KDDL Limited – Investor Presentation Summary

Key Operational Highlights

  • Over 40 years of excellence in watch components and precision manufacturing
  • Among the largest independent dial and hand manufacturers serving global luxury brands
  • Operations across India and Switzerland, serving top International brands
  • Exports contribute significantly to revenue, supported by long-standing OEM partnerships
  • Focus on artisanal, high-value products – stone dials, enamel work, gold hands
  • Continuous investment in automation, design, and sustainability

Key drivers of operational performance: Rising demand from Japanese and Swiss brands, growth in handcrafted & enamel work, cost-effective production, high precision complex parts for various segments.

Segment-wise Performance

Business Segments and Mid-to-Long Term Outlook:

  • Dials & Hands: Focus on Swiss, Indian, and Japanese brands. Estimated growth: ~10–12% CAGR driven by rising demand from Japanese brands and growth in handcrafted & enamel work
  • Bracelets: Focus on Swiss mid-to-high-end segment. Estimated growth: ~20–25% CAGR driven by growing Swiss demand and cost-effective production
  • Cases & Related Parts: Focus on Swiss mid-end market (China+1 opportunity). Estimated opportunity: ₹50–75 Cr driven by strong Swiss growth and localization
  • EIGEN: Focus on US & European Markets. Estimated growth: ~20-25% CAGR for high precision, complex parts for various segments
  • Ornapac (Packaging): Focus on Domestic (watches, jewelry) & Exports. Estimated opportunity: ₹80–100 Cr driven by high export potential with Swiss watch & global jewelry brands and sustainability trend
  • Swiss Manufacturing: Focus on Swiss high-end & mid-end brands. Premium niche growth potential for high-value niche products

Explanation of significant changes in segment performance: Growth across segments driven by strong demand from international markets, particularly Swiss and Japanese brands, and cost-competitive manufacturing capabilities.

Financial Highlights

Standalone Performance (Q2FY27):

  • Revenue: ₹172.9 Cr (41.0% YoY growth)
  • EBITDA: ₹39.4 Cr (36.3% YoY growth)
  • PAT: ₹21.8 Cr (50.6% YoY growth)
  • EPS: ₹17.69
  • Margins: Gross Profit Margin 70.9%, EBITDA Margin 22.6%, PAT Margin 12.5%

Standalone Performance (H1FY27):

  • Revenue: ₹326.8 Cr (40.4% YoY growth)
  • EBITDA: ₹75.2 Cr (38.4% YoY growth)
  • PAT: ₹41.3 Cr (56.6% YoY growth)
  • EPS: ₹33.55
  • Margins: Gross Profit Margin 72.3%, EBITDA Margin 22.9%, PAT Margin 12.5%

Consolidated Performance (Q2FY27):

  • Revenue: ₹685.3 Cr (32.6% YoY growth)
  • EBITDA: ₹112.1 Cr (29.8% YoY growth)
  • PAT: ₹48.2 Cr (47.5% YoY growth)
  • EPS: ₹27.59
  • Margins: Gross Profit Margin 42.4%, EBITDA Margin 16.0%, PAT Margin 6.9%

Consolidated Performance (H1FY27):

  • Revenue: ₹1,319.1 Cr (34.4% YoY growth)
  • EBITDA: ₹220.5 Cr (32.3% YoY growth)
  • PAT: ₹92.9 Cr (49.0% YoY growth)
  • EPS: ₹51.45
  • Margins: Gross Profit Margin 42.9%, EBITDA Margin 16.4%, PAT Margin 6.9%

Drivers of financial performance: Higher revenue growth across business segments, operational efficiencies, and expanding export footprint.

Geographical Revenue Split

Not Specified

Balance Sheet Snapshot

Standalone (September 2026):

  • Total Assets: ₹690.5 Cr
  • Equity: ₹413.9 Cr
  • Non-current liabilities: ₹91.9 Cr
  • Current liabilities: ₹184.7 Cr
  • Inventories: ₹97.4 Cr
  • Trade receivables: ₹138.6 Cr
  • Cash and cash equivalents: ₹6.9 Cr
  • Net Debt/Equity: Not Specified

Consolidated (September 2026):

  • Total Assets: ₹3,041.3 Cr
  • Equity: ₹1,981.8 Cr
  • Non-current liabilities: ₹486.7 Cr
  • Current liabilities: ₹572.8 Cr
  • Inventories: ₹940.7 Cr
  • Trade receivables: ₹162.2 Cr
  • Cash and cash equivalents: ₹189.0 Cr
  • Other bank balances: ₹248.6 Cr
  • Net Debt/Equity: Not Specified

Financial Health Insights: Strong asset base growth, increased inventory levels supporting business expansion, healthy cash positions.

Capex & Cash Flow Health

Standalone Capex:

  • Capital work-in-progress: ₹11.4 Cr (September 2026) vs ₹3.9 Cr (March 2026)
  • Property, plant and equipment: ₹157.8 Cr (September 2026) vs ₹148.7 Cr (March 2026)

Consolidated Capex:

  • Capital work-in-progress: ₹42.1 Cr (September 2026) vs ₹21.9 Cr (March 2026)
  • Property, plant and equipment: ₹393.7 Cr (September 2026) vs ₹374.8 Cr (March 2026)

Free Cash Flow: Not Specified

Operating Cash Flow: Not Specified

Net Debt Movement: Not Specified

Investment Rationale: Focus on capacity expansion, technology upgrades, and automation investments across manufacturing facilities.

Strategic & R&D Initiatives

Investments in Innovation: Continuous investment in automation, design, and sustainability. Focus on artisanal, high-value products including stone dials, enamel work, and gold hands.

Expected impact on growth: Product innovations expected to drive premium segment growth and market share gains in international markets.

Strategic Rationale: Expanding into high-growth markets, reducing operational costs through automation, and leveraging integrated manufacturing capabilities across business segments.

Industry Trends & Business Environment

Macro/Industry Trends: Rising demand from Japanese and Swiss watch brands, China+1 manufacturing opportunity, growing demand for sustainable packaging, increasing preference for high-precision components in automotive and aerospace sectors.

Impact on Company: Positive impact on order book across business segments, particularly in Swiss watch components and precision engineering divisions. Sustainability trends driving packaging business opportunities.

Management Commentary & Growth Outlook

Strategic Outlook: Company positioned for steady growth with expanding export footprint and operating leverage. Strong synergies across divisions enabling integrated value creation.

FY Guidance: Provided mid-to-long term segment outlook with estimated CAGRs of 10-25% across business segments and specific revenue opportunities of ₹50-100 Cr in cases and packaging businesses.

Market Share Targets: Not Specified

Risks and Opportunities: Not Specified in the presentation

Subsidiary Structure

  • Ethos Limited (50.11%): Retails premium and luxury watches
  • Mahen Distribution Limited (100% WOS): Distributes luxury lifestyle products and provides manpower services
  • Pylania SA (100% WOS): Trading and manufacturing watch components
  • Estima AG (100% WOS): Specializes in watch hands and dials
  • Kamla Int. Holdings SA (100% WOS): Functions as a special purpose vehicle and holding company
  • Silvercity Brands AG (93.08%): Business of premium luxury watches under brand 'Favre Leuba'
  • Artisan Watch Products Pvt. Ltd. (80%): Manufacturing of Artisanal Dials