KDDL Limited Releases Q4 FY26 Earnings Call Transcript

KDDL Limited has released the transcript of its earnings call held on May 20, 2026, to discuss the company's operational and financial performance for the fourth quarter and full fiscal year 2026. The call featured insights from Chairman and Managing Director Mr. Yashovardhan Saboo, CFO and Executive Director Mr. Sanjeev Masown, and Pranav Saboo, Managing Director and CEO of Ethos Limited.

Mr. Saboo highlighted a strong recovery in FY26, exceeding expectations despite a challenging global economic and watch industry environment. He noted that while global luxury markets faced headwinds, India's domestic market remained encouraging with rising premiumization and localization. The watch components business (dials and hands) showed recovery in the second half of FY26, with stable exports expected in H1 FY27 and robust domestic growth. The Bracelet division also delivered strong performance driven by exports, with expected good revenue growth in FY27 and FY28, though margins may be moderated by new, lower-priced customers.

The Precision Engineering division (Eigen) had a successful FY26, with revenue growing over 35% year-on-year to around ₹200 crore, driven by strong export momentum. Future strategy includes deepening customer relationships, adding new customers, and selective capability expansion with backward integration and capacity additions. The Packaging division (Ornapac) also saw revenue growth of over 35% in FY26, primarily serving domestic needs of international brands, and is expected to become profitable in H2 FY27.

Ethos Limited reported a record performance, with significant growth in stores, sales, and profit. The Favre-Leuba brand, owned by Silvercity Brands in Switzerland, showed strong market success with sales exceeding expectations and stores facing stock shortages. KDDL plans to more than double Favre-Leuba sales in FY27 and expand its global footprint. The company has planned a capital expenditure of approximately ₹50 crore across businesses for FY27.

Financially, on a standalone basis, Q4 FY26 total income grew by 42% year-on-year to ₹145.3 crore, with full-year revenue at ₹506 crore (up 31.9%). EBITDA for Q4 FY26 grew by 87.6% to ₹36.4 crore, and for the full year, it was ₹116.9 crore (up 32.2%). PAT for Q4 FY26 stood at ₹19.8 crore, and for the full year, it was ₹76.6 crore.

On a consolidated basis, Q4 FY26 total income grew by 35.6% year-on-year to ₹585 crore, with full-year revenue at ₹2,207.8 crore (up 30.3%). Consolidated EBITDA for Q4 FY26 was ₹95 crore (up 25.2%), and for the full year, it was ₹363 crore (up 18.3%). Consolidated PAT for Q4 FY26 was ₹34.5 crore, and for the full year, it was ₹135.2 crore.

During the Q&A session, management discussed growth prospects for Precision Engineering, Packaging, and Bracelet divisions, expecting around 25% CAGR for Precision Engineering and Bracelets in the medium to long term. They also addressed margin stability, capex plans, and the strategy for expanding the Ethos retail network and representing luxury watch brands.