Kinetic Engineering reports Q4FY26 sales growth of 16.1%

Kinetic Engineering Ltd reported a 16.1% year-on-year increase in net sales to ₹447.3 Mn for the quarter ended Q4FY26, driven by demand across its transmission, driveline, and electric vehicle verticals. The company’s adjusted profit after tax surged 128.6% to ₹11.2 Mn, reflecting improved operational efficiency and a strategic focus on high-margin components. EBITDA for the quarter rose 10.6% to ₹34.5 Mn, with margins expanding by 245 basis points quarter-on-quarter to 7.7%.

The company’s total expenditure for Q4FY26 stood at ₹412.8 Mn, an increase of 16.5% compared to the same period last year. Interest costs declined by 16.4% year-on-year to ₹14.3 Mn, aiding the growth in profit before tax, which reached ₹11.2 Mn. However, reported PAT was ₹3.6 Mn, impacted by exceptional items amounting to ₹7.6 Mn related to past service costs due to wage code revision in gratuity.

Strategic Developments

Kinetic Engineering is advancing its electric mobility strategy through its subsidiary, Kinetic Watts & Volts Ltd, which holds an 84.7% equity stake. The subsidiary has launched the electric Kinetic DX and DX+ scooters, powered by Range-X 2.6 kWh LFP batteries offering a range of up to 116 km. Promoters have invested ₹72 Cr in the subsidiary and aim to infuse an additional ₹177 Cr to scale the DX platform.

The company has also partnered with Jio Things to develop connected EVs, integrating features such as voice-assisted interaction and smart digital instrument clusters. Additionally, the inauguration of Kinetic Lab, a dedicated training centre for two-wheeler EV technology, aims to strengthen after-sales infrastructure and build a skilled workforce for the expanding EV ecosystem.

Financial Performance

The following table outlines the consolidated quarterly income statement for Kinetic Engineering Limited:

Particulars (INR Mn)	Q4FY26	Q3FY26	Q4FY25	YoY%	QoQ%
Net Sales	447.3	383.7	385.4	16.1%	16.6%
Total Income	447.3	383.7	385.4	16.1%	16.6%
Total expenditure	412.8	363.5	354.2	16.5%	13.6%
EBITDA	34.5	20.2	31.2	10.6%	70.8%
EBITDA Margin (%)	7.7%	5.3%	8.1%	-38bps	+245bps
EBIT	25.5	13.3	22.0	15.9%	91.7%
Interest	14.3	11.8	17.1	-16.4%	21.2%
PBT	11.2	1.5	4.9	128.6%	646.7%
Adjusted PAT	11.2	1.5	4.9	128.6%	646.7%
Reported PAT	3.6	1.5	4.9	-26.5%	140.0%

Balance Sheet Highlights

The annual consolidated balance sheet for FY26 shows a robust financial position with total assets growing to ₹2,933.4 Mn from ₹2,366.4 Mn in the previous year. Shareholders' equity increased significantly to ₹1,631.4 Mn, driven by a rise in reserves and surplus to ₹1,221.4 Mn. The company strengthened its asset base with property, plant, and equipment valued at ₹648.8 Mn, while inventories rose to ₹687.0 Mn to support increased production activities.

Promoter confidence remains strong, evidenced by the conversion of warrants issued in March 2025. The company issued 93,56,725 warrants at an issue price of ₹171, with 11,69,591 warrants converted by the specified date. This capital infusion supports the company’s expansion plans and its goal to achieve EBITDA profitability by FY27 for its EV vertical.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+15.75%	+17.87%	+13.15%	-7.75%	+18.22%	+413.93%

Kinetic Engineering Limited reported a 66% decline in consolidated net profit to ₹87 lakh for the financial year ended March 31, 2026, compared to ₹623 lakh in the previous year. Total revenue from operations rose 11% to ₹15,775 lakh from ₹14,246 lakh in FY25, while total expenses increased to ₹16,478 lakh from ₹14,904 lakh. The company recorded an exceptional cost of ₹76 lakh towards past service cost due to wage code revision in gratuity during the year.

Quarterly Performance

For the quarter ended March 31, 2026, the company reported a consolidated net profit of ₹36 lakh, a decrease from ₹49 lakh in the same quarter of the previous year. Revenue from operations for the quarter stood at ₹4,474 lakh, up from ₹3,854 lakh in Q4 FY25. Profit before tax for the quarter was ₹36 lakh. On a standalone basis, Q4 net profit came in at ₹51 lakh compared to ₹82 lakh in the same period of the previous year, while standalone Q4 revenue stood at ₹3,982 lakh versus ₹3,854 lakh year-on-year. The statutory auditors, Pawan Jain and Associates, issued an unmodified opinion on the audited financial results.

The following table summarises the key consolidated and standalone quarterly metrics:

Metric:	Q4 FY26	Q4 FY25
Consolidated Net Profit:	₹36 lakh	₹49 lakh
Consolidated Revenue from Operations:	₹4,474 lakh	₹3,854 lakh
Standalone Net Profit:	₹51 lakh	₹82 lakh
Standalone Revenue:	₹3,982 lakh	₹3,854 lakh

Financial Performance

The standalone net profit for FY26 stood at ₹231 lakh, a significant decrease from ₹673 lakh in the previous year. Total income for the year was ₹15,830 lakh, compared to ₹15,497 lakh in FY25. The company's basic earnings per share (EPS) for the year dropped to ₹0.97 from ₹3.03 in the previous year. Other income for the year included a profit on the sale of non-core assets amounting to ₹458 lakh.

Metric:	FY26 (₹ in Lakhs)	FY25 (₹ in Lakhs)
Total Revenue from Operations:	15,775	14,246
Total Expenses:	16,478	14,904
Profit for the Period:	87	623
Basic EPS:	0.43	2.89

Board Decisions and Investments

The Board of Directors, at its meeting held on May 29, 2026, approved the re-appointment of Mr. Bhagwan S Waghmare as the Internal Auditor for FY 2026-27. Additionally, the Board took note of investments made in its subsidiary, Kinetic Watts and Volts Limited. During the quarter, the company allotted 31,00,000 equity shares following the conversion of warrants at an issue price of ₹171 per warrant, aggregating to ₹39,75,75,000.

The company invested ₹13,00,00,000 in the equity share capital of its subsidiary, comprising ₹3,00,00,000 on February 23, 2026, and ₹10,00,00,000 on March 31, 2026. Subsequently, on May 29, 2026, the company subscribed to 1,00,00,000 equity shares in Kinetic Watts and Volts Limited at ₹10 per share, amounting to ₹10,00,00,000. Post-allotment, Kinetic Engineering Limited holds 84.69% of the total paid-up share capital of the subsidiary.