Nature of the Disclosure

This document is a transcript of the Q4 FY26 Earnings Conference Call for KDDL Limited, held on May 20, 2026, and filed as a regulatory disclosure under SEBI LODR Regulation 30. The call was hosted by management to discuss the company's operational and financial performance for the quarter and full year ended March 31, 2026.

Key Quantitative Figures - Standalone (KDDL)

Q4 FY26 Performance:

  • Total Income: INR 145.3 crores (42% YoY growth)
  • EBITDA: INR 36.4 crores (87.6% YoY growth)
  • EBITDA Margin: 25.1%
  • PAT: INR 19.8 crores
  • PAT Margin: 13.6%

Full Year FY26 Performance:

  • Total Income: INR 506 crores (31.9% YoY growth)
  • EBITDA: INR 116.9 crores (32.2% YoY growth)
  • EBITDA Margin: 23.1%
  • PAT: INR 76.6 crores
  • PAT Margin: 15.1%
  • Capex Invested: Approximately INR 34 crores

Key Quantitative Figures - Consolidated (Including Subsidiaries)

Q4 FY26 Performance:

  • Total Income: INR 585 crores (35.6% YoY growth)
  • EBITDA: INR 95 crores (25.2% YoY growth)
  • EBITDA Margin: 16.3%
  • PAT: INR 34.5 crores
  • PAT Margin: 5.9%

Full Year FY26 Performance:

  • Total Income: INR 2,207.8 crores (30.3% YoY growth)
  • EBITDA: INR 363 crores (18.3% YoY growth)
  • EBITDA Margin: 16.4%
  • PAT: INR 135.2 crores
  • PAT Margin: 6.1%

Divisional Revenue Breakdown (Ex-Ethos)

  • Watch Component Business: ~INR 240 crores (from INR 200 crores in FY25, ~20% growth)
  • Precision Engineering (Eigen): ~INR 200 crores (from INR 147 crores in FY25, >35% growth)
  • Packaging (Ornapac): ~INR 23 crores (from ~INR 17 crores in FY25, ~37% growth)
  • Bracelets Division: ~INR 40 crores (disclosed separately during Q&A)

Strategic and Operational Updates

Watch Components Business (Dials, Hands):

  • Experienced a recovery in H2 FY26 after a quiet first half.
  • Expects H1 FY27 to remain stable for exports, with growth more visible in H2.
  • Domestic business expected to remain robust.
  • Intensified customer diversification efforts beyond Switzerland.

Bracelets Division:

  • Delivering strong performance driven by export business.
  • Not covered under 'Swissness' criteria, providing a long-term manufacturing advantage in India.
  • Current capacity utilization is 75-80%.
  • Expects good revenue growth in FY27 and FY28, though margins may moderate due to lower price points from newer customers.
  • Planning to expand capacity from ~75,000 units to 110,000-120,000 units over the next 12 months.

Precision Engineering (Eigen):

  • Extremely successful year with >35% revenue growth to ~INR 200 crores.
  • Primary focus remains on export markets.
  • Strategy involves deepening existing customer relationships, adding new customers, and expanding capabilities.
  • Undertaking expansion with backward integration (bringing plating process in-house) and process enhancement.
  • Targeting a medium to long-term CAGR of ~25%.

Packaging (Ornapac):

  • Revenue grew >35% YoY.
  • Growth primarily focused on domestic needs of international brands.
  • Business is currently at a loss during its ramp-up stage but is expected to become profitable in H2 FY27.

Silvercity Brands / Favre-Leuba:

  • Owns and operates the Favre-Leuba brand in Switzerland.
  • Present in over 20 countries with more than 80 points of sale.
  • FY26 sales were better than expected, with many stores short of stock.
  • Expects to more than double sales in FY27 and expand global footprint.

Ethos Limited (Subsidiary):

  • Declared its results a week prior to this call.
  • Has crossed 100 boutiques.
  • Aims to double its boutique network in the next 3 years.
  • Committed to a vision of 10x revenue growth in 10 years (~26% CAGR).
  • Working on a new retail format for watches in the INR 25,000 to INR 2 lakh price point.

Capital Allocation and Guidance

  • Planned capex for FY27 is approximately INR 50 crores across all businesses (standalone). This includes maintenance and growth-oriented investments for capability strengthening and efficiency improvements.
  • The company expects a medium to long-term CAGR of ~25% for its Precision Engineering, Bracelets, and Packaging divisions.
  • The margin profile across businesses is expected to remain stable within a band; no great changes are anticipated for FY27.

Q&A Highlights

  • The strong CHF (Swiss Franc) benefited the export-oriented standalone business. At the consolidated level, forex gains in KDDL were largely netted off by forex losses in the import-heavy Ethos business.
  • The company does not guide on volume growth, preferring to focus on value growth due to the highly disparate nature of its products (from INR 0.02 to INR 200 per component).
  • For the Precision Engineering business, growth is expected from deepening relationships with existing customers in sectors like EV, energy storage, and electronics, adding new customers, and expanding capabilities.
  • The company is exploring new markets for watch components beyond Switzerland, including Germany, France, UK, USA, and Japan.