Corporate Development     

Published: September 30, 2026
Updated: September 30, 2026

Kinetic Engineering

Beefing up its e-scooter segment

Based at Pune, Kinetic Engineering Limited (KEL), the flagship company of the Kinetic group, is strengthening its growth momentum with an additional investment of approximately Rs 57 crore. Of this, around Rs 17 crore will be directed towards capex, while Rs 40 crore will be invested in expansion of its electric two-wheeler segment, underscoring KEL’s continued commitment to its electric mobility ambitions. The investment is by way of the last tranche of conversion of 44.51 lakh warrants issued to the promoters in March 2025.

The renewed investment comes at a time of growing traction for the brand on the ground. Kinetic has signed LoIs with 150+ dealers across the country, of which 60+ are already operational, backed by sales, service and spares facilities. This growing network is building a distribution ecosystem to support its expansion plans. The company has also received an encouraging market response, reflecting growing consumer confidence in the Kinetic EV proposition.

With this momentum, Kinetic is setting its sights on entering the top 10 electric vehicle brands in the country. Electric two-wheeler penetration is expected to reach approximately 26% by FY 2030, as per a Kearney report, raising the current market size of 1.8 mn to 7 mn, and creating a significant opportunity for Kinetic to expand its footprint, strengthen its market presence and scale its business in the years ahead.

SCOOTER UPGRADE

A key part of this growth strategy is the Kinetic DX and DX+, which are gaining strong traction in the market. The scooters now offer up to 132 km of IDC range, making them well suited for everyday commuting. Powered by upgraded 3.1 kWh LFP battery technology, the product combines enhanced range and durability with distinctive features such as a 37-litre under-seat storage, strong metal body with easy charge-flip key, Kinetic Assist and My Kiney voice-enabled features. The combination of its iconic design, practical technology and everyday usability has also earned the Kinetic DX the “Viewers’ Choice EV Scooter of the Year” recognition from the Times of India group.

Further, reinforcing Kinetic’s design-led approach, Kinetic Watts & Volts won two titles at India’s Best Design Awards 2026: ‘India’s Best In-House Design Studios 2026’ and ‘India’s Best Design Project 2026’. These recognitions reflect the company’s focus on combining its iconic brand heritage with contemporary design, innovation and customer-centric engineering.

HEALTHY VERTICALS

Reflecting the growing confidence of its own stakeholders, Kinetic’s promoter shareholding has risen from 50% to 69.27% over the last four years. This significant increase in promoter participation reinforces stakeholder confidence in the company’s long-term growth strategy and its ability to capitalise on the fast-evolving electric mobility landscape in India.

Commenting on the development, Ajinkya Firodia, Vice-Chairman & Managing Director, said, “KEL is entering an exciting phase of growth, with strong momentum across both our automotive components and electric mobility businesses. Our auto components business is seeing a healthy pipeline of new orders, which will support growth and help us work towards our target of improving EBITDA margins to around 12%. At the same time, the response to our Kinetic DX electric scooter has been encouraging, giving us confidence to expand our presence across markets. With continued investments in capacity, technology and our retail network, we are focused on scaling both businesses and building Kinetic into a leading and enduring player in India’s electric mobility segment.”

With a clear focus on execution and long-term growth, the company is strengthening its capabilities across its businesses while building on its engineering heritage and market experience. The company also remains focused on scaling sustainably, and establishing Kinetic as a strong and enduring name in India’s evolving mobility landscape.

KEL has been in India’s automotive manufacturing sector for over five decades and operates one of India’s most enduring component facilities in Ahmednagar, supported by an advanced technology and engineering base. The company supplies to leading OEMs, including Tata Motors, Mahindra & Mahindra, Ashok Leyland, Renault, American Axle, Magna Powertrain and Sonalika Tractors, among others. Kinetic Watts and Volts Ltd (KWVL) is a subsidiary of KEL, wherein it holds 86.15% ownership. KWVL reported a turnover of Rs 8 crore during FY 26 and is engaged in electric mobility and electric vehicles (EVs).

E.B.I.T.D.A. POOR

On a consolidated basis, in Q1 FY27 the company reported net revenue of Rs 51 crore and net loss of Rs 13 crore, resulting in a negative EPS of Rs 4.55 on the equity capital of Rs 26.91 crore. During the full financial year 2026, it achieved net revenue of Rs 157.19 crore, PAT was Rs 87 lakh and EPS was 42 paise. Needless to mention, KEL needs to improve on its EBITDA margins.

Under the circumstances, it might not be an easy ride for a new entrant like KEL to establish and succeed vis-à-vis seasoned and highly resourceful peer groups. Another vital aspect is that KEL’s annual installed production capacity of scooters is likely to be limited to around 35,000-40,000 units in the first year. Industry experts feel this would be inadequate numbers, both from a wider market presence and a break-even perspective. Size does matter, hence it will be inevitable for the company to scale-up once the current capacity utilisation reaches at certain point. Undoubtedly, the promoter group is enjoying an excellent reputation and possesses required capabilities. Moreover, they have extended all support to the project.

E.V.-STOCK LINK

Currently, the stock is priced at Rs 246 with a yearly high-low of Rs 365-175 and market capitalisation of Rs 661 crore. The success of the EV project is crucial for the stock to attract investors, because the company’s mainstream business of auto components does not have any impressive numbers in terms of revenue and profits. Potential investors should certainly keep the scrip on their watchlist and enter and start accumulating gradually, in line with positive developments going forward.