Kiri Industries Posts ₹84.6 Crore Loss in Q4; Shares Drop By More Than 10%

Kiri Industries Ltd, a prominent player in the dye and chemical manufacturing sector, reported its financial results for the fourth quarter ended March 2025 on May 30. Alongside a rise in losses, the company also revealed a significant corporate development—the sale of its entire stake in DyStar, a global dyes and chemicals company, for over $676 million. This transaction marks a substantial strategic shift for the company, potentially altering its future financial landscape.

Kiri Industries Reports Weak Q4 with Higher Losses

For Q4 FY25, Kiri Industries posted a net loss of ₹84.6 crore, compared to a loss of ₹9.6 crore in the same period last year. This represents a substantial increase in losses year-on-year. The company's total revenue during the quarter declined by 6.5% to ₹205 crore, down from ₹219.3 crore in Q4 FY24. The decline in both top-line and bottom-line performance highlights ongoing challenges in the operating environment, including cost pressures and demand volatility.

Sells DyStar Stake to Zhejiang Longsheng for $676 Million

Despite the weak quarterly performance, the company announced the signing of a Share Purchase Agreement (SPA) with Zhejiang Longsheng Group. Under the agreement, Kiri Industries will sell its entire 37.57% stake in DyStar for a base consideration of $676.26 million.

At current exchange rates, this amounts to approximately ₹5,765 crore, which is significantly higher than Kiri Industries' current market capitalisation of around ₹3,800 crore.

As per the company’s statement: “Zhejiang Longsheng Group will acquire 26.23 lakh equity shares, representing 37.57% of DyStar’s paid-up share capital held by Kiri Industries.”

Furthermore, the agreement includes provisions for an additional payment: “An extra $20.29 million may be payable by the purchaser to cover any shortfall in the base consideration or to fulfil the purchaser’s obligations under the SPA.”

The final consideration could be subject to further adjustments, and the completion of the deal will depend on customary closing conditions and regulatory approvals.

Kiri Industries Share Price Performance

On May 30, 2025, Kiri Industries share price opened at ₹732.50, up slightly from the previous close of ₹726.55. Following a negative reaction to the earnings report, the stock fell sharply during intraday trading. It ended the session at ₹643.90 on the NSE. The 52-week high of ₹740.00 was touched on the same day, while the 52-week low of ₹280.25 was recorded on June 4, 2024.

Conclusion

Kiri Industries’ Q4 FY25 results reflect challenges, with increased losses and declining revenue. However, the agreement to sell its DyStar stake for over $676 million introduces a significant potential shift in its financial position. With the transaction value exceeding its market capitalisation, the deal could have important implications for the company’s balance sheet. Investors are expected to closely monitor developments related to regulatory clearances and the finalisation of the transaction.

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