Kinetic Engineering Q2 loss widens to Rs 11.21 crore

Kinetic Engineering Limited reported a consolidated loss after tax of Rs 11.21 crore for the quarter ended September 30, 2026, widening from Rs 17 lakh a year earlier, as total income rose to Rs 78.93 crore but total expenses increased to Rs 90.14 crore. Revenue from operations nearly doubled to Rs 78.31 crore.

Why did Kinetic Engineering report a wider Q2 loss?

Kinetic Engineering reported a wider loss because its expenses increased by more than its income in the September 2026 quarter. Total income rose by Rs 38.36 crore from Rs 40.57 crore in the quarter ended September 30, 2025, while total expenses increased by Rs 49.40 crore from Rs 40.74 crore, leaving a loss before tax and after tax of Rs 11.21 crore.

The latest consolidated loss included Rs 10.28 crore attributable to owners of Kinetic Engineering and Rs 91 lakh attributable to non-controlling interests. In the September 2025 quarter, the Rs 17 lakh group loss comprised Rs 7 lakh attributable to owners and Rs 10 lakh attributable to non-controlling interests. The results statement did not record current or deferred tax expense in either of the two quarterly periods.

The loss before exceptional items was Rs 11.21 crore in the September 2026 quarter, compared with Rs 17 lakh in the prior-year quarter. No exceptional item was recorded in either of those quarters. For the year ended March 31, 2026, however, Kinetic Engineering reported a Rs 76 lakh past-service gratuity cost related to a wage-code revision.

How much did Kinetic Engineering’s revenue grow in Q2?

Kinetic Engineering’s total revenue from operations rose to Rs 78.31 crore in the quarter ended September 30, 2026 from Rs 39.30 crore a year earlier. Net sales or income from operations increased to Rs 77.54 crore from Rs 39.18 crore, while other operating income rose to Rs 76 lakh from Rs 12 lakh.

Sequentially, revenue from operations increased by Rs 27.72 crore from Rs 50.59 crore in the quarter ended June 30, 2026. Other income fell to Rs 62 lakh in the September quarter from Rs 2.02 crore in the June quarter, but total income still rose by Rs 26.32 crore from Rs 52.61 crore to Rs 78.93 crore.

For the half year ended September 30, 2026, revenue from operations was Rs 128.90 crore, compared with Rs 74.64 crore in the corresponding half year of 2025. Total income rose to Rs 131.54 crore from Rs 81.52 crore, while the group moved from a Rs 35 lakh profit after tax to a Rs 24.16 crore loss after tax.

The consolidated results cover Kinetic Engineering and its subsidiary, Kinetic Watts & Volts Limited. Kinetic Engineering stated that it operates in a single segment, so the filing does not provide separate revenue, profitability or cost figures for the parent company and subsidiary.

Which costs rose faster than Kinetic Engineering’s income?

Kinetic Engineering’s materials consumed were the largest cost increase, rising to Rs 62.40 crore in the September 2026 quarter from Rs 20.82 crore a year earlier. Employee benefits expense increased to Rs 11.01 crore from Rs 6.37 crore, other expenses rose to Rs 19.01 crore from Rs 11.39 crore, and depreciation and amortisation increased to Rs 4.43 crore from Rs 1.49 crore.

Finance costs rose to Rs 1.75 crore from Rs 1.61 crore over the same comparison. Changes in inventories produced a credit of Rs 8.47 crore in the September 2026 quarter, compared with a Rs 95 lakh credit a year earlier. Even after that inventory movement, total expenses of Rs 90.14 crore exceeded total income by Rs 11.21 crore.

Compared with the immediately preceding quarter, total expenses rose by Rs 24.57 crore from Rs 65.57 crore in the June 2026 quarter. The loss after tax narrowed from Rs 12.96 crore in June to Rs 11.21 crore in September, despite the higher expense base, because total income increased from Rs 52.61 crore to Rs 78.93 crore.

For the half year, materials consumed reached Rs 96.21 crore, versus Rs 41.76 crore in the corresponding 2025 period. Employee benefits expense rose to Rs 21.21 crore from Rs 12.52 crore, other expenses rose to Rs 34.07 crore from Rs 21.52 crore, and depreciation and amortisation increased to Rs 7.94 crore from Rs 2.95 crore, taking six-month total expenses to Rs 155.70 crore.

What changed in Kinetic Engineering’s financial position?

Kinetic Engineering’s consolidated total assets increased to Rs 361.37 crore as at September 30, 2026 from Rs 293.34 crore as at March 31, 2026. Property, plant and equipment increased to Rs 120.42 crore from Rs 64.88 crore, while cash and cash equivalents increased to Rs 79.72 crore from Rs 39.11 crore.

Total equity rose to Rs 196.24 crore at September 30 from Rs 163.15 crore at March 31. Equity share capital increased to Rs 31.36 crore from Rs 26.91 crore and other equity rose to Rs 164.88 crore from Rs 136.24 crore. Non-current borrowings were Rs 51.72 crore, up from Rs 47.34 crore, while current borrowings increased to Rs 24.85 crore from Rs 23.24 crore.

The half-year cash-flow statement recorded Rs 5.30 crore of cash generated from operations before the direct-tax line, which was blank in the filing. Trade and other receivables absorbed Rs 15.32 crore and inventories absorbed Rs 3.39 crore, while trade and other payables contributed Rs 27.44 crore. The statement does not print a separate net cash from operating activities figure.

Financing activities generated Rs 61.18 crore in the half year ended September 30, 2026, including Rs 57.08 crore from the issue of equity shares or convertible warrants. The reported net increase in cash and cash equivalents was Rs 40.60 crore, with the opening balance of Rs 39.11 crore rising to Rs 79.72 crore.

What did Kinetic Engineering disclose about its subsidiary and warrants?

Kinetic Engineering disclosed a Rs 20 crore investment in the equity share capital of Kinetic Watts & Volts during the quarter and half year ended September 30, 2026. The filing does not specify Kinetic Watts & Volts’ standalone revenue, loss, assets or intended use of the investment proceeds.

On September 24, 2026, Kinetic Engineering converted the final tranche of 44,51,000 outstanding warrants into an equal number of fully paid equity shares. A further 6,36,134 warrants lapsed because holders did not exercise their conversion option within the stipulated period. Paid-up equity share capital was Rs 31.36 crore at September 30, 2026, compared with Rs 23.81 crore a year earlier.

Kinetic Engineering’s audit committee reviewed the results and its board approved them on November 13, 2026. The statutory auditors performed a limited review of the consolidated results. Their report states that a review is substantially less extensive than an audit and does not provide audit assurance.

Conclusion

Kinetic Engineering’s September 2026 quarter combined a sharp increase in revenue with a substantially wider consolidated loss. Revenue from operations rose to Rs 78.31 crore from Rs 39.30 crore, but materials, employee costs, depreciation and other expenses pushed the total expense bill to Rs 90.14 crore and resulted in a Rs 11.21 crore loss.

The next disclosed matters to watch are the financial effect of the Rs 20 crore equity investment in Kinetic Watts & Volts and the impact of the September 24 conversion of 44,51,000 warrants. Kinetic Engineering also reported Rs 79.72 crore of cash and cash equivalents at September 30, 2026 after Rs 61.18 crore of financing inflows during the half year.