Kinetic Engineering Limited (KEL) submitted an investor presentation for Q4 and FY26 pursuant to Regulation 30 of SEBI Listing Regulations.

Financial Performance

Q4 FY26 Consolidated Results:

  • Net Sales: ₹447.3 million (16.1% YoY increase from ₹385.4 million in Q4 FY25)
  • Total Income: ₹447.3 million
  • EBITDA: ₹34.5 million (10.6% YoY increase)
  • EBITDA Margin: 7.7% (compared to 8.1% in Q4 FY25)
  • Adjusted PAT: ₹11.2 million (128.6% YoY increase from ₹4.9 million)
  • Reported PAT: ₹3.6 million (after exceptional item of ₹7.6 million for past service cost due to wage code revision in Gratuity)
  • Reported EPS: ₹0.11

Annual FY26 Consolidated Results:

  • Net Sales: ₹1,664.1 million
  • Total Expenditure: ₹1,526.4 million
  • EBITDA: ₹137.7 million
  • EBITDA Margin: 8.3%
  • Reported Net Profit: ₹8.7 million
  • Reported PAT Margin: 0.6%
  • Reported EPS: ₹0.42

Business Operations and Strategy

KEL operates three key verticals:

1. Transmission Vertical: Gearboxes, Planet Gears, Sun Shafts

2. Driveline Vertical: Spline Yoke, Stub Shaft

3. EV Vertical: Rigid Axles, Trans Axles, Chassis Bodies, 2 Wheeler GB Assembly

The company supplies to major OEMs including Tata Motors, Mahindra, and Ashok Leyland. The auto components business reported revenue of ₹150 crore for the period.

EV Business Expansion through Kinetic Watts & Volts Ltd (KWVL)

  • KWVL is an 84.7% owned subsidiary established in September 2022
  • Launched all-new electric Kinetic DX & DX+ scooters
  • Battery specifications: Range-X 2.6 kWh LFP battery with up to 116 km IDC range (DX+), 4x longer lifecycle (2,500-3,500+ cycles)
  • Charging: 0-50% in 2 hours; 0-100% in 4 hours
  • ₹72 crore already invested in KWV; promoters aiming to further invest ₹177 crore
  • Objective: Establish as top three player in India's electric scooter market
  • 20 dealerships established across India with 30+ additional planned in Q1 FY27

Strategic Partnerships and Initiatives

  • Partnership with Jio Things for connected EV capabilities including voice-assisted vehicle interaction, smart digital instrument clusters, and telematics
  • Launched "Kinetic Lab" - a dedicated Two-Wheeler EV Technical Training Centre
  • Awarded "Viewer's Choice – EV Scooter of the Year" with award presented by Union Minister Nitin Gadkari

Manufacturing and Infrastructure

  • Manufacturing facility spread over 50+ acres in Ahmednagar, Maharashtra
  • Employs 1,000+ people
  • IATF 16949 Certified
  • Infrastructure includes heat treatment, precision machining, forgings, gear cutting, painting & plating

Group Structure and Subsidiaries

1. Kinetic Engineering Ltd (KEL) - Main company

2. Kinetic Communication Ltd (KCL) - Group company (0.3% equity) developing EV powertrain solutions

3. Micro Age Instruments Pvt. Ltd. (MAIPL) - Holding entity (24.9% equity) with EV battery manufacturing under Range-X brand (60,000 units annual capacity)

4. Kinetic Watts & Volts Ltd. (KWVL) - Subsidiary company (84.7% equity) for EV mobility solutions

Promoter Commitment

  • Promoters have infused ₹160 crore through warrants issued on March 27, 2025
  • Issue price: ₹171 per warrant
  • 93,56,725 warrants issued, 11,69,591 converted till date
  • Consistent increase in promoter shareholding reflects confidence in growth trajectory

Future Outlook

  • Expansion into global markets by 2027
  • Launch electric scooters and motorcycles, delivery-focused 2Ws
  • In-house development and IP ownership of motors, controllers, and battery packs
  • Build strategic alliances for battery charging ecosystem
  • Target EBITDA Profitability by FY27
  • Building 500+ strong dealer & service network

Market Context

  • India is world's largest two-wheeler market with ~17 million units sold annually
  • EV 2-wheelers currently hold ~6-7% share (~1.1 million units in FY24)
  • Expected to cross 20-25% by FY30
  • Projected Market Size in FY28: ~4.48 million units (assuming 35% CAGR)