Kirloskar Brothers Limited reported a strong Q2 FY27 with consolidated revenue rising 24% YoY to Rs 1,277 crore. Growth was fueled by a 68% surge in order intake, particularly in nuclear power, oil & gas, and infrastructure sectors. Despite margin pressure from rising material costs, management expects a recovery in the second half of the year.
Kirloskar Brothers Q2 Revenue Jumps 24% To Rs 1,277 Crore
Consolidated revenue stood at Rs 12,767 million, while consolidated order intake surged 68% year-on-year to Rs 20,472 million.
Reader Takeaway: Robust order book and infrastructure demand drive growth, though rising input costs currently weigh on operating margins.
What just happened
Kirloskar Brothers Limited (KBL) delivered a strong second-quarter performance for FY27, marked by double-digit growth across key financial metrics. Consolidated revenue climbed to Rs 12,767 million, a 24% increase compared to the same period last year. On a standalone basis, domestic business performance remained resilient with a 23% revenue growth and a notable 45% jump in Profit After Tax (PAT) to Rs 544 million.
Why this matters
The company’s massive 68% growth in consolidated order intake signals strong future revenue visibility. KBL is heavily benefiting from capital-intensive sectors including nuclear power, oil and gas, and data centers. The company also secured significant new orders for canned motor pumps and safety packages for the nuclear sector, strengthening its foothold in a specialized market.
The backstory
KBL has been strategically positioning itself to capitalize on infrastructure spending in both domestic and international markets. The company's expansion of its international service portfolio, particularly in the UK, is a key part of its long-term strategy to drive recurring revenue and improve service-side margins over the next three years.
Risks to watch
Profitability faced headwinds during the quarter as consolidated EBITDA margins moderated to 11.2%. Rising costs of critical raw materials like copper, gun metal, and steel created immediate pressure on the bottom line. Additionally, some international service contracts are currently facing delays in site evaluations, which has tempered short-term execution speed.
What to track next
Investors should monitor the company's ability to pass on rising input costs to clients, as management maintains it holds a price-leadership position. All eyes will be on the second-half performance of FY27, where the management expects margins to stabilize and recover from current levels.