Re-appointment of Internal Auditor of the Company for F.Y. 2026-27.
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Kinetic Engineering Ltd reported FY 2026 audited results showing consolidated revenue growth of 10.7% to Rs 15,775 lakhs, but profit declined sharply to Rs 90 lakhs (vs Rs 604 lakhs in FY25) due to higher raw material costs (Rs 9,282 lakhs, up 18%) and increased finance costs (Rs 582 lakhs). Standalone PAT was Rs 236 lakhs vs Rs 654 lakhs previously. The company allotted 31 lakh equity shares (Rs 10 face value) at Rs 171 per share upon warrant conversion, raising Rs 39.76 crore. The Board reappointed Mr. Bhagwan S. Waghmare as Internal Auditor for FY 2026-27 based on Audit Committee recommendation. The company invested Rs 13 crore in subsidiary Kinetic Watts & Volts Ltd (KWVL), increasing its stake from 82.89% to 84.69%. KWVL, incorporated in 2022, posted first turnover of Rs 789 lakhs in FY26. Operating cash flow turned negative at Rs 1,898 lakhs (consolidated) due to inventory build-up and rising receivables. No tax provision was made due to carried forward losses.
Despite revenue growth, the sharp decline in profitability and negative operating cash flows are concerning for shareholders. The Rs 13 crore investment in subsidiary and Rs 39.76 crore warrant conversion indicate significant dilution and capital deployment, which could impact near-term valuations.