KDDL Limited Reports Robust H1 FY26 Performance with 44% YoY Growth in Precision Engineering

KDDL Limited , a diversified player in watch components, ornamental packaging, and precision engineering, has released its investor presentation for Q2 and H1 FY26, highlighting significant growth across its business segments.

Key Financial Highlights

Revenue Growth: The company's consolidated revenue from operations for H1 FY26 stood at ₹981.7 crore, marking a substantial 29.8% year-over-year increase from ₹756.3 crore in H1 FY25.
EBITDA Performance: Consolidated EBITDA for H1 FY26 reached ₹166.8 crore, up 17.5% from ₹141.9 crore in the same period last year.
Profit After Tax: Despite the strong top-line growth, PAT after minority interest for H1 FY26 saw a 12% increase to ₹48.9 crore, compared to ₹43.9 crore in H1 FY25.

Segment-wise Performance

The Precision Engineering division, operated under the Eigen brand, delivered an impressive 44% year-over-year revenue growth in H1 FY26. This segment specializes in high-precision components for automotive, aerospace, and industrial sectors.

KDDL's watch component business, which includes the manufacturing of dials, hands, indexes, and bracelets, continued its planned growth trajectory. The company's Ornapac division, focusing on ornamental packaging for luxury watches and jewelry, also maintained its expansion momentum.

Strategic Developments

Market Expansion: KDDL is actively exploring opportunities in non-Swiss watch markets to diversify its customer base and strengthen its geographic presence. This move comes as a response to the ongoing slowdown in the Swiss watch market.
Dividend Declaration: The company has declared an interim dividend of ₹15 per share for the period, signaling confidence in its financial position and commitment to shareholder returns.
Operational Leverage: KDDL's Eigen division is leveraging its tool design, engineering, and automation capabilities to position itself for scalable growth in high-margin, export-driven markets.

Financial Position

As of September 30, 2025, KDDL's consolidated balance sheet showed:

Item	Amount (₹ crore)
Total Assets	2,653.90
Total Equity	1,856.60
Current Assets	1,855.90
Inventories	741.20

The company's strong balance sheet and liquidity position provide a solid foundation for future growth and investments.

Outlook

While KDDL has demonstrated robust revenue growth, particularly in its Precision Engineering segment, the company faces challenges in maintaining profit margins amidst rising operational costs. The strategic focus on diversifying into non-Swiss watch markets and expanding the high-margin precision engineering business may help in sustaining growth momentum and improving profitability in the coming quarters.

Investors and analysts will be watching closely to see how KDDL navigates the evolving market dynamics, especially in the luxury watch and precision engineering sectors, as it continues to expand its global footprint and operational capabilities.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.73%	-1.00%	+1.41%	-6.94%	-13.50%	+1,266.82%

KDDL Limited , a key player in the precision and watch components industry, has reported a mixed set of financial results for the second quarter. The company saw significant revenue growth but experienced a decline in net profit, reflecting both opportunities and challenges in the current market environment.

Revenue Growth

KDDL reported a robust increase in quarterly revenue, which rose to ₹5.16 billion, up from ₹3.96 billion in the same quarter of the previous year. This represents a substantial year-over-year growth of approximately 30%, indicating strong demand for the company's products and services.

Profitability Metrics

Despite the impressive revenue growth, KDDL's profitability showed some pressure:

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) increased to ₹720 million from ₹631 million year-over-year.
However, the EBITDA margin compressed to 13.94% from 15.93% in the comparable quarter, suggesting increased costs or pricing pressures.
Consolidated net profit declined to ₹194 million, compared to ₹245.6 million in the same period last year, marking a decrease of about 21%.

Financial Performance Overview

Metric	Q2 Current	Q2 Previous	YoY Change
Revenue	₹5,160.00 million	₹3,960.00 million	+30.30%
EBITDA	₹720.00 million	₹631.00 million	+14.10%
EBITDA Margin	13.94%	15.93%	-199 bps
Net Profit	₹194.00 million	₹245.60 million	-21.00%

Dividend Announcement

In a separate development, KDDL's Board of Directors approved the declaration of an interim dividend of ₹15 per fully paid-up equity share (face value ₹10 each), representing a 150% dividend. The company has set Friday, 14th November, as the Record Date for determining shareholder eligibility for this dividend payment.

Market Implications

The contrasting trends of strong revenue growth and declining profitability may signal challenges in maintaining margins amidst expansion. Investors and analysts will likely be watching closely to see how KDDL manages these pressures in the coming quarters.

While the revenue growth is encouraging and reflects positively on the company's market position and demand for its products, the decline in net profit and margin compression may raise questions about cost management and operational efficiency.

The declaration of a significant interim dividend, despite the profit decline, may be seen as a positive signal of the management's confidence in the company's financial stability and future prospects.

As KDDL navigates this complex financial landscape, stakeholders will be keen to see how the company balances growth initiatives with profitability improvement measures in the upcoming quarters.