20% Upper Circuit: Stock Skyrockets After Announcing Q4 Results and Growth Guidance

Synopsis: KDDL Limited reported strong FY26 revenue growth driven by its watch component businesses, while the company remains optimistic about future growth across bracelets, precision engineering, packaging, and Swiss manufacturing segments.

This Small-Cap Stock, engaged in manufacturing watch components, precision engineering products, jewelry packaging solutions, and Swiss watchmaking products for domestic and international markets, hit a 20 percent upper circuit after the company reported its March quarterly results with a 36.90 percent YoY increase in revenue, and also announced a segment-wise Mid-to-Long term outlook.

With a market capitalization of Rs. 3,230.22 crores, the shares of KDDL Limited hit a 20 percent upper circuit of Rs. 2,626.35 per share on Wednesday, up from its previous closing price of Rs. 2,188.65 per share.

Q4 FY26 Result Walkthrough

Coming into the quarterly results of KDDL Limited, the company’s consolidated revenue from operations increased by 36.90 percent YOY, from Rs. 420 crore in Q4 FY25 to Rs. 575 crore in Q4 FY26, and decreased by 3.69 percent QoQ from Rs. 597 crore in Q3 FY26.

In Q4 FY26, KDDL Limited’s consolidated net profit increased by 9.38 percent YOY, reaching Rs. 35 crore compared to Rs. 32 crore during the same period last year. As compared to Q3 FY26, the net profit has decreased by 7.89 percent, from Rs. 38 crore. The basic earnings per share increased by 24.65 percent and stood at Rs. 20.58 as against Rs. 16.51 recorded in the same quarter in the previous year, FY2025.

Annual Performance of FY26

KDDL Limited’s revenue has increased from Rs. 1,648 crore in FY25 to Rs. 2,153 crore in FY26, which has grown by 30.64 percent. The net profit has decreased by 4.93 percent from Rs. 142 crore in FY25 to Rs. 135 crore in FY26.

KDDL Limited’s revenue and net profit have grown at a CAGR of 31.43 percent and 80.74 percent, respectively, over the last five years. In terms of return ratios, the company’s ROCE and ROE stand at 11.2 percent and 8.94 percent, respectively. KDDL Limited has an earnings per share (EPS) of Rs. 71.6, and its debt-to-equity ratio is 0.47x.

Future Outlook

KDDL Limited has a positive mid-to-long term growth outlook across its different business segments. The company expects steady demand growth in its Dials & Hands segment, supported by rising orders from Swiss, Indian, and Japanese watch brands. This segment is expected to grow at around 10-12 percent CAGR over the next five to seven years.

The Bracelets business is also expected to witness strong growth, especially in the Swiss mid-to-high-end watch segment. KDDL is focusing on cost-effective production and reducing dependence on the Indian market. The company estimates this segment could grow at a nearly 20-25 percent CAGR during the coming years.

In the Cases & Related Parts segment, KDDL sees strong opportunities from Swiss market growth and the China+1 manufacturing shift. The company expects this segment to create a revenue opportunity of around Rs. 50-75 crore over the medium term.

The Eigen segment, which focuses on high-precision engineering components for US and European markets, is expected to grow at around 20-25 percent CAGR due to rising demand for complex precision parts. 

Meanwhile, the Ornapac packaging business is projected to create a revenue opportunity of nearly Rs. 80-100 crore, supported by growing demand from global watch and jewellery brands along with increasing focus on sustainable packaging solutions.

Company Overview

KDDL Limited is an Indian public company specializing in the manufacture of watch components and precision-engineered parts. Established in 1981, it has become a key supplier to the global horological and precision engineering industries and also operates luxury retail through its subsidiary, Ethos Limited.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post 20% Upper Circuit: Stock Skyrockets After Announcing Q4 Results and Growth Guidance appeared first on Trade Brains.