Kennametal India Reports ₹107 Crore Net Profit as Operating Margins Reach 25.8%

Key numbers

P/E Ratio (TTM)	38.76xSector: 51.85x
Market Cap	₹7,596.22 CrMid-range Performer
RSI (14D)	35.68Neutral Zone
Promoter Holding	75.0%Zero Pledge

Key highlights

• Revenue from operations grew to ₹552 crore in Q2-27, an increase from ₹296 crore in Q2-26
• Net profit witnessed a sharp rise to ₹107 crore, representing a 239.8% YoY growth
• Operating margins expanded to 25.8% in Q2-27 compared to 14.5% in the same quarter last year
• Hard metal and hard metal products segment contributed ₹519.8 crore to total revenue
• Profit before tax climbed to ₹143 crore, up from ₹43.4 crore in the year-ago period

Sharp Top-Line Expansion and Profit Trajectory

Kennametal India recorded a revenue from operations of ₹552 crore for the quarter ended September 30, 2026, marking a robust expansion from the ₹296 crore reported in the corresponding quarter of the previous year. This growth trickled down to the bottom line, with net profit reaching ₹107 crore, a 239.8% increase year-on-year. On a sequential basis, the company sustained its momentum, growing net profit by 20.2% from the ₹88.8 crore reported in Q1-27.

Total income for the period stood at ₹553 crore, while other income moderated to ₹0.9 crore from ₹2.4 crore a year ago.

Operating Margins and Cost Efficiency

The company’s profitability was bolstered by significant margin expansion, with operating margins hitting 25.8% in the current quarter compared to 14.5% in Q2-26. This improvement was supported by the favorable timing of raw material-related pricing relative to costs. Total expenses for the quarter were contained at ₹409.9 crore, despite the increase in scale.

Notably, finance costs saw a marginal rise to ₹1.3 crore, while employee benefit expenses were recorded at ₹45.1 crore. The management noted that there were no immediate financial implications from the Code on Wages during the quarter.

Segmental Performance and Asset Base

• Hard metal and hard metal products segment revenue stood at ₹519.8 crore for the quarter
• Machining solutions segment contributed ₹31.9 crore to the overall revenue mix
• The hard metal segment results reached ₹163 crore, while machining solutions reported a loss of ₹5.5 crore
• Total segment assets for the company increased to ₹1,599.9 crore as of September 30, 2026
• Unallocable expenditure for the quarter was reported at ₹14.5 crore
• Consolidated capital expenditure progress continues following the ₹68 crore greenfield project approval in late 2025

Operational Resilience and Strategic Outlook

These results were primarily driven by the favorable timing of raw material-related pricing compared to costs and stronger volumes supported by sustained demand across end-use segments.

What to watch next

• 61st Annual General Meeting of shareholders scheduled for November 13, 2026
• Execution milestones for the greenfield project in India for the Machining Solutions Group
• Monitoring the finalization of Central and State Rules related to the Code on Wages, 2019
• Impact of global tungsten price volatility on future raw material cost dynamics

“While the operating environment continues to be shaped by geopolitical uncertainties and historically high tungsten prices, our resilient business model, disciplined execution, and customer-focused approach position us well to navigate these challenges and continue to capture growth opportunities across our key markets.”

Kennametal India · financial snapshot

Share price	₹3456.25
Market capitalisation	₹7,596.22 Cr
Revenue (annual)	₹1,510.70 Cr
Net profit (annual)	₹196.00 Cr
Revenue (latest quarter)	₹477.60 Cr+18.48% vs previous quarter
Net profit (latest quarter)	₹88.80 Cr+72.76% vs previous quarter
P/E (TTM)	38.76×Sector 51.85×
Promoter holding	75%0.00% QoQ
FII holding	0.23%Current quarter

Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.