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Earnings Call Transcript

Kirloskar Brothers Earnings Call Transcript: Key Takeaways

Kirloskar Brothers reported strong revenue and order intake, but faced margin contraction in its international business due to unfavorable sales mix and higher input costs.

Guidance and delivery
Management target Revenue 10.0% FY27
Highlights
Revenue growth24% YoY growth to ₹1,276.7 Cr, driven by strong international execution.
MarginsInternational EBITDA margins moderated to 5.3% due to mix and costs.
Order bookConsolidated order intake surged 68% YoY to ₹2,047.2 Cr.
Demand visibilityStrong visibility in data centers, oil & gas, and nuclear sectors.
Management confidenceBalanced; optimistic about standalone growth but cautious on international margin recovery.

Growth

Consolidated revenue grew 24% YoY to ₹1,276.7 Cr, driven by robust performance in UK, USA, and Dutch subsidiaries.

Outlook

Management guides for double-digit revenue growth in FY27 over FY26 for standalone businesses.

Risks

International margins dipped to 5.3% due to low service-segment contribution and rising UK material/employee costs.

Last quarter's promises, checked

Delivered

  • Guided consolidated double-digit growth → revenue +24% YoY to ₹1,276.7 Cr (= BEAT)
  • Guided Q2 dispatch recovery after foundry inventory build → standalone revenue +23%, EBITDA +37% (= BEAT)

Partly delivered

  • Guided standalone double-digit FY27 growth → standalone revenue +23% in quarter, full year unproven (= PARTIAL)
  • Guided ₹217 Cr oil & gas book executed within FY27 → oil & gas sales 5x YoY, full year unproven (= PARTIAL)

Missed

  • Guided services-led intl margin recovery from Q2 → intl EBITDA 5.1%→5.3%, services contribution still low (= MISS)
Source

Earnings Call Transcript filed with NSE, NSE: KIRLOSBROS. Summary written with AI assistance from the document.

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Kirloskar Brothers Ltd: key numbers

Share price
₹1,601.10
Market cap
₹12,714 Cr
Revenue (annual)
₹4,538 Cr
Net profit (annual)
₹373.6 Cr
P/E (TTM)
33.8×Sector 52.2×
Promoter holding
65.95%+0.00% QoQ
FII holding
6.12%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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