Kama Holdings presents a clean consolidated cash-flow record, with operating cash exceeding profit in each of the last six years. The record is shadowed by three structural features: a material subsidiary that draws large, recurring tax and duty demands, a debt structure where all ₹5,004 crore of borrowings sits at subsidiaries while the parent is debt-free, and a board controlled by promoter-family members who alternate re-elections with over 99.99% votes in favour.
Key findings
- Subsidiary SRF faces large, recurring tax and duty disputes
Major- SRF Limited received a fresh income-tax demand of ₹327.44 crore for AY 2022-23 primarily due to apparent computational errors in the final assessment order. A GST order of ₹235.07 crore for Dec 2019-Mar 2022, received in the previous year, was set aside by a favourable appeal order received during the current year. Earlier years saw draft assessment orders proposing adjustments of ₹178.5 crore and ₹258.55 crore, pending before the Dispute Resolution Panel as at 31 March 2024. - Standalone parent is debt-free; consolidated borrowings are ₹5,004 crore
Major- Kama Holdings Ltd (standalone) has no borrowings in any year from FY2020-21 through FY2025-26. Consolidated borrowings stood at ₹5,004 crore as of FY2025-26 [SQL]. The group also sold trade receivables without recourse of ₹756.96 crore in FY2021-22 and ₹369.12 crore in FY2020-21, derecognising them from the balance sheet. - Accounting elections keep large exchange losses off the P&L
Minor- The group carries an unamortised cumulative exchange loss of ₹216.55 crore on depreciable assets as at March 31, 2026, capitalised under a pre-2016 policy election rather than being charged to profit or loss. The group recognised a one-time exceptional charge of ₹86.83 crore in FY2025-26 for the impact of new Labour Codes. Deferred tax assets are recognised on unabsorbed carried forward losses of subsidiaries only to the extent management considers it probable that future taxable profits will be available. - Promoter family controls the board through alternating re-elections
Minor- Mr. Kartik Bharat Ram and Mr. Ashish Bharat Ram, brothers and promoter trustees of ABR Family Trust (which holds 75% of equity), have alternated retiring by rotation and being re-elected every year from FY2020-21 through FY2025-26, each receiving over 99.99% votes in favour. Ms. Ekta Maheshwari simultaneously holds the posts of Whole Time Director, CFO, and Company Secretary. Three independent directors ceased or resigned between FY2023-24 and FY2025-26. - Consolidated operating cash flow consistently exceeds profit
Clean- Consolidated CFO exceeded PAT in each of the last six fiscal years, with FY26 CFO of ₹2,561 crore covering PAT of ₹1,844 crore by 1.39 times. Consolidated ROCE declined from 31.81% in FY23 to 19.22% in FY24, recovered to 17.60% in FY25 and 19.95% in FY26 [SQL]. The Board declared total interim dividends of ₹133.02 crore in FY26.
What to watch
- SRF income-tax appeal. Outcome of the appeal against the ₹327.44 crore income-tax demand for AY 2022-23, as disclosed in the FY2025-26 annual report.
- SRF share disposal. Completion of the SRF Limited share disposal programme, expected by 31 March 2027 per the company's February 2026 disclosure.
- Director re-appointment. Re-appointment of Mr. Ashish Bharat Ram as Director at the 26th AGM on 1 September 2026.
Bottom line: This is a holding company whose consolidated cash generation is real and whose audit has been stable for six years. The risk is concentrated in the material subsidiary SRF Limited, which carries all the group's debt, faces a rolling series of large tax demands, and accounts for nearly all consolidated profit. Watch the resolution of the tax appeals and whether the share disposal programme alters Kama's grip on its sole economic engine.