The promoter group of KDDL Limited reduced its aggregate stake in the company to 48.14% from 50.43% following a series of share disposals in August 2026.

Pranav Shankar Saboo, acting for himself and other promoter group members, disclosed the transaction under Regulation 29(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The filing was submitted to the National Stock Exchange of India Limited and BSE Limited on August 24, 2026.

Transaction Details

The promoter group disposed of a total of 3,08,489 equity shares carrying voting rights during the reporting period. These sales were executed through both open market transactions and inter-se transfers between group entities.

Conversely, the group acquired 27,010 shares through similar channels on June 29, 2026. The net effect of these movements resulted in a reduction of the promoter group's holding by 2.51% of the total diluted voting capital.

Key Share Movements

Pranav Shankar Saboo was the primary seller within the group, disposing of 35,489 shares between May 25 and May 29, 2026, and a further 2,46,000 shares on August 21, 2026. Dream Digital Technology Private Limited also sold 27,000 shares on June 29, 2026.

On the acquisition side, Vardhan Properties and Investment Private Limited purchased 27,000 shares, while Asha Devi Saboo (Veena Kanoria Family Trust) acquired 10 shares, both on June 29, 2026.

Post-Transaction Holding

Following these transactions, the promoter group's total holding stands at 59,20,947 shares out of the company's total equity share capital of 12,299,280. There are no encumbrances, pledges, or liens reported against these shares.

Yashovardhan Saboo remains the largest individual holder within the promoter group with 18,02,173 shares (14.65%), followed by Rajendra Kumar Saboo (RKS JS Family Trust) with 13,92,098 shares (11.32%).

What the Numbers Show

The disposal activity highlights a significant shift in internal portfolio management within the promoter group. While the aggregate stake decreased, the specific exit of Pranav Shankar Saboo—who sold over 3.8 lakh shares—contrasts with the static holdings of other major family members like Yashovardhan Saboo and Anuradha Saboo. This suggests targeted liquidity events for specific promoters rather than a broad-based divestment by the entire group.

KDDL Limited reported standalone operational net revenue of Rs. 504.8 Crores for FY26, reflecting 31.6% year-on-year growth, with total dividend of ₹23 per share including an interim payout of ₹15 and a proposed final dividend of ₹8.

The company has fixed September 8, 2026 as the record date for the final dividend, subject to shareholder approval at the 46th Annual General Meeting scheduled for September 15, 2026 via video conferencing at 3:00 pm IST.

Financial Performance

KDDL delivered strong standalone results for the financial year ended March 31, 2026, driven by growth across all business segments despite continued softness in the global Swiss watch market.

On a consolidated basis, the Group achieved sales revenue of Rs. 22,077.8 million in FY26, compared to Rs. 16,945.7 million in FY25, a growth of 30.3%. Consolidated profit before tax increased from Rs. 1,895.0 million to Rs. 1,956.6 million, a growth of 3.2%.

Segment Performance

The precision engineering division (Eigen) emerged as a key growth driver, contributing 39.4% to standalone revenue with revenue of around Rs. 200 Crores, reflecting 35.6% growth. Export revenue from this segment grew 49.7%. The watch component segment, including steel bracelets, grew 31.3% with domestic and export revenue rising 20.9% and 35.5% respectively. The ornamental packaging division recorded 37.3% revenue growth, supported by ramp-up at the Panchkula facility.

The bracelet division, commissioned in October 2024 with an installed capacity of approximately 75,000 units per annum, achieved 75% capacity utilisation during the year. Revenue from the bracelet business grew 214%.

Key Financial Ratios

The Debt Service Coverage Ratio moderated to 5.60 times from 6.91 times, primarily due to higher debt repayments linked to capacity expansion. Tangible Fixed Assets increased to Rs. 2,936 million from Rs. 2,660 million.

Dividend and AGM Agenda

The Board has recommended a final dividend of ₹8 per equity share (80% of face value of ₹10), complementing an interim dividend of ₹15 per share already paid during the year, bringing the total FY26 dividend to ₹23 per share.

Shareholders will vote on special resolutions to approve one-time incentive payouts for two executives, exceeding standard remuneration limits under Section 197 of the Companies Act, 2013:

These payouts were recommended by the Nomination and Remuneration Committee based on operational performance that exceeded financial budgets by Rs. 18.5 Crores and actual FY25 performance by Rs. 27.6 Crores.

Other agenda items include the re-appointment of Sanjeev Kumar Masown as a director liable to retire by rotation, ratification of remuneration for M/s Khushwinder Kumar & Co. as Cost Auditor for FY27 capped at ₹1 lakh plus GST, and approval for borrowing from shareholders via unsecured fixed deposits.

Subsidiary Highlights

Ethos Limited, the luxury watch retail subsidiary, reported standalone turnover of Rs. 1,65,312 Lacs in FY26, up from Rs. 1,27,651 Lacs in FY25. Profit Before Tax stood at Rs. 12,747 Lacs and Profit After Tax at Rs. 9,492 Lacs. The company expanded its boutique network from 73 to 94 boutiques across 30 cities, with the network further growing to 103 boutiques across 34 cities as on date.

Pylania SA recorded revenue growth of 43% to CHF 2.26 million. Silvercity Brands AG, which operates the Favre-Leuba brand, recorded revenue of CHF 3.309 million compared to CHF 1.286 million in the previous year.

Industry Context

Swiss watch exports declined 1.7% to CHF 25.6 Billion in 2025, with export volumes falling 4.8% to 14.6 million watches. India stood out as a growth market, with Swiss watch exports to India reaching approximately CHF 296 million in 2025, an 8.1% increase from CHF 273.9 million in 2024. India's CAGR for Swiss watch exports over 2022-2025 stood at 16.42%, the highest among all tracked markets.

The Indian watch market was valued at approximately USD 4.19 billion in 2025. The implementation of TEPA reduced customs duty on Swiss watches to 15.71% from January 2026, with duties scheduled to be phased out completely by 2031.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE291D01011/5ae98076-8714-47a6-83ae-e7016887e70b.pdf