Kotia Enterprises Limited — Q4 FY26 earnings call

Call held 25 Mar 2026

Management summary

Kundan Edifice Limited held an update call outlining its strategic shifts towards high-margin, application-based lighting and new ventures into GaN technology and Battery Energy Storage Systems (BESS). The company is targeting 30-35% top-line growth for the next financial year and plans for mainboard migration by September 2026. While current capacity utilization is 75% and raw material costs pose a challenge, management is confident in its diversification strategy and ability to pass on costs.

Highlights

  • Company is diversifying into high-margin application-based lighting segments like furniture, facade, automobile, and mining lighting.

  • Indigenous development of GaN technology for more compact and powerful power supplies, positioning KEL as a leader in this niche.

  • Strategic entry into the Battery Energy Storage Systems (BESS) industry, with an estimated potential of ₹30-50 crores per annum.

  • Management is targeting a significant 30-35% top-line growth for the next financial year (FY27).

  • Plans for mainboard migration are underway, with eligibility expected in September 2026.

Concerns

  • Current capacity utilization is around 75%, with 20-25% spare capacity, partly due to cyclical demand patterns.

  • Raw material cost volatility (e.g., crude, dollar prices) can impact material costs, though management aims to pass these on.

  • Challenges in the Indian manufacturing ecosystem, particularly for rapid development compared to China, are acknowledged.

What they filed

Q1 FY27: net profit up 200.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue0 0 0 0 0 −100%0 1 0
EBITDA-0 -0 -0 -0 -0 −45%-0 −50%1 +860%-0 +0%
Net profit0 0 -0 -0 -0 −375%-0 −1200%-2 −4340%0 +200%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Capital allocation

medium confidence
  • Capex ₹2 Cr
    • New products and growth initiatives ₹2 Cr
    Maybe a CAPEX of another 2-3 crores would be required, but that we can... we can... Manage that.
  • Debt Debt disclosed
    The borrowings. See, we increase our borrowings because you're doing capexes also, and the idea would be to reduce those as well.

Guidance & targets

Revenue

  • Top-line growth Revenue · next financial year · High confidence 30-35%
    And we still... we see that, okay, at least we would do around a 30-35% growth from... compared to this year. is what we are looking to do for the next financial year.

    — Divyansh Gupta

Capex

  • Planned Capex Capex · next financial year · High confidence ₹2-3 crores
    Maybe a CAPEX of another 2-3 crores would be required, but that we can... we can... Manage that.

    — Divyansh Gupta

Top Line

  • Maximum Sales (post-capex) Top Line · after capex · High confidence ₹140-150 crores
    After another 2-3 crores of capex that we are looking to do, I think we should be able to go up to around 140, 150, within the range of 140, 150 as a top line.

    — Divyansh Gupta

BESS

  • BESS Installation Capacity BESS · future · Medium confidence 30-50 megawatt
    We are intending to do... At, if nothing much, at least some 30 to 50 megawatt.

    — Divyansh Gupta

  • BESS Annual Revenue BESS · per annum · Medium confidence ₹30-50 crores
    So that would roughly convert to around 30 to 50 crores per annum

    — Divyansh Gupta

Corporate Strategy

  • Mainboard Migration Eligibility Corporate Strategy · September · High confidence September 2026
    Yes, absolutely, the company is planning mainboard migration. We would be eligible... in September, because I think there's a 3-year clause, so by September, we will be eligible

    — Divyansh Gupta

What to watch in Q1 FY27

Mainboard migration progress

next quarter
Current Eligible in September 2026
Target Update on migration process initiation or timeline

Why it matters

Mainboard migration can enhance visibility and access to capital for future growth.

Yes, absolutely, the company is planning mainboard migration. We would be eligible... in September, because I think there's a 3-year clause, so by September, we will be eligible

Risks & concerns

  • Raw material cost volatility

    medium

    Rising dollar prices and crude oil costs affect import materials, which are byproducts of crude.

    the dollar has gone up. It affects our imports, the crude has gone up, so it affects the materials that we buy.

    Management acknowledged

  • Cyclical demand in core lighting business

    medium

    Lighting demand is cyclical, shooting up from June-July and going till March, leading to lower demand in Q1 and year-end.

    it becomes a little of a cyclic business also at times, because the lighting requirement kind of shoots up from June, July. And goes on till... till March.

    Management acknowledged

  • Lack of a developed manufacturing ecosystem in India

    medium

    India lacks the complete ecosystem for rapid manufacturing development compared to countries like China.

    the ecosystem that is required to convert it at a faster pace. I don't think we have it in India, and that is not something that is really in our hands.

    Management acknowledged

Q&A highlights

7 direct
Mainboard migration and future growth strategy Direct
Yes, absolutely, the company is planning mainboard migration. We would be eligible... in September, because I think there's a 3-year clause, so by September, we will be eligible, and we are much in preparation of how and when we can... how soon can we migrate to the main board. ... in the coming year, we would look at a double-digit. growth percentage.

Confirms the company's plan for mainboard migration and provides a general outlook for double-digit growth in the coming year.

Asked by Mr. Rajesh

Client acquisition process and onboarding time Direct
So, general time to acquire a client is generally 6-8 months. ... So it took us... we have been engaging with them since, I would say. June or July, so... June, July, we started engaging with them, and in February is when we... in February, or I think in early March this year, is when we got our vendor approvals from them.

Provides insight into the sales cycle and the time required to onboard new clients, citing Hettich as an example.

Asked by Ms. Nikita Goinka

Current capacity utilization and expansion plans Direct
See, currently, I would say we are utilizing around 75% of our capacity. There is potential to utilize around 20-25% more capacity. But, what happens is our line of business, there are... there are things where, like, you know, it's... Currently, because we're predominantly catering to the Indian market, So, it becomes a little of a cyclic business also at times, because the lighting requirement kind of shoots up from June, July.

Reveals current capacity utilization and explains the cyclical nature of demand affecting it, highlighting the need for diversification.

Asked by Mr. Pranav

Impact of loosening Chinese import restrictions on business and margins Direct
Now, what the government has done is that they have the BIS certification, which was being given to the Chinese manufacturers earlier. Now, no new Chinese manufacturers are being given the BIS certification. ... So, the government is not giving BIS certification for the new product to Chinese manufacturers, which has, benefited, which will continue to benefit the Indian manufacturers.

Clarifies how government policies (BIS certification) are protecting Indian manufacturers despite perceived loosening of import restrictions, mitigating competitive risk.

Asked by Mr. Pranav

Development of GaN technology Direct
So, we haven't acquired any technology, it's all indigenous technology. We have set up a R&D team, we invest in our R&D. ... for this power supply and GaN technology, we have... we have started working on this since last 2 years.

Confirms indigenous development of GaN technology, emphasizing self-reliance and R&D investment, which is a key differentiator.

Asked by Mr. Pranav

Current order book and growth visibility Partial
So, we don't have a current order book, we cannot say that... what... the current order book for the full year. So, how it works is, because the companies that we work with, they, are a brand which has presence in the market. So, we have a quarterly forecast, quarterly rolling plan that we get. ... on basis of that, only we have said that we are estimating a 30-35% growth.

Explains the nature of their business (ODM for brands) means they don't have a traditional full-year order book, but rely on quarterly forecasts to project growth.

Asked by Mr. Rudresh Mishra

Waterproof lighting segment's impact on margins and scalability Direct
We see that this is a very niche space, because when you say facade lighting, or outdoor application, or architectural lighting, all of those kind of lights need to be waterproof. ... the costs are higher, the margins are higher, and it's a better selling proposition, but... and the volume is... is... substantial.

Highlights the strategic importance of waterproof lighting for margin expansion and scalability due to its niche application and higher technical requirements.

Asked by Mr. Rudresh

Strategic direction and future focus of the company Direct
We are working on now application-based lightings, which very few companies are even thinking of. ... And our power supplies, GaN-based power supplies, is going to be a stepping stone to that. And we are keen to do something in the power sector as well, and so just... this is not a related space, but like I also mentioned in my introduction earlier, that we have started working on the best technology. ... BESS is Battery Energy Storage Systems.

Provides a comprehensive overview of the company's strategic pivot towards application-based lighting, GaN technology, and the new venture into Battery Energy Storage Systems (BESS).

Asked by Mr. Rajesh Kawande

2 min read 6 chapters

Detailed narrative

Strategic Diversification into Application-Based Lighting

Kundan Edifice is strategically shifting its focus from generic lighting to application-specific products, targeting higher margins and new market opportunities. This includes furniture lighting, where they have been onboarded as a vendor by Hettich, and facade lighting, which is seeing significant government and infrastructure spending. The company is also exploring automobile and mining lights, leveraging its capability to produce long linear lights up to 100 meters.

Indigenous GaN Technology Development

The company has indigenously developed GaN (gallium nitride) technology over the last two years, without acquisition. This technology enables the creation of more compact, powerful, and impactful products, addressing market demand for sleeker designs. KEL is one of the few companies in India working on GaN, with plans to launch these products in the market soon, initially focusing on lighting applications before potentially expanding to GaN chargers.

Entry into Battery Energy Storage Systems (BESS)

Kundan Edifice is making an early entry into the Battery Energy Storage Systems (BESS) industry, which it identifies as a very new and large market. While currently in the initial stages of engaging with clients and submitting expressions of interest for government and CNI projects, the company aims to eventually move into assembly or manufacturing. Management estimates a potential for 30 to 50 megawatt installations, translating to an annual revenue of ₹30 to 50 crores from this segment.

Future Growth Outlook and Capex Plans

The company projects a significant 30-35% top-line growth for the next financial year (FY27), driven by its new product developments and market entries. To support this growth, an additional capex of ₹2-3 crores is planned, to be initiated in April and completed in the first quarter of the coming year. This investment is expected to enable the company to achieve a top line of ₹140-150 crores.

Mainboard Migration and Operational Efficiency

Kundan Edifice is preparing for mainboard migration, expecting to be eligible in September 2026. Operationally, the company is working on improving efficiency through Industry 4.0 initiatives, including HRMS and PMS software implementation, and automation in manufacturing. Current capacity utilization stands at approximately 75%, with efforts underway to optimize this by exploring new territories and applications to counter cyclical demand patterns.

Mitigating Chinese Competition and Raw Material Risks

Management addresses concerns about Chinese competition by highlighting the government's BIS certification policy, which now restricts new Chinese manufacturers from obtaining certification for new products, thereby benefiting Indian players. Regarding raw material cost increases due to factors like dollar appreciation and crude prices, the company states it has a policy of passing on these price escalations to customers after a certain threshold.

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