Company Overview

Kennametal India Limited (CIN: L27109KA1964PLC001546) reported outstanding financial performance for FY26 with significant growth across key metrics, alongside important corporate governance developments and future expansion plans.

Financial Performance Highlights

Revenue & Profitability: The company achieved total revenue of ₹15,107 million, representing 29.1% growth over FY25. Profit before tax surged 89.9% to ₹2,663 million, while net profit jumped 91% to ₹1,960 million. Earnings per share reached ₹89.18 (Basic and Diluted), nearly doubling from the previous year's ₹46.82.

Dividend Declaration: The board declared an interim dividend of ₹40 per share (400%) on 2,19,78,240 equity shares, totaling ₹879 million payout. This maintains the same dividend rate as the previous year, reflecting strong cash generation and shareholder returns.

Annual General Meeting Details

The 61st AGM is scheduled for November 13, 2026, at Hotel Taj Yeshwantpur, Bengaluru. Key agenda items include:

  • Approval of audited financial statements for FY26
  • Reappointment of Ms. Kelly Golden Lynch as Non-Executive, Non-Independent Director
  • Ratification of remuneration for cost auditors M/s. K.S. Kamalakara & Co. at ₹400,000 for FY27

E-voting Process: Shareholders can vote electronically through CDSL platform from November 10-12, 2026, with November 6, 2026 as the cut-off date for determining voting rights.

Auditor's Report & Compliance Matters

Price Waterhouse & Co Chartered Accountants LLP issued an unmodified opinion on the financial statements but highlighted two key exceptions:

1. Incomplete maintenance of daily backup on servers physically located in India for certain electronic records

2. Audit trail deficiencies in accounting software regarding user modifications and direct database changes

The auditors confirmed adequate internal financial controls were operating effectively as of June 30, 2026.

Strategic Developments & Investments

Land Acquisition: The company acquired 21.34 acres from Karnataka Industrial Areas Development Board (KIADB) in Tumakuru Machine Tool Park for ₹215 million. While possession was obtained on May 25, 2026, the sale deed execution remains pending with KIADB.

Segment Performance: The Hard Metal Products segment contributed ₹13,636 million (89% of revenue), while Machining Solutions generated ₹1,471 million (11%), demonstrating balanced growth across business lines.

Corporate Structure & Ownership

Capital Structure: Authorized share capital stands at 23,978,240 equity shares of ₹10 each, with issued capital of 21,978,240 shares. Promoters hold 75.23% (Kennametal Inc., USA: 24%; Meturit AG, Switzerland: 51%), with public ownership at 24.77%.

Market Position: As of June 30, 2026, the share price was ₹3,063.85 with market capitalization of ₹67,338.03 million. India Ratings & Research maintained a Long-Term Issuer Rating of "IND AA-" with Stable outlook.

Regulatory & Tax Matters

The company faces disputed income tax claims aggregating ₹138 million for various assessment years, with ₹7 million paid "under protest." The company has generally complied with statutory requirements except for the noted exceptions in books and records maintenance.

Forward Outlook

The strong FY26 performance, combined with strategic investments in new industrial facilities and maintained dividend policy, positions Kennametal India for continued growth in the industrial manufacturing sector while addressing the noted compliance improvements.