KDDL Limited filed its Business Responsibility and Sustainability Report (BRSR) for the financial year ended March 31, 2026, with the stock exchanges on August 24, 2026. The disclosure covers environmental performance, social responsibility initiatives, and governance practices across its operations.

The company reported a turnover of ₹4,958 crore and a net worth of ₹3,839 crore as per the CSR applicability section of the filing. Operations span nine national plants and one office, serving markets across 14 Indian states and 28 countries. Exports accounted for 71% of total turnover during the period.

Environmental Performance

Total energy consumption rose to 28,495.4 Giga Joules (GJ) in FY26 from 28,096.4 GJ in the prior year. Renewable energy sources contributed 1,141.7 GJ, while non-renewable sources accounted for 27,353.7 GJ. Energy intensity per rupee of turnover improved to 0.6 GJ from 0.8 GJ.

Water withdrawal increased to 74,305 kilolitres (KL) from 68,850.9 KL. Recycled water constituted 46.81% of total water withdrawal. Total waste generated stood at 903.4 metric tonnes, with 37.6 tonnes recovered through recycling.

Workforce and Social Metrics

The company employed 688 permanent employees and 1,951 workers at the end of the fiscal year. Female representation among permanent employees was 4.5%, while it stood at 31.9% among workers. Turnover rate for permanent employees was 18.3% in FY26 compared to 12.6% in FY25.

Training coverage reached 94.8% of employees other than the Board and Key Managerial Personnel. The company reported zero lost-time injuries and zero fatalities across all categories.

Corporate Governance and CSR

KDDL maintains compliance with SEBI’s Listing Obligations and Disclosure Requirements. The Board comprises 10 directors, with 20% female representation. No fines or penalties were reported during the year. Four shareholder complaints were received and resolved by year-end.

Under its CSR initiatives, the company planted 161,342 trees in FY26 through the Million Tree Project, bringing the cumulative total to 538,049 trees since inception. Other initiatives included medical assistance, vocational training, and organ donation campaigns.

KDDL Limited reported a consolidated net profit of ₹44.7 crore for Q1FY27, a 50.7% year-on-year increase from ₹29.7 crore in the corresponding period last year, driven by strong revenue growth across its watch components and precision engineering segments. The company’s consolidated revenue from operations rose 36.3% to ₹633.8 crore, up from ₹465.0 crore in Q1FY26. These results were approved by the Board of Directors on August 4, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, with Walker Chandiook & Co LLP serving as the statutory auditor.

Financial Performance Overview

KDDL’s consolidated EBITDA for Q1FY27 stood at ₹108.4 crore, reflecting a 34.8% year-on-year growth from ₹80.4 crore in Q1FY26. The EBITDA margin remained stable at 16.76%, compared to 16.86% in the prior-year period. On a standalone basis, the company recorded a net profit of ₹19.5 crore, up 63.9% from ₹11.9 crore in Q1FY26, while standalone revenue grew 39.8% to ₹153.9 crore.

The following table summarises the key consolidated financial metrics for the quarter:

Segment and Operational Highlights

The company’s operations span two primary segments: Precision and watch components, and Watches, accessories and other luxury items. The investor presentation highlighted mid-to-long-term growth drivers across its business units. The Dials & Hands segment targets a ~10–12% CAGR over the next 5–7 years, fueled by rising demand from Japanese brands and growth in handcrafted enamel work. The Bracelets segment, focused on the Swiss mid-to-high-end market, projects a ~20–25% CAGR, leveraging cost-effective production and growing Swiss demand.

Additionally, the Eigen precision engineering division, which supplies high-complexity parts to aerospace and automotive sectors, expects a ~20–25% CAGR. Ornapac, the ornamental packaging unit, sees a ₹80–100 crore opportunity driven by export potential with Swiss watch and global jewelry brands. The company also noted a ₹50–75 crore opportunity in Cases & Related Parts, capitalizing on the "China+1" localization trend in the Swiss mid-end market.

Balance Sheet and Corporate Developments

As of March 2026, KDDL’s consolidated total assets stood at ₹2,754.8 crore, with non-current assets at ₹949.5 crore and current assets at ₹1,805.3 crore. Total liabilities were ₹2,754.8 crore, comprising equity of ₹1,917.9 crore, non-current liabilities of ₹368.0 crore, and current liabilities of ₹469.0 crore. Cash and cash equivalents held at the consolidated level were ₹208.5 crore, alongside bank balances of ₹526.5 crore.

Key corporate actions disclosed during the quarter included:

• Ethos Limited Rights Issue: Subsidiary Ethos Limited completed a rights issue of 22,77,250 equity shares at ₹1,800 per share, aggregating to ₹40,991 lakh. As of June 30, 2026, ₹10,979 lakh had been utilised for working capital, with the remaining ₹30,012 lakh invested in scheduled bank deposits.
• Shareholding Changes: Ethos Lifestyle Private Limited underwent dilution through preferential issues. In April 2026, Ethos Limited acquired additional shares from promoter Mr. Pranav Shankar Saboo for ₹2,026 lakh, increasing its holding to 77.42%.
• Impairment Assessment: Management identified impairment indicators for property, plant, and equipment worth ₹4,067 lakh related to subsidiary Estima AG. However, no impairment charge was booked as the recoverable amount exceeded the carrying amount as of June 30, 2026.

What the Numbers Show

The divergence between standalone and consolidated figures underscores the strategic weight of KDDL’s subsidiaries. While the parent company generated ₹153.9 crore in standalone revenue, the group total stood at ₹633.8 crore, indicating that subsidiaries contributed approximately 75% of the total top line. The consolidated profit before tax was ₹62.0 crore, substantially higher than the standalone profit before tax of ₹26.2 crore, highlighting that the majority of the company’s operational scale and profitability is housed within its subsidiary entities, particularly Ethos Limited and its downstream operations.