Kirloskar Brothers Q2 FY27 results: net profit up 3.5% to ₹74.70 crore, revenue up 24.2%

How did Kirloskar Brothers perform in Q2 FY27?

Kirloskar Brothers reported consolidated revenue of ₹1,277 crore in Q2 FY27, up ₹249 crore or 24.2% from Q2 FY26 and ₹171.80 crore or 15.5% from Q1 FY27. EBITDA was ₹124.30 crore, up ₹15.90 crore or 14.7% year on year and ₹8.50 crore or 7.3% from the previous quarter. The EBITDA margin was 9.7%, down 0.8 percentage points from both Q2 FY26 and Q1 FY27.

Profit before tax was ₹104.50 crore, against ₹95.90 crore in Q2 FY26 and ₹95.10 crore in Q1 FY27. Net profit was ₹74.70 crore, up ₹2.50 crore or 3.5% year on year and ₹7.10 crore or 10.5% from the previous quarter. Basic EPS was ₹9.28, compared with ₹8.94 and ₹8.39, respectively. On the standalone basis, revenue was ₹799.1 crore and profit after tax was ₹54.4 crore.

What changed in Kirloskar Brothers' costs and profit?

Total expenses were ₹1,191 crore in Q2 FY27, up ₹241.40 crore or 25.4% from Q2 FY26. Cost of materials rose ₹186.80 crore or 38.6% to ₹670.20 crore, employee cost increased ₹24.20 crore or 12.9% to ₹211.60 crore, other expenses rose ₹34.20 crore or 14.3% to ₹273.90 crore, and finance costs increased ₹3.30 crore or 50.8% to ₹9.80 crore. Depreciation was ₹28.90 crore, up ₹5 crore or 20.9%.

Other income increased ₹3.80 crore or 25.2% to ₹18.90 crore, while tax expense rose ₹0.80 crore or 2.8% to ₹29.30 crore. There was no exceptional item in Q2 FY27, compared with a ₹2.80 crore gain in Q2 FY26. The filing attributed lower international margin to a lower contribution from the higher-margin services business, while management also cited lower-margin oil and gas work and 8% U.K. material costs.

How did the first half of FY27 go?

For H1 FY27, consolidated revenue was ₹2,381.6 crore, up ₹374.9 crore or 18.7% from H1 FY26. Total income was ₹2,415.3 crore, up ₹377.6 crore or 18.5%, while profit before tax rose ₹5.4 crore or 2.8% to ₹199.6 crore. Net profit increased ₹2.6 crore or 1.9% to ₹142.3 crore, and EPS was ₹17.67, up ₹0.33 from ₹17.34.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹4,562.4 crore, up from ₹4,406.9 crore at 31 March 2026. Total equity was ₹2,582.0 crore, compared with ₹2,475.9 crore, while borrowings were ₹212.7 crore, up from ₹187.1 crore. Cash was ₹397.4 crore, down from ₹401.0 crore. Inventories increased to ₹1,028.3 crore from ₹872.4 crore, trade receivables were ₹661.0 crore against ₹662.7 crore, and trade payables were ₹781.1 crore against ₹784.3 crore.

For H1 FY27, net cash from operating activities was -₹58.0 crore, compared with ₹105.6 crore in H1 FY26. Investing cash flow was ₹101.7 crore against -₹66.2 crore, financing cash flow was -₹47.3 crore against -₹43.8 crore, and capital expenditure was ₹64.3 crore compared with ₹59.1 crore. The filing showed working-capital changes of -₹1,838 crore in H1 FY27, against -₹138 crore a year earlier.

How has Kirloskar Brothers done over the last 8 quarters?

Revenue rose in each of the last three quarters, reaching ₹1,276.7 crore in Q2 FY27 after ₹1,104.9 crore in Q1 FY27. It peaked at ₹1,415.1 crore in Q4 FY26 and was at its lowest at ₹979.0 crore in Q1 FY26. The current direction was higher from the previous quarter but below the recent peak.

Net profit was ₹74.7 crore in Q2 FY27, up from ₹67.6 crore in Q1 FY27 but below the recent peak of ₹137.8 crore in Q4 FY25. The EBITDA margin reached 9.7% in Q2 FY27, down from 10.5% in Q1 FY27; it had peaked at 14.8% in Q4 FY25 and bottomed at 10.5% in Q2 FY26. The available trend series shows revenue rising year on year in each of the last three quarters and profit in each of the last two.

What else did the company announce?

The Board approved the unaudited standalone and consolidated financial results for the quarter and half-year ended 30 September 2026 on 27 October 2026. The results were reviewed by the Audit Committee, and the company filed an investor presentation and scheduled an analyst conference call for 28 October 2026. No dividend decision or fund-raising announcement was included in the same-day filings.

The company also filed that a SEBI framework had led to a fine of ₹87,320 for non-compliance relating to the composition of the Nomination and Remuneration Committee. The company said it had paid the penalty on 1 September 2026, and the Board noted the matter on 27 October 2026. An updated investor presentation filed on 28 October 2026 corrected a typographical error on slide 10; no appointment was reported in the filings provided.

What did Kirloskar Brothers' management say?

Management maintained guidance for double-digit FY27 revenue growth over FY26 for the standalone businesses. Chairman and Managing Director Sanjay Kirloskar said, “We remain confident of delivering double-digit revenue growth in FY27 over FY26 for our standalone businesses.” The company expects standalone gross-margin compression from commodities to normalise over the next few quarters as price increases are passed through, and expects large consignments to support inventory reduction in subsequent months.

On international operations, management expects margins to increase in H2 FY27 as service contracts activate. Alok Kirloskar, Managing Director of Kirloskar Brothers International B.V., said, “We do expect more of those contracts to be kicked off in the current quarter, but definitely in KBL's fourth quarter, which is, of course, the first quarter of the international companies from Jan to March.” Management targets a service mix of up to about 40% of total business over a three-year cycle.

Management identified commodity inflation, 8% U.K. material costs, lower-margin oil and gas work, delayed service-contract activation, inventory tied up in long-lead capital-goods orders, and uncertainty around nuclear tender pricing and allocation as risks. It said the nuclear casting hurdle was cleared and that the company expects to qualify for the reported 32-pump NPCIL tender. The call also covered order intake of Rs.20,472 million, up 68% year on year, and pending order books of Rs.29,264 million domestically and Rs.17,013 million overseas.

How did Kirloskar Brothers shares react?

The stock moved from ₹1,590.0 after the filing: it fell 3.1% after five minutes, 4.2% after 15 minutes and 0.6% after 30 minutes. On the reaction day, it closed up 1.2% from the previous close of ₹1,551.5. The industry median moved -0.6% on the reaction day and 0.1% by the next day's close, while the Nifty Smallcap 250 moved 0.3% and 1.0%, respectively.

By the next day's close, the stock was up 5.8% from its pre-results close, compared with an industry median move of 0.1%. Its excess move over the industry was 1.8 percentage points on the reaction day and 5.7 percentage points by the next day's close. Earlier reaction-day moves were positive on 7 July 2026, 5 February 2026 and 29 October 2024, and negative on the other listed dates, including -5.2% on 1 August 2025.

How did other Compressors Pumps & Diesel Engines companies do?

Six other Compressors Pumps & Diesel Engines companies that had filed for the quarter were compared. Their median revenue growth was 18.1%; four peers grew slower than Kirloskar Brothers and two grew faster. Of the six peers for which profit was compared, one reported higher profit.