Kinetic Engineering Limited (KEL), a prominent player in the Indian automotive component industry, has released its financial results for the first quarter, showcasing resilience in the face of market challenges.

Financial Performance

KEL reported net sales of ₹353.40 million for Q1, marking a decline of 10.7% year-over-year and 8.3% quarter-over-quarter. Despite the revenue dip, the company demonstrated improved operational efficiency, with EBITDA growing by 13.3% year-over-year to reach ₹35.80 million. The EBITDA margin stood at a healthy 8.7%, reflecting the company's ability to manage costs effectively in a challenging environment.

Business Segments and Operations

Kinetic Engineering operates through three key verticals:

1. Transmission
2. Driveline
3. EV Components

The company serves major Original Equipment Manufacturers (OEMs) including Tata Motors, Mahindra, and Ashok Leyland. KEL's manufacturing prowess is anchored by its state-of-the-art 50+ acre facility in Ahmednagar, which employs over 1,000 people and holds the prestigious IATF 16949 certification, underscoring its commitment to quality in automotive manufacturing.

Geographical Reach

KEL's sales composition reflects a strong domestic presence while maintaining a significant export footprint:

(Export markets include the US and Mexico)

Strategic Initiatives and Future Outlook

The company has been making strategic moves to position itself for future growth, particularly in the electric vehicle (EV) sector:

1. EV Subsidiary: KEL has expanded into electric vehicles through its subsidiary, Kinetic Watts & Volts Ltd (KWVL), in which it holds a 72.5% equity stake. KWVL has recently relaunched the iconic Kinetic DX electric scooter, marking KEL's re-entry into the two-wheeler market with an electric offering.

2. Battery Manufacturing: Through its associate company Micro Age Instruments (24.9% equity), KEL is venturing into EV battery manufacturing under the Range-X brand, with an annual capacity of 60,000 units.

3. Powertrain Solutions: The group company Kinetic Communication Ltd (0.3% equity) is focused on developing EV powertrain solutions, complementing KEL's EV strategy.

Investor Confidence

The promoter group has demonstrated strong confidence in KEL's future, increasing their shareholding to 61% through a significant capital infusion of ₹160.00 crore via warrants. This move underscores the promoters' commitment to fueling the company's growth initiatives, particularly in the EV segment.

Management Commentary

Ajinkya Firodia, Vice Chairman & Managing Director of Kinetic Engineering Ltd., stated, "While we faced some headwinds in revenue this quarter, our focus on operational efficiency has yielded positive results, as evidenced by our EBITDA growth. We are particularly excited about our strides in the EV segment, which we believe will be a key driver of our future growth."

Conclusion

Despite the revenue challenges in Q1, Kinetic Engineering Limited has demonstrated resilience through improved operational efficiency and strategic initiatives in the EV space. The company's diversified product portfolio, strong OEM relationships, and focus on innovation position it well to navigate the evolving automotive landscape and capitalize on the growing opportunities in the electric vehicle market.

Disclaimer: This article is based on the company's investor presentation and financial results for Q1. Investors are advised to conduct their own research and consult financial advisors before making investment decisions.

Kinetic Engineering Ltd. (KEL) has marked its return to the two-wheeler segment with the launch of the Kinetic DX electric scooter in India, signaling a significant move in the company's strategic direction.

Product Launch Details

The Kinetic DX electric scooter is available in two variants:

• Kinetic DX: Priced at ₹1,11,499
• Kinetic DX+: Priced at ₹1,17,499

Bookings for the scooter are now open with a nominal amount of ₹1,000, and deliveries are scheduled to commence in September 2025.

Production and Sales Targets

KEL has set ambitious targets for its new electric scooter:

• Initial production is limited to 35,000 units
• The company aims to deliver 40,000 units in the first year

Key Features

The Kinetic DX boasts several notable features:

• A 2.6 kWh LFP battery offering a range of 102-116 km
• 37 litres of storage capacity
• Competes with established models like Bajaj Chetak, TVS iQube, and Ather Rizta in the electric scooter market

Corporate Developments

The launch of the Kinetic DX electric scooter is backed by significant corporate developments:

• The scooter is developed by Kinetic's EV subsidiary, KWV
• KWV has received a capital infusion of ₹72.00 crore
• An additional ₹177.00 crore has been committed by promoters

Recent Board Decisions

In a board meeting held on July 28, 2025, Kinetic Engineering Ltd. made several key decisions:

1. Financial Results: The board approved the Unaudited Standalone and Consolidated Financial Results for the quarter ended June 30, 2025.

2. Annual General Meeting: The 54th AGM is scheduled for September 30, 2025, to be held via video conferencing.

3. Appointments:

   • Mr. Bhagwan S Waghmare appointed as Internal Auditor for FY 2025-26
   • Mr. Dinesh Birla appointed as Secretarial Auditor for a five-year term
   • Mr. Shashikant Shivanand Gulve appointed as Additional Non-Executive Non Independent Director

4. Re-appointments:

   • Mr. Jinendra Hirachand Munot re-appointed as Non-Executive Independent Director for a second term of 5 years
   • Mr. Venkataiah Madipalli re-appointed as Non-Executive Independent Director for a second term of 5 years

Market Implications

The launch of the Kinetic DX electric scooter represents a significant step for KEL in the rapidly growing electric vehicle market in India. As the company aims to reclaim its position in the two-wheeler segment, the success of this launch could have substantial implications for Kinetic Engineering's future growth and market share in the evolving automotive landscape.

Investors and industry observers will be keenly watching the market reception of the Kinetic DX and the company's ability to meet its ambitious sales targets in the coming months.