Kavveri Defence & Wireless Technologies Ltd — FY26 Annual Results: A ₹390 Cr Market Cap on ₹8.42 Cr Revenue

General information and entertainment, not investment advice. The author is not a SEBI-registered adviser or research analyst. No recommendation, no promised returns. Markets carry risk including loss of capital. Figures may not be current. Consult a registered adviser before acting.

1 — At a Glance

A ₹390 Cr company that earned ₹8.42 Cr in revenue last year. That sentence alone earns this entry a place in the reference books — not because it’s unusual for a defence-tech hopeful to trade at a steep multiple, but because the arithmetic is so stark it deserves a clean statement before anything else arrives.

Kavveri Defence & Wireless Technologies Ltd closed FY26 with consolidated revenue of ₹8.42 Cr, down 51% from FY25’s ₹17.12 Cr, which was itself a recovery year. Net profit landed at ₹1.24 Cr — positive, but built almost entirely on ₹2.85 Cr of other income rather than operating activity; operating profit was negative at -₹1.39 Cr. The market pays 314x trailing earnings for this business as it sits today, against a peer median P/E of roughly 59x.

The attention signals: a massive warrant-conversion exercise completed in FY26 that more than tripled the share count from 3.44 Cr to 6.01 Cr; promoter holding that rose from 15% to 24.6% through this exercise; and an auditor that issued a qualified opinion for the second consecutive year on the company’s subsidiary investments. The worry signals: debtor days of 317, working capital days that swung from -83 to +2,212 in a single year, operating cash outflow of ₹22.87 Cr, and seven subsidiaries of which six are either in insolvency, bankruptcy, or dormant.

A company redesigning itself around defence and wireless — antennas for counter-drone systems, indigenous shipments to the Indian Armed Forces, a penta-band antenna for a U.S. counter-drone firm — is doing so from a revenue base that most mid-sized restaurants would recognise.

Wisdom: The market often prices the story before the revenue arrives. The distance between the two is called patience — or risk, depending on when you’re asked.

2 — Introduction

Kavveri Defence & Wireless Technologies Ltd was incorporated in 1996 in Bengaluru, originally as Kavveri Telecom Products Limited. The name changed in FY24, an event that tracked the company’s declared pivot from its legacy telecom-infrastructure identity toward defence, aerospace, and counter-drone applications. The registered office sits on Bannerghatta Road, Bengaluru.

The company’s history from 2015 to 2022 was a sustained contraction: revenue fell from ₹51.51 Cr in FY15 to ₹5.61 Cr in FY22, borrowings peaked above ₹295 Cr before a restructuring event in FY23 effectively cleared the debt ledger — consolidated borrowings dropped from ₹209 Cr in FY22 to ₹0.03 Cr by March 2023. That restructuring is why FY23 shows a ₹31.49 Cr “profit” and an operating profit figure of -₹206 Cr simultaneously: write-backs and debt waivers, not operations.

FY25 brought a genuine revenue surge to ₹17.12 Cr and a PAT of ₹6.41 Cr. FY26 reversed it — revenue fell to ₹8.42 Cr, PAT fell to ₹1.24 Cr.

During FY26, the company converted 3.275 Cr warrants (originally allotted September 2024) into equity shares at ₹16 per share. The conversion happened in tranches: 1.85 Cr shares on March 5, 2026, and 72.5 lakh shares on March 6, 2026, with a further 2.725 Cr shares listed June 1, 2026. Proceeds from financing activities in FY26 were ₹30.53 Cr (consolidated), reflecting this conversion. Promoter holding rose from 15.14% to 24.56% through the exercise.

NSE also issued an advisory letter dated May 15, 2026 noting that the 4 Cr warrants were placed under lock-in with a delay of more than two months from their allotment date, constituting non-compliance with SEBI ICDR Regulations.

3 — Business Model: WTF Do They Even Do?

Kavveri designs and manufactures RF (radio frequency) products — antennas, filters, combiners, multi-couplers, repeaters, and related components. The technology is genuinely specialised: RF engineering sits at the intersection of physics and manufacturing precision, and the company’s products serve environments where communication failure is not an option — military vehicles, air traffic control towers, disaster response teams, drone-detection systems.

Find their products here – https://kavveridefence.com/product-list/?_product_type=antennas

The business verticals, per the company’s own classification, span: Aerospace & Defence (tactical communication, ATC), Counter-Drone (CUAS — counter-unmanned aircraft systems), Private LTE and CBRS (via its subsidiary Til-Tek, among the first to develop CBRS antennas), Fixed Wireless Access, Public Safety Solutions, and Bespoke Design.

The clientele on record includes Airtel, BSNL, ISRO, Nokia, Reliance Communications, Tata Teleservices, and Vodafone — a list that spans both legacy telecom carriers and strategic-sector institutions. Whether all of these remain active relationships is not stated in the filings.

In FY24, product sales contributed roughly 85% of revenue, with rental income (~7%) and interest income (~5%) rounding out the mix.

The company also recently shipped an indigenous dual-polarised high-gain antenna for emergency drone procurement by the Indian Armed Forces (December 2025), and in December 2024 secured an order to design the world’s first penta-band high-gain antenna for a U.S.-based counter-drone firm. In August 2024, it received a ₹10.9 Cr order for RF products and antennas under the Make in India initiative.

Now for the model’s structural curiosity: a company positioned in mission-critical, globally-relevant RF technology reported ₹8.42 Cr in total revenue last year. Til-Tek Antennae (a Canadian subsidiary, among the audited subsidiaries in the consolidated numbers) and three other subsidiaries contribute to the consolidated picture, but six further subsidiaries — including Kavveri Telecom Infrastructure (in insolvency under IBC 2016) and Spotwave Wireless (in bankruptcy in Canada) — are excluded from consolidation entirely. The remaining non-operational subsidiaries carry ₹28.34 Cr of investments on the standalone balance sheet that the auditor has flagged as potentially impaired.

This is a company with a serious technology pedigree, a well-articulated defence pivot, and a revenue line that does not yet reflect either.

Does the December 2024 penta-band antenna order and the Armed Forces shipment point to a near-term revenue inflection, or does the FY26 revenue decline suggest the pipeline is still more promise than purchase order?

4 — Financials Overview

Figures are consolidated, in ₹ crore.

Annual Results — FY26 vs FY25

EBITDA approximated as PBT (₹1.24) + Interest (₹0.03) + Depreciation (₹0.19) — OI (₹2.85) = -₹1.39 operating, but total EBITDA including other income shown here

The revenue decline of 51% follows a FY25