Kirloskar Brothers Limited (KIRLOSBROS) Financial Results — Revenue ₹14,151 Cr

Investor Takeaways

Q4 FY'26 consolidated revenue grew 10% YoY to ₹14.151 billion, with full-year revenue at ₹45.380 billion (1% YoY), driven by 25% international growth.

Q4 PAT reached ₹1.121 billion, and full-year PAT was ₹3.772 billion, supported by a ₹24.680 billion domestic and ₹14.808 billion international order book.

Final dividend of Rs.7 per share (350% payout) was recommended amid margin recovery efforts.

14.8% EBITDA margin in Q4; 30% YoY growth in domestic orders; 21% YoY growth in international orders; ₹389 million exceptional items related to Labour Code implementation.

Forward guidance: Expect double-digit growth in FY27; target margin recovery by third quarter; service business revival to drive margins to FY25 levels; participation in Bharat Small Modular Reactor tenders; modular pump solutions for US data centers.

Shareholders should note strong order book execution and margin recovery efforts, though full-year domestic revenue declined 3% despite Q4 growth.

Overall Tone: Neutral

Key Financial Highlights

Metric	Value	YoY Change
Revenue	₹14,151 Cr	10%
Net Profit	₹1,121 Cr	N/A
EBITDA Margin	14.8%	N/A
EPS	₹14.06	N/A
OPM	14.8%	N/A

What Changed

Kirloskar Brothers reported consolidated Q4 FY'26 revenue of ₹14.151 billion (10% YoY growth), with full-year revenue at ₹45.380 billion (1% YoY), driven by 25% international growth. Q4 PAT reached ₹1.121 billion, and full-year PAT was ₹3.772 billion, supported by a ₹24.680 billion domestic and ₹14.808 billion international order book. The company reported 14.8% EBITDA margin in Q4, with 30% YoY growth in domestic orders and 21% YoY growth in international orders. ₹389 million exceptional items were recorded related to Labour Code implementation. Forward guidance indicates double-digit growth in FY27, with margin recovery targeted by the third quarter and service business revival expected to drive margins to FY25 levels. Participation in Bharat Small Modular Reactor tenders and modular pump solutions for US data centers is highlighted as a growth driver. Full-year domestic revenue declined 3% despite Q4 growth, though the order book remains robust.

Peer Comparison

Company	P/E	ROE	ROCE	Market Cap (₹ Cr)
Kirloskar Brothers Limited	29.67	N/A	N/A	12,764.19
Bharat Electronics Limited	62.03	N/A	N/A	3,09,678.78
Hindustan Aeronautics Limited	33.73	N/A	N/A	2,93,338.09
Cummins India Limited	74.38	N/A	N/A	1,49,466.24

Kirloskar Brothers trades at a lower P/E compared to peers like Cummins India (74.38) and Hindustan Aeronautics (33.73), though higher than Bharat Electronics (62.03), reflecting moderate valuation relative to sector peers.

Risks & Concerns

No specific risks identified in this filing beyond the noted ₹389 million exceptional items related to Labour Code implementation, which may introduce execution uncertainty.

Full-year domestic revenue declined 3% despite Q4 growth, indicating potential headwinds in core domestic demand.

Quarterly Trend

Quarter	Revenue (₹ Cr)	Net Profit (₹ Cr)	OPM%
Q3FY25	1,144.2	118.5	14.5%
Q2FY25	1,035.8	96.7	13.72%
Q1FY25	1,030.9	65.6	10.84%
Q4FY24	1,223.8	152.8	15.62%

The company demonstrated sequential improvement in revenue and profitability, with Q4 FY'26 revenue of ₹14,151 Cr (₹141.51 billion) and PAT of ₹1,121 Cr (₹11.21 billion), reflecting strong order book execution and margin recovery efforts.

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