Kennametal India (505890) Q1 26/27 earnings summary

Executive summary

• Consolidated Q1 FY27 sales were $768M, up 54% organically; EBITDA margin was 51.9%, with gains reflecting pricing, raw-material price/cost timing, improved end markets and Metal Cutting volume growth.

• Q1 FY27 revenue was ₹5,517m, up 86.4% YoY, and PBT rose to ₹1,427m from ₹434m, supported by stronger Hard Metal volumes and favorable raw-material pricing timing.

Financial highlights

• Consolidated revenue was $768M; gross profit was $514M and operating income was $379M.

• Consolidated net income was $271.6M; reported diluted EPS was $3.48 vs. $0.30 reported and $0.34 adjusted in Q1 FY26.

• Total income was ₹5,526m and total expenses were ₹4,099m; net profit was ₹1,067m vs. ₹314m YoY.

• Total comprehensive income was ₹1,058m vs. ₹314m; basic and diluted EPS were ₹48.54 vs. ₹14.30, not annualized.

Outlook and guidance

• FY27 sales outlook is $3.33B–$3.45B, with YoY revenue growth of ~1%–~4%; volume assumptions are Up HDD across listed end markets.

• FY27 adjusted EPS guidance is $5.00–$6.00; assumptions include neutral FX, tungsten prices stable at current levels, $10M restructuring savings and FOCF ~20% of adjusted net income.

• Q2 FY27 sales guidance is $785M–$815M, with YoY growth of ~1%–~4%; adjusted EPS is $1.20–$1.50.

• Management cited sustained demand across end-use segments and disciplined execution; share repurchases are paused until cash flow turns positive.