Kennametal India Limited has announced its Q2FY26 financial results for the quarter ended December 31, 2025, demonstrating robust growth momentum with strong revenue expansion and solid profitability metrics. The company's quarterly performance reflects effective execution amid favorable macroeconomic conditions and strategic operational discipline.

Financial Performance Overview

Kennametal India delivered impressive Q2FY26 results with revenue reaching ₹3340 million compared to ₹2870 million in the same period last year, marking a substantial 16.4% year-over-year growth. The company's Profit Before Tax stood at ₹353 million, representing a 9% increase from ₹324 million in Q2FY25, despite absorbing one-time costs related to new labor code implementation.

Revenue Growth and Market Performance

The company's strong revenue performance of ₹3340 million demonstrates its ability to capitalize on India's continued economic strength and favorable industrial conditions. Kennametal India's diversified portfolio and customer-centric approach enabled effective market share capture while maintaining operational discipline across key industrial sectors.

Operational Highlights and Strategic Positioning

Despite facing dynamic tungsten pricing environment challenges, Kennametal India maintained strong performance through volume growth and strategic pricing actions. The Hard Metal segment particularly contributed to the robust quarterly results, showcasing the company's operational excellence and market positioning.

Management Commentary and Outlook

Managing Director Vijaykrishnan Venkatesan highlighted the company's ability to leverage India's economic growth while effectively managing market challenges. The leadership emphasized Kennametal India's commitment to advancing manufacturing excellence, expanding market presence, and delivering consistent value to shareholders as part of its long-term growth strategy.

Performance Summary

Kennametal India's Q2FY26 results showcase strong operational execution with revenue growth of 16.4% and solid profitability expansion despite one-time regulatory costs. The company's performance demonstrates resilient business fundamentals and effective strategic positioning in India's growing industrial landscape.

Kennametal India Limited has received a credit rating affirmation from India Ratings and Research, with the rating agency maintaining the company's long-term issuer rating at IND AA- with a stable outlook. The rating decision was communicated through an official report dated December 16, 2025.

Credit Rating Details

India Ratings and Research affirmed Kennametal India's credit rating following their comprehensive evaluation. The rating reflects the agency's assessment of the company's financial strength and creditworthiness.

Regulatory Compliance

The company disclosed this rating development to BSE Limited on December 17, 2025, demonstrating adherence to regulatory requirements. Managing Director Vijaykrishnan Venkatesan signed the disclosure letter, ensuring proper corporate governance protocols were followed.

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, which mandates listed companies to inform stock exchanges about material developments including credit rating changes.

Rating Agency Communication

India Ratings and Research, part of the Fitch Group, issued the rating letter to Kennametal India's Chief Financial Officer Suresh Reddy. The rating agency emphasized that their methodology involves factual information verification from multiple sources and reasonable investigation procedures.

The rating agency noted that their ratings are based on established criteria and methodologies that undergo continuous evaluation and updates. Senior Director Abhishek Bhattacharya signed the rating communication on behalf of India Ratings and Research.

Corporate Information

Kennametal India Limited operates from its registered office at 8/9 Mile, Tumkur Road, Bangalore 560073. The company maintains transparency in its financial disclosures and continues to meet its listing obligations as required by securities market regulations.

The affirmation of Kennametal India's long-term issuer rating at IND AA- with a stable outlook reflects the company's strong credit profile. This rating decision underscores the company's financial stability and creditworthiness in the market.