Opening Hook
Remember the old Kinetic Luna—the moped that made hills feel like Everest? Fast forward to 2025, and the company behind it is now trying to electrify nostalgia. Kinetic Engineering (KEL) isn’t just manufacturing gears and axles anymore; it’s reviving its iconic DX as an EV, throwing in buzzwords like “Range-X batteries” and “K-Coast regen tech” to woo the market.
The concall? Part corporate lecture, part EV sales pitch, sprinkled with “we’re back, baby!” vibes. Here’s what we decoded from the high-voltage investor session.
At a Glance
- Revenue dipped 10.7% YoY to ₹353 Mn – apparently, nostalgia doesn’t pay bills overnight.
- PAT stayed flat at ₹5.2 Mn – a profit so thin, it’s on a diet.
- EBITDA margin rose to 8.7% – because cost-cutting is the new innovation.
- Other income skyrocketed 763% – translation: selling stuff they didn’t need.
- Promoter stake up to 61% – when in doubt, buy more of your own company.
The Story So Far
Kinetic was once the king of scooters, then lost its crown, wandered into auto components, and is now staging a comeback with EVs. Over the last decade, they’ve quietly built a components empire supplying Tata, Mahindra, and Ashok Leyland. Then came Kinetic Watts & Volts (KWV)—their EV arm that’s relaunching the DX in electric avatar.
The company’s narrative is now a cocktail of “legacy meets EV future.” They even got TV9 and ET Now awards—because no Indian turnaround is complete without shiny trophies.
Management’s Key Commentary
- On EV Revival: “Kinetic DX is reborn with cutting-edge EV tech.”
– Translation: Please love us like the 90s. - On Growth: “Promoters have infused ₹160 Cr.”
– They’re literally betting the family fortune on this. - On Margins: “EBITDA margin improved to 8.7%.”
– Sure, but only because other income saved the day. - On Legacy: “50+ years of brand trust.”
– Legacy is cool, but profits pay dividends. - On Sustainability: “We are actively investing in EV.”
– Or as investors hear it: “Capex is about to explode.” - On Exports: “Expanding global footprint.”
– Let’s see if Mexico and the US remember who Kinetic is.
Numbers Decoded – What the Financials Whisper
| Metric | Q1FY26 | YoY Growth | Commentary |
|---|---|---|---|
| Revenue – The Hero in Rehab | ₹353 Mn | -10.7% | Still crawling out of the past. |
| EBITDA – The Fighter | ₹35.8 Mn | +13.3% | Cost control did the heavy lifting. |
| PAT – The Flatliner | ₹5.2 Mn | -3.7% | Neither dead nor alive. |
| Margins – The Drama Queen | 8.7% | +88 bps | Slight glow-up, but fragile. |
Analyst Questions That Spilled the Tea
- Analyst: “What’s the EV roadmap?”
Management: “We’re relaunching DX and scaling Range-X batteries.”
– Translation: We’re betting everything on one scooter and some batteries. - Analyst: “Why is revenue falling?”
Management: “Realignment and EV focus.”
– Translation: Old business is shrinking while new one hasn’t kicked in. - Analyst: “How soon till profitability improves?”
Management: “Medium-term growth is promising.”
– Translation: Keep holding, we’ll get there… eventually.
Guidance & Outlook – Crystal Ball Section
The company is promising a bright EV future, with the DX and DX+ leading the charge (literally). They’re also expanding components business and battery production under Range-X. Promoters are all-in, and the PLI scheme will sprinkle some government magic.
However, execution risk is high. The EV market is a crowded dance floor, and KEL is trying to reclaim space with old-school moves in a Gen-Z party.
Risks & Red Flags
- Falling Revenues – even nostalgia needs sales.
- EV Competition – Ola, Ather, Bajaj, and everyone else already ahead.
- Low Margins – 8% EBITDA is one speed breaker away from collapse.
- Debt Dependence – leverage can’t be the growth engine forever.
Market Reaction & Investor Sentiment
The stock barely twitched—investors are in “wait and watch” mode. Some retail folks are excited about the EV nostalgia story, while institutional investors are like, “Call us when PAT isn’t a rounding error.”
EduInvesting Take – Our No-BS Analysis
Kinetic Engineering is like that friend who once ruled the college fest, disappeared, and now shows up with an electric guitar claiming they’ll headline Coachella. The ambition is there, the EV story is sexy, and promoter confidence is strong.
But investors need to ask: Can they scale EVs fast enough to offset a declining legacy business? If yes, KEL could be a hidden gem. If not, it’s just another case of “EV dream, IC reality.”
Conclusion – The Final Roast
The Q1 call was a mix of nostalgia, EV hype, and financial caution tape. Kinetic is betting big on a comeback, but the road ahead is bumpy and full of competitors with bigger wallets. For now, investors can enjoy the drama and hope this isn’t just another retro flop.
Written by EduInvesting Team
Data sourced from: Company concall transcripts, investor presentations, and filings.
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