KIRI INDUSTRIES RESEARCH REPORT FOR LONG TERM INVESTORS

Kiri Industries Ltd (NSE: KIRIINDUS, BSE: 532967) was founded in 1998 in Ahmedabad, Gujarat, and is one of India’s larger manufacturers and exporters of dyes and dye intermediates (reactive, acid and direct dyes; intermediates such as vinyl sulphone and H-acid), supplying textile customers in India and across export markets. For most of the last decade, however, the stock’s story has not been dyes — it has been the DyStar litigation in Singapore, and that story has now concluded in Kiri’s favour. Event 1 — DyStar exit completed, cash received. After winning its minority-oppression case, the Singapore court ordered a sale of Kiri’s 37.57% stake in DyStar Global Holdings. In May 2025 a share purchase agreement was executed with Zhejiang Longsheng; aggregate proceeds to Kiri were approximately US$ 696 million (base consideration plus interest awarded at 5.33% and legal-cost reimbursement). The money is now on the balance sheet: Dec-2025 quarter PAT of Rs 5,023 Cr, FY26 operating cash flow of Rs 4,555 Cr, borrowings repaid down to Rs 42 Cr and consolidated net worth of about Rs 6,436 Cr against a market capitalisation of about Rs 3,461 Cr — i.e. the stock trades at roughly 0.50x book value. Event 2 — redeployment into copper. Through wholly-owned subsidiary Indo Asia Copper Ltd, Kiri is building a greenfield integrated 5,00,000 TPA copper smelter + fertilizer complex at Jafrabad (Amreli), Gujarat — estimated project cost around Rs 10,661 Cr (copper complex ~Rs 8,100 Cr plus desalination and infrastructure), funded at 70:30 debt-equity with about Rs 1,036 Cr of equity already infused. Construction has started; management targets production from December 2028 and has indicated a project IRR of ~25%. Roughly half of the post-tax DyStar proceeds are earmarked as copper equity. Meanwhile the core dyes business is turning: Q1 FY27 revenue +54.5% YoY to Rs 312 Cr, operating profit positive (Rs +16 Cr) for the first time in eight quarters.