KDDL Limited , a leading player in the watch components and precision engineering sectors, has reported a robust financial performance for the second quarter of fiscal year 2026. The company's total income reached INR 126.80 crores, marking a significant 30% year-on-year growth.

Key Financial Highlights

• Total income for Q2 FY26: INR 126.80 crores (30% YoY growth)
• Consolidated revenue for H1 FY26: INR 1,007.90 crores (crossed the INR 1,000 crore milestone)
• Precision Engineering division: 55% quarterly growth

Strong Performance Across Segments

The company's growth was primarily driven by its Precision Engineering division, which registered an impressive 55% increase in quarterly revenue. This surge was attributed to the expansion of electroplating capacity and strong demand from export markets.

KDDL's Chairman and Managing Director, Mr. Yashovardhan Saboo, commented on the performance during the earnings call, stating, "Our Precision Engineering business continues to deliver consistent and profitable growth. Demand from the export market remains healthy, supported by reliability and technical excellence."

Watch Components Segment

While the watch components segment faced some headwinds due to global market challenges, the company reported steady volumes with notable improvements in realization. This progress was driven by a combination of price adjustments and a focus on premiumization, emphasizing value-added components and special offerings.

Expanding Capabilities

To support its growth momentum, KDDL is expanding its in-house electroplating capacity, which is expected to be operational by the end of Q1 FY27. This expansion will significantly enhance the company's efficiency and capability to serve new customers with larger, more complex orders.

Diversification and Future Outlook

KDDL is actively diversifying its product portfolio and exploring new markets. The company's packaging division, though still in its early stages, delivered exceptional performance in H1 FY26 with a 70% year-on-year revenue growth. This division focuses on premium packaging solutions for international and domestic luxury brands.

Mr. Saboo expressed optimism about the company's future, stating, "We are exploring export opportunities for our packaging products, targeting global luxury brands that are seeking sustainable and differentiated packaging solutions. This business represents a strategic growth pillar for KDDL, complementing our core watch component portfolio and leveraging our design and manufacturing strengths."

Despite challenges in the global watch industry, particularly in markets like China and Hong Kong, KDDL remains confident in its ability to navigate the complex environment through innovation, diversification, and strategic expansion of its capabilities.

Dividend Announcement

In a move that reflects the company's strong financial position, KDDL's wholly-owned subsidiary, Mahen Distribution Limited, has declared an interim dividend of INR 30.00 per share. Additionally, KDDL Limited itself has declared an interim dividend of INR 15.00 per share to pass on the benefit to its shareholders.

As KDDL Limited continues to expand its presence in both domestic and international markets, the company appears well-positioned to capitalize on emerging opportunities in the precision engineering and luxury goods sectors.

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

1. 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.

2. 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.

3. 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:

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.