Kennametal India Q4 FY26 Results (NSE: KENNAMET)

13 Aug 2026 · Analysis by Alpha Inflection

Signal: Steady quarter

The read

Q4 marked a sharp operating inflection: revenue grew 47.68% YoY and EBITDA grew approximately 161.54%, expanding margin by 1,177bps, led by hard metal products; however, the thesis is tempered by inventory rising 106.45% YoY and operating cash flow falling to (1) million from 1,448 million.

P&L walk

Revenue increased to ₹4,776 million (+47.68% YoY, +18.48% QoQ), while EBITDA grew to approximately ₹1,292 million (+161.54% YoY) and EBITDA margin expanded to 27.1% from 15.3%; PAT reached ₹888 million (+183.71% YoY), supported by operating expansion but accompanied by near-zero operating cash flow.

Segments

Hard metal and hard metal products drove the group, with revenue up 60.57% YoY to 4,474 million and segment result up 207.78% to 1,385 million, while machining solutions revenue fell 32.74% to 302 million and moved from a 34 million profit to a 92 million loss.

Key positives

• Hard metal products revenue reached 4,474 million, up 60.57% YoY, and its segment result rose 207.78% to 1,385 million.
• EBITDA grew approximately 161.54% YoY versus revenue growth of 47.68%, with employee costs up 24.81% and depreciation up only 4.31%; EBITDA margin expanded 1,177bps to 27.1%.
• EPS increased 184.04% to ₹40.39, closely tracking 183.71% PAT growth, while basic and diluted EPS were identical.

Key concerns

• Machining solutions revenue declined 32.74% YoY to 302 million and its segment result turned to a 92 million loss from a 34 million profit.
• Inventory increased 106.45% YoY to 6,088 million and trade receivables increased 41.42% to 2,694 million, contributing to operating cash flow of (1) million versus 1,448 million previously.
• Raw-material cost increased to 47.8% of revenue from 25.8% despite gross-margin expansion, while management cited an unprecedented tungsten environment as a headwind.

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