Kundan Edifice FY26: steady profits, bigger ambitions beyond LED strips

Kundan Edifice Limited closed FY26 with revenue from operations of 105.14 crore, up 7% year on year from 98.20 crore. EBITDA rose to 16.69 crore from 15.79 crore, while PAT was flat at 7.77 crore versus 7.76 crore in FY25. In H2 FY26, the company reported revenue of 50.51 crore, EBITDA of 7.16 crore, and PAT of 3.26 crore.

The numbers suggest a year of stable profitability, but the bigger narrative in the investor presentation and the conference call was about positioning. Management framed FY25 and FY26 as foundation years, marked by consolidation of manufacturing, higher focus on design and development, and early movement into new business lines such as application-specific lighting, exports, project lighting, and battery energy storage systems.

FY26 financial picture: growth with higher finance costs

On the face of it, FY26 delivered moderate top-line growth and incremental EBITDA expansion. Cost of materials consumed stood at 70.90 crore, while other expenses rose to 16.91 crore from 14.06 crore. Finance costs increased to 4.09 crore from 3.04 crore, which kept profit before tax slightly lower year on year at 10.39 crore.

The balance sheet showed a clear build-up in working capital. Inventories increased to 39.94 crore as of March 2026 from 29.99 crore a year earlier. Trade receivables rose to 14.04 crore from 8.87 crore. Short-term borrowings increased to 27.64 crore from 20.70 crore. Total assets grew to 99.85 crore from 81.10 crore.

From strip lights to application-specific lighting

Kundan Edifice positions itself as an OEM and ODM specialist in flexible LED strip lighting. Its product range includes high-voltage and low-voltage flex strips and rope lights, with end applications spanning outdoor decor, façades, building exteriors, indoor furniture lighting, kitchen cabinets, wardrobes, and architectural lighting.

In FY26, management highlighted that R&D investments have begun translating into new business opportunities. The company launched the Neon Flex series and advanced GaN driver technologies and indicated strong customer interest in newer verticals such as façade, architectural, furniture, and specialty lighting.

In the conference call, the Managing Director explained that the company’s design and development work has shifted toward building products that are application-specific. Management described additions such as flexible wall washers and neon flex for façade lighting, aluminium profiles for furniture and cabinetry, solutions for underwater applications (submersible IP68 use cases), and products for refrigeration environments involving extreme cold and humidity.

This change is also reflected in how management wants to sell. Over the next two years, the company plans to create dedicated sales verticals with category heads for furniture and retail lighting, project lighting, power supplies, and e-commerce led portfolio expansion.

Capacity consolidation and modernization focus

A central operational milestone was the consolidation of the earlier Bhiwandi and Vasai plants into a single unified facility in Vasai in November 2024. The company now operates a 140,000 square feet facility, is ISO 9001:2015 certified, and has installed capacity of 530 lakh meters per year.

Management attributed improvements in quality control and operational efficiency to bringing key processes under one roof. The concall also mentioned ongoing implementation of SAP modules and AI-based training programs for employees as part of the operational excellence agenda.

On capital expenditure, management indicated there was no major capex in FY26 and guided that FY27 capex may remain within up to 5 crore, including planned automations, since the capex carried out in FY25 for new categories such as Neon Flex and GaN power supplies is still not fully utilized.

Exports, project lighting, and BESS: the FY30 framing

The investor presentation outlined a vision for 2030 with a total revenue target of about 475 crore, split into ODM growth (225 crore), project lighting (120 crore), exports and linear (80 crore), and BESS (50 crore). These are targets rather than segment disclosures, and the company did not provide segment-level FY26 revenues.

Exports featured prominently in the concall. Management said the company has onboarded 2 to 3 international companies and completed vendor registrations, approvals, and sampling. It expects export revenue to begin in the current year. When asked about competing with China, management stated that global buyers are pursuing a China+1 strategy, and also said Chinese suppliers are less open to customization. The company indicated its export quotes are at par or better in some cases.

Management also shared a procurement-side objective: imports were earlier about 75 to 80% of total purchases, are now around 50%, and the company aims to reduce this to around 30% over the next two years.

Project lighting was described as a new division that could include private, government, and infrastructure-related lighting projects. Management said it is already in discussions on a couple of projects and expects to get a foothold in the current year, with more clarity potentially in the second half of the year.

The most debated future move was entry into Battery Energy Storage Systems. Management described BESS as a large opportunity driven by renewable energy integration, grid modernization, and rising industrial power requirements. It also stated it does not plan a heavy-capex entry, and intends to start with technology tie-ups, semi-knocked-down solutions, and assembly in India. The company did not provide margin guidance for BESS and said specifics cannot be shared yet.

Investor takeaways

Kundan Edifice’s FY26 results reflect stable profitability with modest revenue growth, while the balance sheet signals higher working-capital intensity and increased short-term borrowings. Operationally, the plant consolidation and capacity disclosures provide some transparency on scale.

The forward narrative is centered on expanding beyond core OEM and ODM strip lighting into application-led products, exports, project lighting, and an early-stage BESS entry. Management guided for at least 25 to 30% sales growth in FY27 and capex of up to 5 crore, indicating a preference for near-term capital discipline.

For investors, the key monitorables from the documents are execution on export conversions, progress in project lighting, working-capital control as the company grows, and the eventual clarity on BESS economics. Customer concentration is also material, with management stating that the top five clients contribute about 60% of revenue.