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

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.