Kirloskar Brothers (500241) Q1 26/27 earnings summary

Executive summary

• Consolidated Q1 FY27 revenue reached INR 11,049 million, up 13% year-on-year, with EBITDA of INR 1,306 million (+2.4% YoY) and PAT of INR 676 million (+0.1% YoY), driven by robust domestic and international demand.

• Standalone revenue for Q1 FY27 was INR 6,738 million, with standalone net profit after tax at INR 540 million, both showing year-on-year growth.

• Maintained a robust orderbook at INR 40,622 million, supporting strong revenue visibility.

• Continued focus on value-added products, digital solutions, and global expansion.

• Board approved unaudited standalone and consolidated financial results for the quarter ended June 30, 2026.

Financial highlights

• Q1 FY27 EBITDA margin at 11.8%, PAT margin at 6.1%, and ROCE (annualized) at 19.3%.

• Consolidated order intake rose 4% year-on-year to INR 13,954 million, with a strong order pipeline.

• Standalone and consolidated EPS showed year-over-year growth; standalone EPS at INR 6.80, consolidated EPS at INR 8.39.

• Investments (including cash & equivalents) increased to INR 10,716 million by Mar-26.

• Standalone gross margin improved due to product mix, price hikes, and controlled expenses.

Outlook and guidance

• Confident of delivering double-digit revenue growth for both standalone and consolidated businesses in FY 2027.

• Strategic focus on increasing share of value-added products, digital solutions, and monetization of digital IP.

• Margin improvement expected as service business in the U.K. and delayed international orders are executed in upcoming quarters.

• Two-thirds of the standalone order book is expected to be executed within FY 2027, excluding the retail small pump segment.

• Management continues to monitor the impact of the New Labour Codes and will review estimates as further clarifications and rules are notified.