Kinetic Engineering Ltd

Business overview

• KWVL formed in 2022 to drive the group's EV platform strategy.
• Range-X battery project supports 60,000 units/year capacity at MAIPL.
• Promoter warrants contributed over Rs 100 Cr for growth.
• EV drivetrain and components targeted for 2W/3W OEM opportunities.

Operational highlights

• Launched all-new electric Kinetic DX via KWVL with Range-X battery.
• Partnership with Jio Things for IoT-enabled connected EV features.
• Kinetic Lab training center inaugurated to upskill EV technicians.
• LOI with 100+ dealers; network target 70–100 by FY27.

Financial performance & leverage

• FY26 net sales Rs 1,577.5 Mn; EBITDA Rs 137.7 Mn.
• EBITDA margin 8.3% for FY26.
• PBIT Rs 74.5 Mn; PBT Rs 8.7 Mn; PAT Rs 8.7 Mn.
• Total assets Rs 2,933.4 Mn; total equity Rs 1,631.4 Mn.
• Cash and cash equivalents Rs 395.5 Mn; borrowings Rs 232.4 Mn.
• Non-current borrowings Rs 473.4 Mn.

Strategic priorities & outlook

• Scale EV and component businesses with new capacities and product lines.
• Backward integration to reduce third-party dependency.
• Target run-rate of 4 lakh units by FY30.
• 500+ dealer and service network; 70–100 dealers by FY27.

Risks & governance

• Reliance on promoter funding; warrants may dilute equity.
• EV rollout depends on policy and supply chain stability.
• Execution risk scaling KWVL and electric platform.

Issue Overview

• Type: preferential warrants convertible into equity.
• Original issue size Rs 177.10 crore; revised to Rs 166.84 crore due to undersubscription.
• Main use objectives: redemption of preference shares, investment in subsidiary, capex, working capital, and GCP.

Utilisation of Proceeds

• Utilisation largely as disclosed; no material deviations from the offer document.
• Means of finance changed due to undersubscription; board approvals obtained.
• Reallocation of objects per BR March 11, 2026; solar capex reduced.
• Undersubscription reduced issue size from 177.10 to 166.84 crore.
• Total funds raised till 30 June 2026: Rs 101.60 crore.
• Unutilised proceeds parked in FDRs and monitoring accounts.
• Redemption of Preference Shares: fully utilised (19.64 crore).
• Payment of Overdue Liabilities: utilised 4.82 crore; ongoing.
• Investment in Subsidiary: utilised 52.00 crore; ongoing.
• Capex including Solar Project: Nil utilization during quarter; ongoing.
• Working Capital: utilised 11.09 crore; ongoing.
• General Corporate Purpose: allocated 1.84 crore; nil utilization in quarter; ongoing.

Governance and Compliance

• Board approvals obtained for size reduction and reallocations (May 13, 2025; March 11, 2026).
• Deviation from disclosed objects: NIL; no material deviations observed.
• Means of finance changed due to undersubscription; reallocations approved by board.
• Undersubscription may affect viability of the objects.
• No major deviations from earlier Monitoring Agency reports.

GCP

• GCP objective: revised cost 1.84 crore; no utilisation in quarter.
• Board approval for GCP allocation not explicitly documented in the MA report.

Meeting Details

• Board meeting scheduled for August 03, 2026; time and venue not disclosed.

Key Agenda Items

• Consider and approve unaudited standalone and consolidated financial results for quarter ended June 30, 2026.

Other Notes

• Trading window closed from July 01, 2026 until 48 hours after results announcement.

Listing approval and key terms

• Listing approval received from BSE for 31,00,000 promoter shares on preferential basis.
• Shares: Rs 10 face value, Rs 161 premium per share; total premium about Rs 49.91 crore.
• Aggregate issue value around Rs 53.01 crore (including premium).
• Approval letter: LOD/PREF/KS/FIP/485/2026-27 dated July 9, 2026.
• Trading approval contingent on NSDL/CDSL confirmations and NSE filing where applicable.
• Company to file for trading approval within seven working days of listing approval.
• Compliance required under ICDR and LODR; change >2% triggers XBRL shareholding filing.
• NSDL/CDSL confirmations for crediting shares and depository system to be obtained.
• Non-compliance with seven-day filing or requirements may incur SEBI fines.

Dematerialisation status

• Securities received for dematerialisation were confirmed (accepted/rejected) to the depositories.
• Securities dematerialised were listed on the stock exchanges where the earlier issues are listed.
• Physical certificates received for dematerialisation were mutilated and cancelled after verification; depository name substituted as registered owner.
• Quarter ended 30 June 2026 covered by this certificate.

Financial performance

• 📊 Consolidated revenue from operations rose 4.8% YoY to Rs 15,775 lakh in FY26.
• 📊 Consolidated total income increased 7.4% YoY to Rs 16,681 lakh in FY26.
• 📊 Consolidated PAT fell to Rs 103 lakh from Rs 642 lakh, after exceptional charges.
• 📊 Exceptional item was Rs 76 lakh past-service gratuity cost from wage code revision.
• 📊 Consolidated Q4FY26 revenue was Rs 4,474 lakh, up 16.0% YoY.
• 📊 Consolidated Q4FY26 PAT was Rs 27 lakh, versus Rs 62 lakh a year earlier.
• 📊 Standalone revenue from operations rose 5.5% YoY to Rs 15,031 lakh in FY26.
• 📊 Standalone total income increased 2.1% YoY to Rs 15,830 lakh in FY26.
• 📊 Standalone PAT fell to Rs 21 lakh from Rs 673 lakh, after Rs 76 lakh exceptional cost.
• 📊 Standalone Q4FY26 revenue was Rs 3,982 lakh, up 3.4% YoY.
• 📊 Standalone Q4FY26 PAT was Rs 51 lakh, versus Rs 82 lakh a year earlier.

Cost drivers

• 📊 Consolidated material cost rose to Rs 9,282 lakh, with finance costs up to Rs 582 lakh.
• 📊 Consolidated employee costs increased to Rs 2,550 lakh, and other expenses to Rs 4,200 lakh.
• 📊 Standalone material cost rose to Rs 8,403 lakh, while finance costs stayed at Rs 582 lakh.
• 📊 Standalone employee costs increased to Rs 2,447 lakh, and other expenses to Rs 4,107 lakh.
• 📊 Consolidated other income included Rs 458 lakh profit on sale of non-core assets.
• 📊 Standalone other income included Rs 458 lakh profit on sale of non-core assets.

Liquidity and capital structure

• 📊 Consolidated equity rose to Rs 16,315 lakh, supported by higher share capital and reserves.
• 📊 Consolidated borrowings stood at Rs 7,058 lakh, including Rs 4,734 lakh long-term debt.
• 📊 Consolidated cash and cash equivalents increased to Rs 3,911 lakh from Rs 3,726 lakh.
• 📊 Consolidated operating cash flow was negative Rs 1,898 lakh in FY26.
• 📊 Consolidated capex and intangibles purchases were Rs 3,691 lakh in FY26.
• 📊 Standalone equity rose to Rs 15,086 lakh, with cash and equivalents at Rs 2,719 lakh.
• 📊 Standalone borrowings stood at Rs 7,058 lakh, including Rs 4,734 lakh long-term debt.
• 📊 Standalone operating cash flow was negative Rs 713 lakh in FY26.
• 📊 Standalone investing cash flow was negative Rs 4,845 lakh in FY26.

Equity and subsidiary investment

• 🧱 The company allotted 31,00,000 equity shares on warrant conversion during Q4FY26.
• 🧱 Warrant conversion raised Rs 39.76 crore at Rs 171 per warrant.
• 🧱 The company invested Rs 13 crore in subsidiary Kinetic Watts and Volts Limited.
• 📍 Post-investment, Kinetic Engineering held 84.69% of Kinetic Watts and Volts Limited.

Audit and board actions

• 📍 Statutory auditors issued an unmodified opinion on standalone and consolidated FY26 results.
• 📍 The board approved re-appointment of Mr. Bhagwan S Waghmare as internal auditor for FY27.

Business overview

• Kinetic Engineering operates in a single segment.
• The consolidated results include subsidiary Kinetic Watts and Volts Limited.
• Kinetic Watts and Volts Limited is in the automobile business.