KDDL Reports 30% Revenue Growth but Net Profit Declines 21% in Q2

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.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.86%	+2.85%	+1.19%	-5.87%	-5.41%	+1,495.27%

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:

Particulars (in ₹ Lakhs)	Q2 FY2026	Q2 FY2025	YoY Growth
Revenue from Operations	12,266.00	9,214.00	33.12%
Profit Before Tax	1,950.00	1,997.00	-2.35%
Profit After Tax	1,444.00	1,509.00	-4.31%

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:

Invested ₹199.04 lakhs to acquire 11,058 Rights Equity Shares of ETHOS Limited at ₹1,800 per share.
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.