131 | 122 | 122 |
| Investments | 24 | 22 | 28 | 25 |
| Total Assets | 232 | 227 | 224 | 225 |
The balance sheet shows stable equity at ₹7 crore with reserves at ₹177 crore as of March 2026, while total assets have slightly declined to ₹224 crore from ₹232 crore a year ago. Borrowings remain low at ₹13 crore, indicating minimal leverage and a conservative capital structure. The slight reduction in assets and stable equity base reflect limited reinvestment activity, consistent with a phase of consolidation rather than expansion.
💰 Cash Flow Statement (₹ Cr)
| Item | Mar 2026 |
|---|---|
| Operating | +5 |
| Investing | -10 |
| Financing | -3 |
| Net Cash Flow | -8 |
👥 Shareholding Pattern
| Category | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|
| Promoters | 64.0% | 64.0% | 64.0% | 64.0% |
| FII | 0.0% | 0.0% | 0.0% | 0.0% |
| DII | 0.0% | 0.0% | 0.0% | 0.0% |
| Public | 28.5% | 28.4% | 28.5% | 29.2% |
| # Shareholders | 6,348 | 6,200 | 5,923 | 5,909 |
Promoter holding remains steady at 63.98% across all recent quarters, with no FII or DII holdings reported in Q1FY27. The number of public shareholders has marginally decreased from 6,348 to 5,909, suggesting limited retail interest or stability in existing holdings. No signs of institutional accumulation or exit, implying the stock is largely held by promoters and a stable but narrow shareholder base.
⚖️ Peer Comparison — Chemicals
| Company | MCap (₹ Cr) | P/E | ROCE | ROE | D/E |
|---|---|---|---|---|---|
| PIDILITIND | 1.53 L Cr | 57.6 | 33.4% | — | 0.01 |
| SRF | 73,810 | 34.1 | 15.6% | — | 0.36 |
| LINDEINDIA | 52,814 | 96.7 | 17.5% | — | 0.00 |
| FLUOROCHEM | 48,774 | 79.7 | 9.6% | — | 0.34 |
| NAVINFLUOR | 43,256 | 54.7 | 22.2% | — | 0.31 |
| GODREJIND | 36,153 | 30.8 | 9.2% | — | 4.57 |
| HSCL | 33,807 | 42.0 | 20.7% | — | 0.16 |
| AETHER | 23,029 | 97.7 | 13.8% | — | 0.08 |
| DEEPAKNTR | 21,155 | 27.0 | 15.3% | — | 0.26 |
| CASTROLIND | 19,891 | 18.7 | 76.2% | — | 0.00 |
🔗 Peer Stock Analyses
⚠️ Risk Factors
1) Persistent negative ROE and ROCE raise concerns about capital productivity despite recent profitability. 2) Heavy reliance on related party transactions for operational continuity introduces governance and continuity risks. 3) Low trading liquidity and narrow institutional interest may lead to price volatility. 4) No visible growth strategy or capex plans disclosed, limiting long-term growth visibility.
📋 Recent Filings
- Announcement2026-09-25Dai-ichi Karkaria Limited announced that its designated persons and immediate relatives must not trade company shares from October 1, 2026, until 48 h…
- 🔴 Announcement2026-09-21Dai-ichi Karkaria disclosed a Rs. 15.18 lakh income tax penalty for FY 2024-25 received on September 19, 2026, related to alleged under-reporting of R…
- 🔴 Insider Trading2026-09-18On September 18, 2026, promoter Firoze Adi Vakil transferred 25,000 shares (0.33% of total capital) of Dai-ichi Karkaria Ltd to his daughter as a gift…
- 🔴 Insider Trading2026-09-18Ms. Meher Vakil Taff, promoter and CEO of Dai-ichi Karkaria Ltd, received 25,000 shares (0.33% of total capital) as a gift from her father, Mr. Firoze…
- 🟡 Board Meeting2026-08-27Dai-ichi Karkaria held its 66th AGM on August 27, 2026 via video conference, adopting audited standalone and consolidated financial statements for FY2…
🧠 Analyst's Read
Dai-ichi Karkaria is in a fragile recovery phase with improving quarterly profits but structurally weak returns and limited investor base. The key near-term watchpoints are the execution of approved related party projects and whether profitability sustains beyond one quarter without one-time benefits.
Based on filing content and financial data. Not a recommendation.
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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-09-29.
Editorial & Data Transparency Notice
This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.
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