Kennametal India Reports Strong Q3FY26 Results; Declares Interim Dividend of Rs. 40/- Per Share
Kennametal India Limited reported unaudited Q3FY26 results with total income from operations at ₹4,075 million, up from ₹2,941 million in Q3FY25, and net profit after tax rising to ₹514 million from ₹244 million. For the nine months ended March 31, 2026, total income stood at ₹10,424 million versus ₹8,576 million in the prior-year period, with net profit after tax at ₹1,072 million against ₹716 million. The Board declared an interim dividend of Rs. 40/- per equity share of Rs. 10/- each for FY2025-26, with May 15, 2026 set as the Record Date. The company also disclosed an increase in gratuity liability of ₹52 million during the period due to the notification of the Labour Codes by the Government of India.

*this image is generated using AI for illustrative purposes only.
Kennametal India Limited reported its unaudited financial results for the third quarter and nine months ended March 31, 2026, reflecting a notable improvement in revenue and profitability on a year-on-year basis. The results were reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on May 7, 2026, in compliance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Q3FY26 Financial Performance
The company's total income from operations for the quarter ended March 31, 2026 rose to ₹4,075 million, compared to ₹3,365 million in the preceding quarter ended December 31, 2025, and ₹2,941 million in Q3FY25. Net profit before tax for Q3FY26 stood at ₹692 million, significantly higher than ₹353 million in Q2FY26 and ₹328 million in Q3FY25. Net profit after tax for the quarter came in at ₹514 million, against ₹244 million in both the preceding quarter and the corresponding quarter of the previous year.
The following table summarises the key financial metrics for the quarter ended March 31, 2026:
| Metric: | Q3FY26 (31.03.2026) | Q2FY26 (31.12.2025) | Q3FY25 (31.03.2025) |
|---|---|---|---|
| Total Income from Operations (₹ millions): | 4,075 | 3,365 | 2,941 |
| Net Profit Before Tax (₹ millions): | 692 | 353 | 328 |
| Net Profit After Tax (₹ millions): | 514 | 244 | 244 |
| Total Comprehensive Income (₹ millions): | 504 | 228 | 242 |
| Basic & Diluted EPS (₹): | 23.38 | 11.11 | 11.11 |
Nine-Month Performance
For the nine months ended March 31, 2026, total income from operations reached ₹10,424 million, compared to ₹8,576 million for the nine months ended March 31, 2025. Net profit after tax for the nine-month period stood at ₹1,072 million, against ₹716 million in the corresponding period of the previous year. Basic and diluted earnings per share for the nine months ended March 31, 2026 were ₹48.77, compared to ₹32.58 for the nine months ended March 31, 2025.
| Metric: | 9M FY26 (31.03.2026) | 9M FY25 (31.03.2025) | FY25 Year Ended (30.06.2025) |
|---|---|---|---|
| Total Income from Operations (₹ millions): | 10,424 | 8,576 | 11,847 |
| Net Profit Before Tax (₹ millions): | 1,479 | 989 | 1,402 |
| Net Profit After Tax (₹ millions): | 1,072 | 716 | 1,029 |
| Total Comprehensive Income (₹ millions): | 1,046 | 706 | 1,024 |
| Basic & Diluted EPS (₹): | 48.77 | 32.58 | 46.82 |
| Paid-up Equity Share Capital (₹ millions): | 220 | 220 | 220 |
| Reserves (₹ millions): | — | — | 7,253 |
Interim Dividend and Record Date
The Board of Directors, at its meeting held on May 7, 2026, declared an interim dividend of Rs. 40/- (Rupees Forty only) per equity share of Rs. 10/- each for the financial year 2025-26. The company has fixed May 15, 2026 as the Record Date for determining the shareholders entitled to receive this interim dividend.
Impact of Labour Codes
The company noted that on November 21, 2025, the Government of India notified the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020, and the Occupational Safety, Health and Working Conditions Code, 2020 — collectively referred to as the Labour Codes — consolidating 29 existing labour laws into a unified framework. The assessment of these changes resulted in an increase in gratuity liability arising out of past service cost by ₹52 million during the quarter and nine months ended March 31, 2026 (March 31, 2025: Nil), with an incremental impact of ₹18 million during the quarter due to a change in salary structure. This amount has been included under "Employee benefits expense" in the financial results. The company has stated it will continue to monitor the finalisation of Central and State Rules and record any additional accounting impact as required.
Compliance and Availability of Results
The financial results have been prepared in accordance with the Indian Accounting Standards notified under Section 133 of the Companies Act, 2013, and in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The full format of the financial results is available on the BSE website ( www.bseindia.com ) and on the company's website ( https://www.in.investors.kennametal.com/ ). The results were signed by Vijaykrishnan Venkatesan, Managing Director, on behalf of the Board of Directors, from Bengaluru on May 7, 2026.
Historical Stock Returns for Kennametal
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +10.40% | +14.80% | +27.06% | +27.06% | +27.06% | +203.59% |
How might the full implementation of the consolidated Labour Codes across Central and State Rules further impact Kennametal India's employee benefit expenses and overall cost structure in FY27?
Given that 9M FY26 revenue of ₹10,424 million has already surpassed full-year FY25 revenue of ₹11,847 million, what growth trajectory and margin expansion can investors expect for the full fiscal year and beyond?
Will the strong Q3FY26 performance and the ₹40 per share interim dividend signal a shift toward a more aggressive capital return policy, including potential special dividends or buybacks in future quarters?


































