Kinetic Engineering Limited (KEL), a leading Indian automotive manufacturing company, has reported a profit for the quarter ended September 30, 2025. The company's financial results, approved by its Board of Directors on November 12, 2025, reveal positive performance both on standalone and consolidated bases.

Financial Highlights

KEL reported the following key figures for Q2 FY26:

Subsidiary Performance

The consolidated results include the performance of KEL's subsidiary, Kinetic Watts & Volts Limited (KWV). The electric vehicle arm has shown significant progress, achieving several milestones:

• Received ARAI homologation certificate and completed testing
• Inaugurated its first showroom on October 16, 2025
• Plans to commence deliveries of the Kinetic DX at the end of November 2025

Expansion and Future Outlook

KWV has reported strong bookings and is accelerating its nationwide expansion:

• Issued over 50 Letters of Intent (LOIs) in key cities across India
• Targets sales of 5,000 units by March 2026, potentially adding ₹50.00 crores to consolidated sales
• Aims to sell 60,000 units in FY 2026-27, with a projected top-line of ₹600.00 crores from the subsidiary alone

Strategic Investments

KEL has made strategic moves to strengthen its position:

• Infused ₹9.00 crores to increase its shareholding in KWV to 80%
• Issued 2,09,000 convertible warrants at ₹71.00 per warrant to M/s Transaction Square LLP and Ms. Sai Geeta Penumeta, which were converted to equity shares
• Invested ₹1.90 crores in its subsidiary company

Manufacturing Capabilities

The company has enhanced its manufacturing capabilities:

• Inaugurated a state-of-the-art robotic chassis line
• Revamped its paint shop and added new metal pressing facilities
• Currently producing chassis for the E-Luna and Kinetic DX EV

Management Commentary

Mr. Ajinkya Firodia, Vice Chairman of Kinetic India, stated, "This quarter marks a significant step forward in our journey. The response to KWV has been exceptional, with bookings far exceeding projections, reflecting the deep trust in the Kinetic brand and the proven reliability of our products."

KEL's focus on electric mobility and strategic investments in manufacturing capabilities position it well for future growth. The company's profitable financial base, strong demand outlook, and expanding EV distribution footprint suggest potential for sustainable growth and long-term value creation for its stakeholders.

Investors and market watchers will be keen to see how KEL's expansion plans and the performance of its EV subsidiary unfold in the coming quarters.

Kinetic Engineering Limited (KEL) has recently made a significant move by investing ₹9 crore in its subsidiary, Kinetic Watts and Volts Limited (KWVL). This strategic investment has increased KEL's stake in KWVL, strengthening its position in the automobile sector.

Investment Details

KEL has subscribed to 90 lakh equity shares of KWVL at ₹10 per share, totaling an investment of ₹9 crore. This transaction has resulted in a notable change in KEL's ownership of KWVL, as illustrated in the following table:

About Kinetic Watts and Volts Limited

KWVL, incorporated on September 27, 2022, is a relatively new player in the automobile sector. Key points about KWVL include:

• Authorized Capital: ₹75.00 crore
• Paid-up Capital: ₹71.84 crore (post-investment)
• Current Turnover: Nil

Transaction Insights

• The investment is classified as a related party transaction, conducted at arm's length.
• The allotment of shares took place on November 6, 2023.
• No governmental or regulatory approvals were required for this acquisition.

Strategic Implications

This investment by Kinetic Engineering Limited in KWVL appears to be a strategic move to strengthen its presence in the automobile sector. By increasing its stake to 79.79%, KEL has reinforced its control over the subsidiary, potentially positioning itself for future growth and expansion in the industry.

While KWVL currently reports no turnover, this substantial investment suggests KEL's confidence in the subsidiary's future prospects and its potential to contribute to the parent company's growth in the automobile sector.

Investors and market watchers will likely keep a close eye on how this investment translates into business development and potential revenue generation for KWVL in the coming quarters.