KDDL Limited , a key player in the precision and watch components industry, has announced robust financial results for the second quarter and first half of fiscal year 2026, along with a substantial interim dividend declaration.

Financial Highlights

For the quarter ended September 30, 2025, KDDL Limited reported:

The company's revenue from operations saw a significant year-on-year increase of 33.12%, rising from ₹9,214.00 lakhs in Q2 FY2025 to ₹12,266.00 lakhs in Q2 FY2026. However, profit after tax slightly decreased by 4.31% to ₹1,444.00 lakhs compared to ₹1,509.00 lakhs in the same quarter of the previous year.

For the half-year ended September 30, 2025, KDDL Limited achieved:

• Revenue from operations of ₹23,276.00 lakhs, up by 34.13% from ₹17,353.00 lakhs in H1 FY2025
• Profit after tax of ₹2,634.00 lakhs, showing a 6.00% increase from ₹2,485.00 lakhs in the corresponding period last year

Interim Dividend Declaration

KDDL Limited's Board of Directors has approved an interim dividend of ₹15 per equity share (150%) on the face value of ₹10 each. The record date for determining shareholder eligibility for this dividend has been set as November 14, 2025.

Segment Performance

The precision and watch components segment, which is the company's primary business, delivered strong results:

• Q2 FY2026 revenue: ₹11,618.00 lakhs (up 32.82% YoY)
• Q2 FY2026 segment results: ₹2,688.00 lakhs (up 13.23% YoY)

Strategic Investments

During the quarter, KDDL Limited made strategic investments to strengthen its market position:

1. Invested ₹199.04 lakhs to acquire 11,058 Rights Equity Shares of ETHOS Limited at ₹1,800 per share.
2. Post this transaction, KDDL Limited's shareholding in ETHOS Limited increased to 50.12%.

Management Commentary

Yashovardhan Saboo, Chairman and Managing Director of KDDL Limited, stated, "Our strong performance in Q2 and H1 FY2026 reflects the resilience of our business model and the growing demand for our precision components. The interim dividend declaration underscores our commitment to delivering value to our shareholders while maintaining a strong financial position for future growth."

Outlook

With a robust order book and strategic investments in place, KDDL Limited appears well-positioned to capitalize on the growing demand in the precision and watch components sector. The company's focus on expanding its market share and enhancing operational efficiencies is expected to drive sustainable growth in the coming quarters.

KDDL Limited , a prominent player in the watchmaking and precision engineering industry, has taken a significant step to support its wholly-owned subsidiary, Pylania AG. The company has provided a corporate guarantee of EUR 2.63 million (equivalent to CHF 2.44 million) for a revolving loan facility extended as a Working Capital Demand Loan (WCDL) by ICICI Bank UK PLC-Germany Branch to Pylania AG.

Key Details of the Corporate Guarantee

Implications and Disclosures

KDDL Limited has assured stakeholders that this transaction is conducted on an arm's length basis, maintaining transparency and fairness. The company has explicitly stated that no promoters, members of the promoter group, or directors have any interest in this transaction, adhering to corporate governance best practices.

Financial Impact

From an accounting perspective, KDDL Limited will disclose this guarantee as a contingent liability in its financial statements. The company has indicated that at this point, there is no other impact on the listed entity beyond this disclosure requirement.

Regulatory Compliance

This corporate action has been reported in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. KDDL Limited has duly informed the National Stock Exchange of India Limited and BSE Limited about this development, ensuring adherence to regulatory norms and maintaining transparency with its investors and the market at large.

The provision of this corporate guarantee underscores KDDL Limited's commitment to supporting its subsidiary's operations and financial needs. By facilitating access to working capital for Pylania AG, KDDL Limited is potentially enabling its subsidiary to manage its short-term financial obligations more effectively, which could contribute to the overall operational efficiency of the group.