KDDL Ltd-$ — Q4 FY26 earnings call
Summary generated by AI from the official transcript KDDL Ltd-$ filed with BSE on 26 May 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
KDDL reported standalone Q4 FY26 total income of Rs 145.3 crore, up about 42% year-on-year, and full-year FY26 revenue of Rs 506 crore, up 31.9%. Consolidated full-year revenue was Rs 2,207.8 crore, up 30.3%, with EBITDA of Rs 363 crore. Management described a recovery across the watch components, Precision Engineering (Eigen) and Packaging (Ornapac) divisions, and noted continued growth at Ethos and the Favre-Leuba brand under Silvercity Brands.
1 statement from this call is not shown because its supporting quote could not be reproduced within our quoting limits. Nothing shown here is affected: every statement on this page carries its verified quote.
Numbers mentioned
Standalone total income: INR145.3 crores (Q4 FY26)
p. 5
“Total Page 5 of 22 income for Q4FY26 stood at INR145.3 crores, and it grew by almost 42% Y-o-Y over the last year same period.”
Sanjeev Masown, page 5 of the filed PDF · View the filing
Standalone revenue: INR506 crores (FY26)
p. 6
“And for the full year, the revenue was INR506 crores, and which grew by almost 31.9%.”
Sanjeev Masown, page 6 of the filed PDF · View the filing
Standalone EBITDA: INR36.4 crores (Q4 FY26)
p. 6
“EBITDA for the Q4FY26 was at INR36.4 crores, and it grew by 87.6% Y-o-Y.”
Sanjeev Masown, page 6 of the filed PDF · View the filing
Standalone EBITDA: INR116.9 crores (FY26)
p. 6
“While for the full year FY26, the EBITDA was INR116.9 crores, representing a growth of 32.2% Y-o-Y.”
Sanjeev Masown, page 6 of the filed PDF · View the filing
Standalone EBITDA margin: 25.1% (Q4 FY26)
p. 6
“EBITDA margin for Q4FY26 was ever highest at 25.1%, and for the full year, EBITDA is 23.1%.”
Sanjeev Masown, page 6 of the filed PDF · View the filing
Standalone PAT: INR19.8 crores (Q4 FY26)
p. 6
“PAT for Q4FY26 stood at INR19.8 crores, with a PAT margin of 13.6%.”
Sanjeev Masown, page 6 of the filed PDF · View the filing
Standalone PAT: INR76.6 crores (FY26)
p. 6
“And for the full year FY26, PAT stood at INR76.6 crores with a margin of 15.1%.”
Sanjeev Masown, page 6 of the filed PDF · View the filing
Standalone capex: approximately INR34 crores (FY26)
p. 6
“During the year, the company invested approximately INR34 crores for the capex in the various divisions.”
Sanjeev Masown, page 6 of the filed PDF · View the filing
Consolidated total income: almost INR585 crores (Q4 FY26)
p. 6
“Total income for the Q4FY26was at almost INR585 crores, and it grew by almost 35.6% Y-o-Y.”
Sanjeev Masown, page 6 of the filed PDF · View the filing
Consolidated revenue: INR2,207.8 crores (FY26)
p. 6
“And for the full year FY26, the revenue was INR2,207.8 crores, and it grew by almost 30.3%.”
Sanjeev Masown, page 6 of the filed PDF · View the filing
Consolidated EBITDA: INR95 crores (Q4 FY26)
p. 6
“EBITDA for the Q4FY26stood at INR95 crores, growing by 25.2% Y-o-Y.”
Sanjeev Masown, page 6 of the filed PDF · View the filing
Consolidated EBITDA: INR363 crores (FY26)
p. 6
“While for the full year, EBITDA was at INR363 crores, representing 18.3% growth over the previous year.”
Sanjeev Masown, page 6 of the filed PDF · View the filing
Consolidated EBITDA margin: 16.3% (Q4 FY26)
p. 6
“EBITDA margins for Q4FY26 at a consolidated level was 16.3% and for the full year, almost at a similar level of 16.4%.”
Sanjeev Masown, page 6 of the filed PDF · View the filing
Consolidated PAT: INR34.5 crores (Q4 FY26)
p. 6
“PAT for Q4FY26 was at INR34.5 crores with a PAT margin of 5.9%.”
Sanjeev Masown, page 6 of the filed PDF · View the filing
Consolidated PAT: INR135.2 crores (FY26)
p. 6
“And for the full year, PAT was at INR135.2 crores with a margin of 6.1%.”
Sanjeev Masown, page 6 of the filed PDF · View the filing
Watch component business revenue (excl. Ethos): almost INR240 crores (FY26)
p. 6
“the watch component business in the manufacturing reported revenue of almost INR240 crores as compared to INR200 crores in the previous year.”
Sanjeev Masown, page 6 of the filed PDF · View the filing
Precision Engineering (Eigen) revenue: INR200 crores (FY26)
p. 6
“In the Precision Engineering business, the revenue during the year is INR200 crores compared to the previous year revenue of INR147 crores, reflecting a growth of 35% plus Y-o-Y.”
Sanjeev Masown, page 6 of the filed PDF · View the filing
Ornapac (Packaging) revenue: INR23 crores (FY26)
p. 6
“Ornapac, where the base is much lower, the last year revenue was around INR17 crores and during the current year, we reported INR23 crores, representing a growth of almost 37%.”
Sanjeev Masown, page 6 of the filed PDF · View the filing
Bracelet division revenue: Around INR40 crores (FY26)
p. 6
“Around INR40 crores.”
Sanjeev Masson, page 6 of the filed PDF · View the filing
Bracelet division capacity utilization: 75% to 80% (FY26)
p. 13
“Capacity utilization on the capacity that was existing was about 75% to 80% this year.”
Yashovardhan Saboo, page 13 of the filed PDF · View the filing
Ethos inventory days: from nearly 247 days to 221 days at cost
p. 15
“We've gone from nearly 247 days of inventory to 221 days at cost, right?”
Pranav Saboo, page 15 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
FY27 planned capex — approximately INR50 crores · FY27
stated firmly by Yashovardhan Saboo
p. 5
“From an overall capital allocation perspective, we have planned capex of approximately INR50 crores across businesses during FY27.”
Yashovardhan Saboo, page 5 of the filed PDF · View the filing
Watch component export business (H1 FY27) — relatively stable · H1 FY27
stated conditionally by Yashovardhan Saboo
p. 4
“we expect H1 FY27, that is this year, to remain relatively stable for the export-oriented business, with growth being more visible during the second half of the year.”
Yashovardhan Saboo, page 4 of the filed PDF · View the filing
Bracelets and Precision Engineering revenue growth — about 25% CAGR · medium to long term
stated conditionally by Yashovardhan Saboo
p. 7
“So for Bracelets and for Precision Engineering, we believe medium term to long term, we find it hard to predict as to what's going to happen in 1 quarter or 2 quarters. But in the medium and long term, both these businesses we believe they will grow at about 25% CAGR.”
Yashovardhan Saboo, page 7 of the filed PDF · View the filing
Ornapac (Packaging) profitability — profitable · second half of current financial year
stated firmly by Yashovardhan Saboo
p. 5
“While the business currently is showing a loss at its ramp-up stage, we expect the division to become profitable during the second half of the current financial year.”
Yashovardhan Saboo, page 5 of the filed PDF · View the filing
Favre-Leuba sales — more than double · FY27
stated firmly by Yashovardhan Saboo
p. 5
“We expect to more than double the sales in FY27 and greatly expand our global footprint with exciting new product launches.”
Yashovardhan Saboo, page 5 of the filed PDF · View the filing
Bracelet division capacity — 110,000 to 120,000 units · next 12 months
stated firmly by Yashovardhan Saboo
p. 18
“I think we are going to expand from the current or from the original level of about 75,000 over the next 12 months to about 110,000 to 120,000.”
Yashovardhan Saboo, page 18 of the filed PDF · View the filing
Ethos boutique network — double the network · next 3 years
stated as an aspiration by Pranav Saboo
p. 15
“My goal is to double the network in the next 3 years.”
Pranav Saboo, page 15 of the filed PDF · View the filing
Ethos revenue growth (10x vision) — 25.9% or 26% CAGR · 10 years from listing
stated as an aspiration by Pranav Saboo
p. 10
“As I had mentioned that we are at the time that we listed the company, we had mentioned our goal of growing 10x in 10 years.”
Pranav Saboo, page 10 of the filed PDF · View the filing
Ethos revenue growth and margin band — 20% to 25% revenue growth
stated as an aspiration by Yashovardhan Saboo
p. 22
“As I mentioned in my speech, we expect revenues grow 20% to 25%.”
Yashovardhan Saboo, page 22 of the filed PDF · View the filing
Ethos margin profile — within a closed band
stated as an aspiration by Yashovardhan Saboo
p. 22
“We expect margins profile to remain within a closed band.”
Yashovardhan Saboo, page 22 of the filed PDF · View the filing
Ethos gross margin / currency pass-through — 7%-8% improvement
stated conditionally by Pranav Saboo
p. 20
“But yes, 7%- 8% will happen now dependeven if the Swiss Franc doesn't move anymore.”
Pranav Saboo, page 20 of the filed PDF · View the filing
KDDL standalone margin picture — this year
stated conditionally by Yashovardhan Saboo
p. 8
“What we can say is that we do not expect any great change in the margin picture over this year.”
Yashovardhan Saboo, page 8 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Bracelet revenue is separate from the INR240 crore watch component figure, at around INR40 crore.
Answered by Sanjeev Masson
Asked by Pritesh Chheda: What is the bracelet division's revenue separate from the watch component business?
p. 6
“Around INR40 crores.”
Sanjeev Masson, page 6 of the filed PDF · View the filing
Management said peak utilization is hard to define since capability and capacity expand incrementally, and gave a medium-to-long-term growth outlook instead.
Answered by Yashovardhan Saboo
Asked by Pritesh Chheda: What is the peak revenue potential of the packaging and bracelet capacities, and outlook for precision components growth?
p. 7
“So it's a little bit hard for us to sort of define what is the peak utilization because both capabilities and capacity in our kind of businesses, they expand incrementally.”
Yashovardhan Saboo, page 7 of the filed PDF · View the filing
Management said volumes across products are too disparate to combine meaningfully and the company tracks value, not units.
Answered by Yashovardhan Saboo
Asked by Kunal: What was volume growth versus value growth in the standalone division?
p. 9
“I'm saying that because the volumes are so disparate, it doesn't make sense for us to combine them.”
Yashovardhan Saboo, page 9 of the filed PDF · View the filing
Management clarified the capex is for the standalone business only, covering bracelets, watch components, precision engineering and packaging, and excludes subsidiary investments like Favre-Leuba.
Answered by Yashovardhan Saboo
Asked by Kunal: Does the INR50 crore capex cover Favre-Leuba as well?
p. 9
“As far as the capex is concerned, the INR50 crores that I mentioned is in the standalone business.”
Yashovardhan Saboo, page 9 of the filed PDF · View the filing
The CFO confirmed the CHF strength contributed to margin gains over the full year, though it is difficult to quantify precisely.
Answered by Sanjeev Masown
Asked by Yash Sonthaliya: Is the recent standalone EBITDA margin jump partly due to currency movements?
p. 12
“But I think going forward also it is expected to remain at similar levels or the strong level.”
Sanjeev Masown, page 12 of the filed PDF · View the filing
Management said utilization on existing capacity was about 75-80% this year and that they are adding new customers alongside capacity.
Answered by Yashovardhan Saboo
Asked by Ajay Suriya: What is the capacity utilization and customer base for the bracelet division?
p. 13
“So let me answer your questions on the bracelets. We are adding new customers.”
Yashovardhan Saboo, page 13 of the filed PDF · View the filing
Pranav Saboo said margin improvement depends partly on currency stabilization and that the company remains in a multi-year investment cycle before margins improve meaningfully.
Answered by Pranav Saboo
Asked by Devanshu Bansal: Is the worst behind Ethos from a margin perspective given last year's aggressive store expansion?
p. 15
“I do believe from a margin perspective, a little bit depends upon currency fluctuation.”
Pranav Saboo, page 15 of the filed PDF · View the filing
Pranav Saboo said there is room for roughly 7-8% further price pass-through, which takes time because pricing changes are industry-wide and infrequent.
Answered by Pranav Saboo
Asked by Prateek: How much of the CHF appreciation has been passed on to prices and how much remains?
p. 20
“I think averagely, there is a room for improvement of 7%,- 8% easily over there right now.”
Pranav Saboo, page 20 of the filed PDF · View the filing
Management confirmed the company has only used the company-owned, company-operated model so far and is not ruling out other models in future.
Answered by Yashovardhan Saboo
Asked by Shreyans: Is Ethos expansion only company-owned stores or also franchised?
p. 22
“We have not done anything other than COCO.”
Yashovardhan Saboo, page 22 of the filed PDF · View the filing
Management said EV, energy storage and electronic components are showing the strongest momentum currently.
Answered by Yashovardhan Saboo
Asked by Naman: Which precision engineering end-segments are seeing the fastest growth?
p. 21
“Our focus, because of the momentum that we are getting, is in the EV, the energy storage and the electronic components.”
Yashovardhan Saboo, page 21 of the filed PDF · View the filing
Risks flagged
Weak consumer demand in key luxury watch markets, particularly China and parts of Europe
p. 3
“weak consumer demand in key luxury markets, particularly China and certain parts of Europe, continue to weigh on industry growth”
Yashovardhan Saboo, page 3 of the filed PDF · View the filing
Global brands remaining cautious on inventory and procurement decisions amid macro uncertainty
p. 3
“global brands remained cautious inventory planning and procurement decisions amid uncertain macroeconomic conditions.”
Yashovardhan Saboo, page 3 of the filed PDF · View the filing
Margins in the bracelet division may be moderated due to lower price points of newer customers
p. 4
“though margins may be moderated in the near term due to lower price points of newer customers, which are fueling growth.”
Yashovardhan Saboo, page 4 of the filed PDF · View the filing
Packaging division currently loss-making at ramp-up stage
p. 5
“While the business currently is showing a loss at its ramp-up stage, we expect the division to become profitable during the second half of the current financial year.”
Yashovardhan Saboo, page 5 of the filed PDF · View the filing
Global demand drop leading customers to correct stocking, inventory and purchases
p. 14
“then everyone starts to make corrections in their stocking, in their inventory and their purchases.”
Yashovardhan Saboo, page 14 of the filed PDF · View the filing
Difficulty for Indian factories to match the scale of larger Chinese plants
p. 16
“it's not easy for Indian factories to match the scale of China.”
Yashovardhan Saboo, page 16 of the filed PDF · View the filing
Higher cost inflation in India relative to export markets pressuring operating leverage
p. 22
“costs in India escalate much faster, which is one reason why the Indian rupee keeps depreciating.”
Yashovardhan Saboo, page 22 of the filed PDF · View the filing
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