Financial Performance Overview
KDDL Limited reported strong financial results for FY 2025-26 with standalone revenue growth of 31.6% to ₹504.8 Crores and net profit increase of 56% to ₹76.6 Crores. The company's total income reached ₹524.06 Crores, while profit before tax grew 64.1% to ₹96.46 Crores. On a consolidated basis, the Group reported revenue of ₹21,534.31 Crores and profit after tax of ₹1,351.77 Crores.
Business Segment Performance
The company operates across three main segments: precision/watch components (55.3% of revenue, 31.3% growth), luxury retail through Ethos Limited, and packaging. The precision engineering business (Eigen) contributed 39.4% of revenue with 35.6% growth, while the bracelet division achieved 75% utilization after commissioning in October 2024. The packaging division grew 37.3% with the new Panchkula facility operational.
Dividend and Capital Structure
The Board recommended a final dividend of ₹8 per share, following an interim dividend of ₹15 per share already paid, resulting in total dividends of ₹23 per share for FY26. The company maintained a strong capital structure with debt-to-equity ratio of 0.29 times and return on net worth of 25.1%. Paid-up share capital remained at ₹12.30 Crores with promoters holding 50.43% stake.
Subsidiary Performance
Ethos Limited, the luxury retail subsidiary, achieved record sales of ₹1,653.12 Crores (29.5% growth) and expanded to 94 boutiques across 30 cities. Other subsidiaries including Pylania SA (43% revenue growth), Silvercity Brands AG, and Estima AG showed mixed performance. The Group completed a rights issue in Ethos Limited raising ₹4,099.05 Crores and acquired 80% stake in Artisan Watch Products Private Limited.
Operational Highlights and Expansion
The company expanded manufacturing capabilities with additional ~30,000 sq. ft. facility in Bengaluru expected operational in 2026-27. The bracelet division reached installed capacity of ~75,000 units per annum while the packaging unit achieved capacity of 1,00,000 premium boxes per month. The company operates 9 manufacturing plants across India.
Regulatory Compliance and Governance
Auditors issued an unqualified opinion confirming proper maintenance of records and compliance with Companies Act 2013. The company faces regulatory matters including BSE SOP fine for delayed submission and tax disputes totaling ₹263.66 Crores. Board changes occurred with three directors ceasing during the year. The 46th AGM is scheduled for 15th September 2026.
Forward Outlook
Management expects watch component exports to recover gradually while domestic watch market sustains growth trajectory. Precision engineering revenue is expected to grow steadily, and packaging division targets over 25% growth. The company continues focus on premiumisation and value-added products across all business segments.