KDDL Ltd Q1 FY27 Results (NSE: KDDL)
Signal: Margin expansion
The read
The key inflection is consolidated EBITDA margin rising to 17.1% from 15% in both Q1FY26 and Q4FY26 while revenue grew 36.3% YoY; precision components delivered 62.2% segment-result growth, but earnings quality requires scrutiny because other income was 21.3% of PBT and ₹1,539 lakh of profit accrued to non-controlling interests.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹633.8 Cr | +36.3% | +10.2% |
| EBIT | ₹73.64 Cr | N/A | |
| Net profit | ₹29.36 Cr | +43.7% | |
| EPS | ₹23.87 | +43.7% | |
| EBIT margin | 17.1% |
P&L walk
Revenue rose to ₹63,380 lakh, +36.3% YoY and +10.2% QoQ, with EBITDA margin improving to 17.1% from 15%; owner PAT increased 43.7% to ₹2,936 lakh, although 21.3% of PBT came from other income and subsidiaries outside the parent contributed materially to group earnings.
Segments
Luxury watches, accessories and related services remained the largest driver at ₹46,655 lakh revenue, +34.3% YoY, while precision components grew faster at ₹16,072 lakh, +43.9% YoY and segment result of ₹3,595 lakh, +62.2%; the Others segment remained loss-making at -₹106 lakh versus -₹83 lakh YoY.
Key positives
- Consolidated revenue reached ₹63,380 lakh, +36.3% YoY and +10.2% QoQ, extending the recent acceleration from +29.2% in Q1FY26 to +36.3% currently.
- EBITDA margin expanded to 17.1% from 15% YoY and QoQ, reversing the 14-15% margin band seen across the preceding four quarters.
- Precision and watch components segment result rose 62.2% YoY to ₹3,595 lakh, materially outpacing segment revenue growth of 43.9%.
- EPS rose 43.7% YoY to ₹23.87, exactly tracking owner PAT growth and showing no dilution signal in this quarter.
Key concerns
- Other income of ₹1,322 lakh represented 21.3% of consolidated PBT of ₹6,196 lakh, making the 43.7% owner-PAT growth less purely operating than the EBITDA improvement.
- The Others segment remained loss-making at -₹106 lakh, worsening from -₹83 lakh YoY despite revenue of ₹652 lakh.
- Consolidated results include ₹1,539 lakh attributable to non-controlling interests versus owner PAT of ₹2,936 lakh, so group profit growth does not accrue entirely to KDDL shareholders.
- Employee benefits expense rose 39.8% YoY to ₹8,369 lakh, slightly faster than consolidated revenue growth of 36.3%.
Earnings quality: includes non-operating other income
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