Kavveri Defence & Wireless Technologies reported a net profit of ₹81.17 lakh for the financial year ended March 31, 2026, a significant decline from ₹544.87 lakh in the previous year. Revenue from operations stood at ₹1,880.71 lakh, while total income was ₹1,927.06 lakh. The company’s Board of Directors approved the audited standalone and consolidated financial results for the year at a meeting held on May 30, 2026. These results were published in the Financial Express (English Edition) and Hosadigantha (Kannada Edition) on June 01, 2026, pursuant to Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The statutory auditors, Rajagopal & Badri Narayanan, issued a qualified opinion on the standalone financial statements. The auditors noted that the company carries investments in certain subsidiaries valued at ₹2,834.07 lakh as of March 31, 2026. These subsidiaries have been consistently incurring losses, and their net worth has been fully or substantially eroded. The auditors stated that the management has not performed a fair valuation of these investments, making it impossible to determine if an impairment loss is required under Ind AS 36.

Consequently, the auditors are unable to ascertain the extent to which the carrying value of these investments may require impairment or the resultant impact on the net profit and net worth. The management attributed the lack of provision to the long-term nature of the investments and ongoing discussions to recover dues and turn around the subsidiaries. The auditors also highlighted that the company has not reinstated forex balances for certain receivables and payables, which is not in conformity with Ind AS 21.

The Board approved the revision of remuneration for senior management, subject to shareholder approval. The remuneration for Mr. Chennareddy Shivakumarreddy, Managing Director, was revised effective April 13, 2026. Mr. Chenna Reddy Sanketh Ram Reddy, Whole Time Director, and Mrs. Rajpeta Hanumenthareddy Kasturi, Whole Time Director and Chief Financial Officer, also had their remuneration revised effective April 1, 2026.

Financial Performance

The company reported a basic earnings per share (EPS) of ₹0.23 for the year, down from ₹2.71 in the previous year. On a consolidated basis, the net profit for the year was ₹124.17 lakh, with a basic EPS of ₹0.35. The total comprehensive income for the year stood at ₹81.17 lakh on a standalone basis.

Standalone Financial Results (FY26)

The company confirmed it has not raised any funds through public issue, rights issue, or preferential issue during the year. It also declared that it is not identified as a Large Corporate as of March 31, 2026, and therefore, the fundraising framework for large corporates is not applicable.

Kavveri Defence & Wireless Technologies Limited has reported changes in its shareholding structure following a preferential allotment of equity shares. Promoter group member Chenna Reddy Sanketh Ram Reddy disclosed that his holding percentage has decreased due to the issuance of 2,57,50,000 equity shares on a preferential basis to promoters and non-promoters. The disclosure was made to the stock exchanges on May 22, 2026, under Regulation 29(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The allotment date was recorded as May 21, 2026.

Shareholding Details

The preferential allotment resulted in a significant expansion of the company's equity base. While the number of shares held by Chenna Reddy Sanketh Ram Reddy remained unchanged at 27,90,000, his ownership percentage diluted from 8.12% to 4.64% of the total paid-up capital. The total equity share capital of the company increased to ₹60,12,42,600, divided into 6,01,24,260 equity shares of ₹10 each, up from the pre-allotment capital of ₹34,37,42,600.

Capital Structure Changes

The following table details the changes in the acquirer's holding and the company's capital structure:

The disclosure confirmed that there was no change in the absolute number of shares held by the promoter, only a reduction in the percentage stake due to the increase in the total number of outstanding shares. The total diluted share capital post-allotment stands at 6,01,24,260 equity shares.