The HPCL Rajasthan Refinery Limited (HRRL) project, a joint venture between Hindustan Petroleum Corporation Limited and the Rajasthan Government, is expected to be completed next month. Located in Pachpadra, Barmer district, the facility is a significant advancement in India’s energy infrastructure, with its foundation laid by Prime Minister Narendra Modi in 2018. owns 74% while the Rajasthan Government holds 26% of the project, valued at Rs 430 billion. The refinery will have a capacity of nine Million Metric Tonnes Per Annum (MMTPA), sourcing crude oil from Gujarat and Barmer. Additionally, is engaged in CSR activities, including.
The recent announcement that Kamdhenu Ltd has delivered its highest-ever profitability for the first half of fiscal year 2025-26 is a noteworthy milestone in an industry often challenged by commodity-price swings, cyclical demand and heavy capital intensity. According to the company’s unaudited results for the half year ended 30 September 2025, revenue from operations was approximately Rs 3.86 billion, representing around a 3 % growth over the same period last year. More significantly, profit before tax (PBT) surged by about 33 % to Rs 540.3 million, and the PBT margin expanded to 14.0 % versus 10.9 % in H1 FY25 an improvement of 310 basis points. Profit after tax (PAT) rose ~28 % to Rs 400.1 million.
Such performance gains are impressive especially given the backdrop of the steel industry, which in recent years has faced erratic pricing, elevated raw-material costs, regulatory uncertainties and unpredictable demand from infrastructure and construction. In that context, what stands out in Kamdhenu’s results is its combination of revenue growth (albeit modest), margin expansion and return to strong profitability suggesting operational discipline, and perhaps more importantly, structural strength in its business model A key driver appears to be the company’s growing royalty income: the report indicates royalty income was up about 27 % to Rs 860 million.
Strong Profitability Suggesting Operational
Helped by a one-time receipt. This is telling, because royalty income is an indicator of the brand’s monetisation and the strength of the franchise model. Kamdhenu is described as a leading manufacturer and seller of branded TMT bars in the retail segment in India, and the franchise/asset-light model enables it to scale without the full capital burden of manufacturing expansion The model appears to be delivering: own-facility sales volumes were ~61,400 MT, while franchise volumes rose 8 % YoY to ~180,000 MT (1.8 lakh MT) At the same time, cost optimisation efforts and operating discipline seem to have played a role the margin lift indicates the company has been able to better manage.
Fixed costs, leverage scale, and capture efficiency across operations. The management’s commentary emphasises “resilient profitability despite a dynamic steel environment” and points to the brand’s extensive franchise network and pan-India distribution strength as enabling factors From a strategic vantage point, the result raises some interesting points for investors and industry watchers: firstly, the reinforcing of the franchise/royalty route in a commodity industry where scale and capital intensity are often barriers; secondly, the ability to grow profit faster than revenue that suggests margin leverage.
Thirdly, the brand strength in the retail TMT-bars segment, which is fragmented and competitive; and finally, the broader structural tailwinds of infrastructure spend in India, with construction activity remaining robust, which bodes well for demand for steel reinforcement bars (Transcript) Nevertheless, alongside the positives it is important to highlight the caveats and keep perspective. The revenue growth of just ~3 % for H1 suggests that while margins improved sharply, top-line expansion remains modest. Also, the company notes that unseasonal weather and prolonged rainfall in key markets temporarily affected operations and that softer steel prices weighed on average selling realisations.
Company Transitions From Moderate
These are not one-off risks but recurring industry dynamics In terms of value-creation implications: if Kamdhenu continues to expand royalty income, grow franchise volumes, and manage cost structure while infrastructure demand remains strong, then the margin milestone achieved in H1 FY26 may be a stepping-stone rather than a peak. Investors would watch how the company transitions from moderate revenue growth to stronger volume growth, how pricing realisations evolve (especially if steel prices firm up), and how the franchise expansion plays out across geographies From a competitive standpoint, the fact that Kamdhenu is already the “largest manufacturer and seller of branded.
TMT bars in the retail segment” in India gives it a meaningful position to leverage The branded TMT segment has a higher margin potential compared to undifferentiated commodity bars, and the brand-plus-franchise model offers differentiation in a largely unbranded market space Internally, one might look for how the business is deploying incremental investments: while the royalty/asset-light route is strong for scaling, the company still maintains manufacturing facilities (own-facility volumes around 61,400 MT in H1) and needs to balance capacity utilisation, maintenance, raw-material sourcing, cost of production, and logistic reach. How efficiently it manages these will determine if the margin gain is sustainable.
HPCL India’s Government Continuing
In the context of industry demand With India’s government continuing to emphasize infrastructure spend, affordable housing, smart cities, and urbanisation, the demand for TMT bars and reinforcement steel remains structurally positive. Kamdhenu is thus positioned to benefit from these macro tailwinds. At the same time, steel being a cyclical commodity, if raw material costs (scrap, iron ore, etc) or global over-capacity impact prices, then margins could compress. The company’s ability to manage both top-line growth and cost headwinds will be key going forward Looking ahead, analysts and the market will likely focus on a few parameters volume growth in the franchise network.
Realisation trends (are selling prices firming?); raw-material cost management; margin sustainability (can the 14 % PBT margin be extended or improved?); and whether the asset-light model scales new geography and dealer/franchise count meaningfully. Also important will be whether one-time items (e.g., the special royalty receipt) distort the current margin narrative and whether the business can replicate this level without relying on such items Kamdhenu’s H1 FY26 results mark an important milestone record profitability, margin expansion and a stronger brand/franchise model are all positive signals. While the revenue growth remains moderate.
The improvement in profitability shows the business is unlocking value and gaining leverage. For stakeholders (investors, industry watchers, and even customers/dealers), this result affirms Kamdhenu’s strategic positioning in the branded TMT segment and suggests that this business (Report) could offer more than just commodity-steel dynamics a brand with franchise scale and margin potential. But with cyclicality and cost pressures never far away in steel, the key will be execution in coming quarters and the ability to translate this margin milestone into sustained growth.
Q1. What does “highest-ever profitability” mean for Kamdhenu in H1 FY26?
It means Kamdhenu Ltd achieved a record profit for the first half of the financial year 2025-26, with profit before tax (PBT) up about 33 % year-on-year and the margin expanding to ~14 %.
Q2. What drove the margin improvement?
The margin improvement stemmed from increased royalty income (– 27 % growth) and continued cost optimisation, combined with a strong franchise distribution network and branded retail segment strength.
Q3. How did revenues perform, and what about volumes?
Revenues grew modestly (around 3 % year-on-year for H1) to ~Rs 3.86 billion, while own-facility volumes (~61,400 MT) and franchise volumes (up ~8 % YoY to ~1.8 lakh MT) showed the business is scaling.
Q4. What are the business implications of the royalty income increase?
The rise in royalty income underscores Kamdhenu’s asset-light franchise model, which allows growth via brand & distribution rather than heavy capital investment, improving profitability and scalability.
Q5. What risks or headwinds remain despite the strong numbers?
Although the numbers are impressive, risks include softer steel prices, unseasonal weather affecting operations in key markets (as noted), and volume/realisation pressures. The company acknowledges these short-term issues.
