New Product Or Brand Launch
Expected: Q3 FY26HIGH confidence
What: Revenue contribution: ₹290 Cr
Kennametal India Ltd: Why Is It Outperforming Nifty 500?
ActiveRS +15.5%Average7w StreakRe-Entry
In , Kennametal India Ltd (Castings, Forgings & Fastners) is outperforming Nifty 500 with +15.5% relative strength. Fundamentals: Average. On a 7-week streak.
Kennametal India Ltd Key Facts
- PE Ratio
- 56.9x
- Market Cap
- ₹6,661 Cr
- PAT Growth YoY
- +9%
- Revenue Growth YoY
- +16%
- OPM
- 13.0%
- RS vs Nifty 500
- +15.5%
PE: At PeakWatch Value
What's Happening
📊PE near cycle highs — limited room for further expansion
💪Debt reduced 33% YoY — balance sheet strengthening
💰Trading 22% above estimated fair value — significant premium
Earnings Acceleration Triggers
1. New Product Or Brand Launch
Q3 FY26HIGH
2. Market Share Gains
FY26MEDIUM
3. Annual Sales guidance raised
HIGH
Key Risks
1. Unprecedented increases in tungsten prices impacting margins and cash flow
HIGH2. One-time impact from implementation of new labour codes
LOWSector-Specific Signals
Hard Metal Segment Revenue₹290 Cr17.8%
Material Cost to Revenue29.6%1.4% increase
Key Numbers
PAT Growth YoY
+9%
Inflection Up
Revenue YoY
+16%
Stable
Operating Margin
13.0%
-100 bps YoY
PE Ratio
56.9
Current Price
₹3,031
Dividend Yield
1.32%
Fundamental Score
43/100
Average
3Y PAT CAGR
-3%
Market Cap
6.7K Cr
Valuation
Overvalued12-Week Performance
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
12 weeks agoThis week
Why Are Kennametal India Ltd's Earnings Accelerating?
Based on Q3 FY26 (web) earnings • Updated Apr 18, 2026
Market Share Gains
Expected: FY26MEDIUM confidence
What: Organic sales growth: 10%
Annual Sales guidance raised
HIGH confidence
What: $2.1 - $2.17 billion → $2.19 - $2.25 billion
What Are the Key Risks for Kennametal India Ltd?
Earnings deceleration risks from management commentary
Unprecedented increases in tungsten prices impacting margins and cash flow
HIGHTrigger: Unprecedented increases in tungsten prices impacting margins and cash flow.
Management view: Long-term supplier agreements and diversified sourcing.
Monitor: commodity
One-time impact from implementation of new labour codes
LOWTrigger: One-time impact from implementation of new labour codes.
Impact: PAT impact: ₹3.4 Cr
Management view: Absorbed as one-time cost in Q3.
Monitor: regulatory
What Did Kennametal India Ltd Report This Quarter?
Headline numbers from the latest earnings call
Revenue
₹334 Cr
YoY +16.4%QoQ +12.8%
Revenue growth was primarily driven by strong demand for hard metal and hard metal products.
PAT
₹24 Cr
YoY +9%QoQ -22.29%
PAT growth lagged revenue due to higher material costs and a one-time labor-related expense.
Other Highlights
• Expenses climbed 16% to Rs 301 crore led by material costs at Rs 99 crore.
• One-time cost of Rs 34 million incurred for new labor code implementation.
• Hard metal products segment revenue reached Rs 290 crore.
What Sector Metrics Matter for Kennametal India Ltd?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Hard Metal Segment Revenue
₹290 Cr
YoY 17.8%
Why: Driven by strong demand for hard metal and hard metal products.
Material Cost to Revenue
29.6%
YoY 1.4% increase
Why: Reflects higher material costs, specifically tungsten.
What Is Kennametal India Ltd's Management Guidance?
Forward-looking targets from management for FY26
Revenue Outlook
$2.19 billion - $2.25 billion (Global Parent)
Capex Plan
$90 million (Global Parent)
General corporate purposes and manufacturing excellence
Volume
Flat to positive growth
Management Tone: BULLISH
Guidance Changes
RAISED
Annual Sales: $2.1 - $2.17 billion → $2.19 - $2.25 billion
Tangible volume gains and successful price realization
How Fast Is Kennametal India Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +16% | +6% | Stable |
| PAT (Net Profit) | +9% | -3% | Inflection Up |
| OPM | 13.0% | -100 bps | Stable |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
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Frequently Asked Questions: Kennametal India Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What were Kennametal India Ltd's latest quarterly results?
Kennametal India Ltd's latest quarterly results (Dec 2025) show
- PAT Growth YoY: +9.1% (turning around (inflection up))
- Revenue Growth YoY: +16.4%
- Operating Margin: 13.0% (stable)
Is Kennametal India Ltd's profit growing or declining?
Kennametal India Ltd's profit is growing with an turning around (inflection up) trend.
- PAT Growth YoY: +9.1% (latest quarter)
- PAT Growth QoQ: -22.6% (sequential)
- 3-Year PAT CAGR: -3.3%
- Trend: Turning around (inflection up) — consistent growth pattern
What is Kennametal India Ltd's revenue growth trend?
Kennametal India Ltd's revenue growth trend is stable.
- Revenue Growth YoY: +16.4%
- Revenue Growth QoQ: +12.8% (sequential)
- 3-Year Revenue CAGR: +5.7%
How is Kennametal India Ltd's operating margin trending?
Kennametal India Ltd's operating margin is stable.
- Current OPM: 13.0%
- OPM Change YoY: -1.0% basis points
- OPM Change QoQ: -5.0% basis points
What is Kennametal India Ltd's 3-year profit and revenue CAGR?
Kennametal India Ltd's long-term compounding rates
- 3-Year Profit CAGR: -3.3%
- 3-Year Revenue CAGR: +5.7%
Is Kennametal India Ltd's growth accelerating or decelerating?
Kennametal India Ltd's earnings growth is turning around (inflection up) with weakening on a sequential basis.
- YoY Acceleration: -14.9% bps
- Sequential Acceleration: -22.6% bps
What is Kennametal India Ltd's trailing twelve month (TTM) performance?
Kennametal India Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹110 Cr
- TTM PAT Growth: -4.3% YoY
- TTM Revenue: ₹1,000 Cr
- TTM Revenue Growth: +10.2% YoY
- TTM Operating Margin: 14.9%
Is Kennametal India Ltd overvalued or undervalued?
Kennametal India Ltd appears overvalued based on our fair value analysis.
- Valuation Signal: Overvalued
- Current PE: 56.9x
- Price-to-Book: 10.3x
What is Kennametal India Ltd's current PE ratio?
Kennametal India Ltd's current PE ratio is 56.9x.
- Current PE: 56.9x
- Market Cap: 6.7K Cr
- Dividend Yield: 1.32%
How does Kennametal India Ltd's valuation compare to its history?
Kennametal India Ltd's current PE is 56.9x.
- Current PE: 56.9x
- Valuation Assessment: Overvalued
What is Kennametal India Ltd's price-to-book ratio?
Kennametal India Ltd's price-to-book ratio is 10.3x.
- Price-to-Book (P/B): 10.3x
- Book Value per Share: ₹294
- Current Price: ₹3031
Is Kennametal India Ltd a fundamentally strong company?
Kennametal India Ltd is rated Average with a fundamental score of 43.19/100. This score is calculated from objective financial metrics
- Revenue Growth YoY: +16.4% (10% weight)
- PAT Growth YoY: +9.1% (10% weight)
- PAT Growth QoQ: -22.6% (10% weight)
- Margins stable (10% weight)
Is Kennametal India Ltd debt free?
Kennametal India Ltd has a debt-to-equity ratio of N/A.
- Total Debt: ₹2 Cr
What is Kennametal India Ltd's return on equity (ROE) and ROCE?
Kennametal India Ltd's return ratios over recent years
- Jun 2023: ROCE 17.0%
- Jun 2024: ROCE 19.0%
- Jun 2025: ROCE 18.0%
Is Kennametal India Ltd's cash flow positive?
Kennametal India Ltd's operating cash flow is positive (Jun 2025).
- Cash from Operations (CFO): ₹145 Cr
- Free Cash Flow (FCF): ₹141 Cr
- CFO/PAT Ratio: 141% (strong cash conversion)
What is Kennametal India Ltd's dividend yield?
Kennametal India Ltd's current dividend yield is 1.32%.
- Dividend Yield: 1.32%
- Current Price: ₹3031
Who holds Kennametal India Ltd shares — promoters, FII, DII?
Kennametal India Ltd's shareholding pattern (Mar 2026)
- Promoters: 75.0%
- FII (Foreign): 0.3%
- DII (Domestic): 14.0%
- Public: 10.6%
Is promoter holding increasing or decreasing in Kennametal India Ltd?
Kennametal India Ltd's promoter holding has remained stable recently.
- Current Promoter Holding: 75.0% (Mar 2026)
- Previous Quarter: 75.0% (Dec 2025)
- Change: 0.00% (stable)
How long has Kennametal India Ltd been outperforming Nifty 500?
Kennametal India Ltd has been outperforming Nifty 500 for 7 consecutive weeks, indicating building momentum.
Is Kennametal India Ltd a new momentum entry or an established outperformer?
Kennametal India Ltd is a re-entry — it briefly dropped off the outperformance list but has now returned. Re-entries can signal renewed strength.
What are the growth catalysts for Kennametal India Ltd?
Kennametal India Ltd has 3 key growth catalysts identified from recent earnings analysis
- New Product Or Brand Launch — Hard metal demand is the primary driver of the double-digit topline growth.
- Market Share Gains — Share gains in key segments like Infrastructure and Metal Cutting are supporting the raised outlook.
- Annual Sales guidance raised — Tangible volume gains and successful price realization
What are the key risks in Kennametal India Ltd?
Kennametal India Ltd has 2 key risks worth monitoring
- [HIGH] Unprecedented increases in tungsten prices impacting margins and cash flow — Unprecedented increases in tungsten prices impacting margins and cash flow.
- [LOW] One-time impact from implementation of new labour codes — One-time impact from implementation of new labour codes.
What is Kennametal India Ltd's management guidance for growth?
Kennametal India Ltd's management has provided the following forward guidance for FY26
- Revenue outlook: $2.19 billion - $2.25 billion (Global Parent)
- Margin outlook: Not Given
- Capex plan: $90 million (Global Parent) for General corporate purposes and manufacturing excellence
- Management tone: bullish
- Milestone: [RAISED] Annual Sales: $2.1 - $2.17 billion → $2.19 - $2.25 billion
What sector-specific metrics matter most for Kennametal India Ltd?
Kennametal India Ltd's most important sub-sector-specific KPIs from the latest concall
- Hard Metal Segment Revenue: ₹290 Cr (YoY 17.8%) — Driven by strong demand for hard metal and hard metal products.
- Material Cost to Revenue: 29.6% (YoY 1.4% increase) — Reflects higher material costs, specifically tungsten.
Is Kennametal India Ltd worth studying for long term investment?
Based on quantitative research signals, here is why Kennametal India Ltd may be worth studying
- Earnings growing at +9.1% YoY
- Cash flow is positive — CFO ₹145 Cr
What is the investment thesis for Kennametal India Ltd?
Kennametal India Ltd investment thesis summary:
Research Signals (Bull Case)
- Revenue growing at +16.4% YoY
- Growth catalyst: New Product Or Brand Launch
Risk Factors (Bear Case)
- Appears overvalued
- Key risk: Unprecedented increases in tungsten prices impacting margins and cash flow
What is the future outlook for Kennametal India Ltd?
Kennametal India Ltd's forward outlook based on current data signals
- Earnings Trend: turning around (inflection up)
- Revenue Trend: stable
- Margin Trend: stable
- Valuation: Overvalued
- Key Catalyst: New Product Or Brand Launch
- Key Risk: Unprecedented increases in tungsten prices impacting margins and cash flow
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.