KDDL Q4 FY26 Results: Revenue Up 37%, EBITDA ₹95cr

Market reaction and the key takeaway

KDDL Ltd shares rose about 9.7% on the BSE after the company discussed its Q4 FY26 and FY26 performance, alongside business updates across manufacturing and its retail subsidiary, Ethos. The overall picture was of strong revenue momentum, supported by export demand in precision engineering and steady expansion at Ethos. At the same time, the company flagged uncertainty in the global luxury environment and near-term margin pressure in parts of its portfolio.

Management said FY26 played out better than it had expected after a weaker FY25, but it continued to frame the demand environment as uncertain and volatile. The earnings call also highlighted that customers are increasingly focused on supply-chain diversification and reliable long-term partners, a trend the company sees as a tailwind for its manufacturing businesses.

Consolidated Q4 FY26: growth with margin pressure visible

On a consolidated basis, KDDL reported total income of about ₹585 crore for Q4 FY26, up about 35.6% year-on-year. The company also reported consolidated EBITDA of ₹95 crore for the quarter, up about 25.2% year-on-year, with an EBITDA margin of 16.3%.

Separately, the exchange-filing based snapshot in the provided text said revenue from operations rose 37% year-on-year to ₹575 crore in Q4 FY26 compared with ₹419.6 crore in Q4 FY25. It also said profit after tax (PAT) increased 9.4% year-on-year to ₹34.5 crore in Q4 FY26 from ₹31.6 crore a year ago.

The same compilation also included a “Consolidated Net Profit” figure of ₹25.31 crore for Q4 (with 24.62% year-on-year growth) and a quarterly trend table showing Q4 net sales of ₹574.99 crore and operating margin of 14.85%. These figures were presented alongside the exchange-filing numbers in the source material.

Full-year FY26: revenue up about 30%, EBITDA up 18%

For FY26, the company reported consolidated revenue of ₹2,207.8 crore (total income), up about 30.3% year-on-year. Consolidated EBITDA for FY26 was reported at ₹363 crore, up about 18.3%, with an EBITDA margin of about 16.4%.

Another FY26 number set in the provided text said revenue rose 30.7% year-on-year to ₹2,153.4 crore from ₹1,647.9 crore in FY25, and PAT declined 5% year-on-year to ₹135.2 crore from ₹142.3 crore. Taken together, the stated numbers indicate that top-line growth remained strong through FY26, while PAT movement was weaker than revenue growth.

Standalone performance: Q4 EBITDA margin at 25.1%

On a standalone basis, management said total income for Q4 FY26 was ₹145.3 crore, up nearly 42% year-on-year. Full-year standalone revenue was ₹506 crore, up about 31.9% year-on-year.

Standalone EBITDA for Q4 was ₹36.4 crore, up 87.6% year-on-year. The company said the Q4 standalone EBITDA margin was its highest at 25.1%, while the full-year standalone EBITDA margin was 23.1% on EBITDA of ₹116.9 crore.

Segment snapshot: precision engineering, watch components, OrnaPack

The earnings discussion highlighted strong growth in precision engineering and packaging, while watch components faced headwinds in some markets. When excluding Ethos from consolidated results, the company said the watch component manufacturing business reported revenue of about ₹240 crore in FY26 versus ₹200 crore in the previous year, a growth of about 20%.

Precision engineering revenue for FY26 was reported at about ₹200 crore versus ₹147 crore in the previous year, a growth of 35% plus. The management commentary also separately stated that revenue in this division grew by more than 35% year-on-year to around ₹200 crore, backed by export-market momentum.

For packaging, the company said OrnaPack (also referenced as “NAPAC” in the text) reported FY26 revenue of about ₹23 crore versus about ₹17 crore last year, implying growth of about 37%. Management described the packaging division as still loss-making in its ramp-up stage, with profitability expected in the second half of the financial year.

Bracelet division: separate revenue line and near-term margin moderation

In the Q&A, the CFO said the bracelet division’s revenue is around ₹40 crore and is separate from the watch components revenue. Management also cautioned that bracelet margins could be moderated in the near term due to lower price points for newer customers.

Looking ahead, the chairman and managing director said the company anticipates a medium- to long-term growth outlook of about 25% CAGR for both the precision components and bracelet divisions. The watch component business, they added, may grow slightly less depending on macroeconomic conditions.

Ethos update: store expansion and inventory days

Ethos, the company’s retail subsidiary, was described as having delivered a record performance, supported by growth in number of stores, sales, and profit. In the Q&A, the managing director and CEO of Ethos said new stores are performing as expected, with some exceeding targets.

Ethos also outlined an expansion plan to double its network of boutiques over the next three years, with a focus on both tier 1 and tier 2 cities. The same section said the company’s inventory days improved from nearly 247 days to 221 days at cost.

Costs and capex: higher employee and operating expenses

The text noted that higher employee and operating expenses weighed on profitability margins in the quarter. Employee expenses increased to ₹74.4 crore from ₹52.4 crore in the year-ago quarter, while other expenses rose to ₹81.1 crore from ₹59.4 crore.

It also stated that during the year the company invested approximately ₹34 crore as capex across divisions. In another cost summary within the text, interest expenses were shown at ₹11.51 crore in Q4 FY26 versus ₹8.06 crore in Q4 FY25, and depreciation at ₹32.99 crore versus ₹23.87 crore.

Currency, exports, and backward integration plans

On currency movements, the CFO said movements have been favorable due to exports to Switzerland, but it is challenging to quantify the exact impact on EBITDA margins. The CFO added that the company expects the currency to remain stable, which should continue to benefit it.

On capability build-out, the CFO said the company is focusing on backward integration in the precision engineering division, particularly in the plating process, to ensure quality and consistency. Management linked these initiatives to sustaining customer confidence and selective capability and capacity expansion.

Key numbers table

What the results suggest for investors

The earnings commentary underscores a company balancing rapid growth with cost absorption. Management’s emphasis on export momentum in precision engineering and on customer supply-chain diversification indicates that manufacturing growth is being pursued through capability additions and deeper customer relationships.

But the same material also highlights risks: uncertain global demand in luxury markets, headwinds for Swiss watches in some regions, and a near-term moderation risk in bracelet margins. In addition, the packaging business is still in a loss phase during ramp-up, even as revenue scales.

Closing summary and what to watch next

KDDL’s FY26 was marked by strong top-line growth and an outsized jump in standalone Q4 EBITDA, alongside clear cost pressures and a cautious tone on global luxury demand. Management’s stated focus remains on export-led manufacturing growth, backward integration in key processes, and a faster-expanding Ethos store network.

Investors will likely track how quickly packaging turns profitable in the second half of the financial year, whether cost growth moderates, and how demand trends in global luxury markets affect watch components.