KDDL Limited has significantly increased its shareholding in subsidiary Artisan Watch Products Private Limited to 80% through a strategic investment of ₹2.40 crores. The acquisition was completed through subscription to the subsidiary's rights issue, marking a key expansion in the company's watch manufacturing operations.

Transaction Details

The investment involved subscription to 24,00,000 equity shares at a par value of ₹10 each, totaling ₹2.40 crores in cash consideration. Following this acquisition, KDDL now holds 40,00,000 equity shares, representing 80% ownership in Artisan Watch Products Private Limited.

Subsidiary Profile

Artisan Watch Products Private Limited was incorporated on March 19, 2025, and operates in the watch products industry. The subsidiary has an authorized share capital of ₹5 crores, divided into 50,00,000 equity shares of ₹10 each. The company has recently commenced commercial operations and currently reports a turnover of ₹3.61 lakh.

Strategic Implications

The acquisition strengthens KDDL's presence in the watch manufacturing segment through its subsidiary operations. The transaction was conducted on an arm's length basis, with promoter Yashovardhan Saboo holding a 20% stake in the subsidiary company. This investment demonstrates KDDL's commitment to expanding its business operations in the consumer durables sector.

Regulatory Compliance

The transaction was disclosed under Regulation 30 of SEBI Listing Regulations, with no additional governmental or regulatory approvals required for completion. The cash-based acquisition represents a strategic move to consolidate control in the subsidiary's operations as it begins its commercial journey in the watch products market.

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.