KDDL revenue reached Rs 2,153.4 crore as margin fell to 16.4%

KDDL Limited reported consolidated revenue from operations of Rs 2,153.4 crore in FY26, up from Rs 816.2 crore in FY22, while EBITDA margin declined to 16.4% from 19.5% in FY24. FY26 EBITDA rose to Rs 363.2 crore, but profit after tax fell below the prior two years as depreciation, finance cost and tax expense increased.

How did KDDL’s revenue and operating profit change from FY22 to FY26?

KDDL’s consolidated revenue from operations increased by Rs 1,337.2 crore between FY22 and FY26, rising in each reported year from Rs 816.2 crore to Rs 1,119.5 crore in FY23, Rs 1,391.0 crore in FY24, Rs 1,647.9 crore in FY25 and Rs 2,153.4 crore in FY26. Total income, which includes other income, rose from Rs 831.5 crore in FY22 to Rs 2,207.8 crore in FY26.

EBITDA, meaning earnings before interest, tax, depreciation and amortisation, increased to Rs 363.2 crore in FY26 from Rs 122.4 crore in FY22. Gross profit rose from Rs 359.7 crore to Rs 931.4 crore over the same period, while FY26 EBITDA was Rs 56.2 crore above FY25 EBITDA of Rs 307.0 crore.

FY26 revenue was Rs 505.5 crore higher than FY25, whereas EBITDA increased by Rs 56.2 crore. Cost of goods sold increased to Rs 1,276.3 crore from Rs 975.4 crore, employee cost rose to Rs 271.0 crore from Rs 202.7 crore, and other expenses reached Rs 297.3 crore from Rs 209.5 crore.

Why did KDDL’s FY26 EBITDA margin decline?

KDDL’s EBITDA margin declined to 16.4% in FY26 from 18.1% in FY25 and 19.5% in FY24 despite the increase in revenue to Rs 2,153.4 crore. Gross profit margin was 42.2% in FY26, compared with 42.4% in FY25 and 44.1% in FY24, while gross profit rose by Rs 212.3 crore from the prior year.

The three main operating expense lines increased by Rs 457.0 crore in aggregate from FY25 to FY26. Cost of goods sold rose by Rs 300.9 crore, employee cost by Rs 68.3 crore and other expenses by Rs 87.8 crore, compared with a Rs 513.2 crore increase in total income.

Depreciation increased to Rs 122.4 crore in FY26 from Rs 86.1 crore in FY25 and Rs 64.9 crore in FY24. Consequently, EBIT, or earnings before interest and tax, margin declined to 10.9% from 13.0% in FY25 and 14.9% in FY24; finance cost also rose to Rs 42.4 crore from Rs 31.4 crore.

KDDL recorded an exceptional expense of Rs 2.4 crore in FY26 for the statutory impact of labour codes. Profit before tax was Rs 195.7 crore, up from Rs 189.5 crore in FY25, but the pre-tax margin fell to 8.9% from 11.2% as the revenue increase did not produce a matching increase in operating and post-operating margins.

What happened to KDDL’s profit after tax in FY26?

KDDL’s consolidated profit after tax was Rs 135.2 crore in FY26, down Rs 7.1 crore from Rs 142.3 crore in FY25 and Rs 2.2 crore from Rs 137.4 crore in FY24. It nevertheless exceeded FY22 profit after tax of Rs 37.2 crore by Rs 98.0 crore.

Profit after tax margin declined to 6.1% in FY26 from 8.4% in FY25 and 9.7% in FY24. Tax expense increased to Rs 60.5 crore from Rs 47.2 crore in FY25, even though profit before tax increased by Rs 6.2 crore.

Basic and diluted earnings per share were Rs 71.63 in FY26, compared with Rs 76.26 in FY25 and Rs 81.90 in FY24. The FY26 figure was above FY22 earnings per share of Rs 25.30, but it marked a second consecutive annual decline from the FY24 level.

KDDL’s standalone and consolidated results differed in FY26. Standalone revenue from operations was Rs 495.8 crore and EBITDA margin was 23.1%, compared with consolidated revenue of Rs 2,153.4 crore and EBITDA margin of 16.4%; the group includes premium and luxury watch retail, luxury-product distribution, watch components, dials and packaging businesses.

How did KDDL’s consolidated assets and liabilities change?

KDDL’s total consolidated assets increased to Rs 2,754.8 crore at March 2026 from Rs 738.5 crore at March 2022 and Rs 2,090.1 crore at March 2025. Current assets rose to Rs 1,805.3 crore from Rs 437.7 crore over five years, while non-current assets increased to Rs 949.5 crore from Rs 300.8 crore.

Inventory was Rs 792.8 crore at March 2026, compared with Rs 657.9 crore a year earlier and Rs 279.5 crore at March 2022. Bank balances rose to Rs 526.5 crore from Rs 322.2 crore, cash and cash equivalents were Rs 208.5 crore versus Rs 194.7 crore, and trade receivables increased to Rs 117.0 crore from Rs 88.2 crore.

Property, plant and equipment reached Rs 374.8 crore at March 2026, up from Rs 269.8 crore in March 2025 and Rs 159.9 crore in March 2022. Right-of-use assets were Rs 314.7 crore, compared with Rs 301.3 crore a year earlier, taking these two asset categories to Rs 689.5 crore combined.

Equity increased to Rs 1,917.9 crore at March 2026 from Rs 1,410.5 crore at March 2025, including non-controlling interest of Rs 837.6 crore. Non-current lease liabilities were Rs 286.9 crore and current lease liabilities were Rs 68.4 crore, while current borrowings increased to Rs 82.6 crore from Rs 56.0 crore and non-current borrowings were Rs 73.9 crore.

Conclusion

KDDL’s five-year consolidated record shows substantial expansion in revenue, operating profit, assets and equity. FY26 revenue of Rs 2,153.4 crore was far above FY22 revenue of Rs 816.2 crore, and EBITDA increased from Rs 122.4 crore to Rs 363.2 crore, but EBITDA, EBIT, pre-tax and post-tax margins were below their FY24 levels and FY26 profit after tax was below FY25 and FY24.

The next reported period will indicate whether KDDL can change the FY26 cost and margin pattern. Measures disclosed for monitoring include inventory of Rs 792.8 crore, combined lease liabilities of Rs 355.3 crore, FY26 depreciation of Rs 122.4 crore, finance cost of Rs 42.4 crore and the Rs 2.4 crore statutory labour-code expense recorded in FY26.