Kirloskar Brothers (500241) Q3 25/26 earnings summary

Executive summary

• Consolidated Q3 FY26 revenue reached INR 1,116 crore (₹11,162 million), with nine-month revenue at INR 3,123 crore (₹31,229 million); standalone Q3 revenue was ₹6,479 million.

• Q3 FY26 EBITDA was INR 161 crore (14.4% margin); nine-month EBITDA at INR 412 crore (13.2% margin); Q3 PAT was INR 125 crore (11.2% margin), and consolidated profit attributable to equity holders was ₹1,243 million.

• Standalone performance was impacted by a slowdown and delayed JJM funding, but the order book grew 25% YoY to INR 2,438 crore (excluding small pumps).

• International operations saw strong growth, especially in the US (15% YoY) and Netherlands (155% YoY), with consolidated international revenue at ₹4,803 million.

• The company continues its transformation journey, focusing on innovation, digitalization, and sustainability.

Financial highlights

• Q3 FY26 revenue declined 2.4% YoY; nine-month revenue down 2.7% YoY.

• Q3 FY26 EBITDA margin was 14.4%, down 155 bps YoY; nine-month EBITDA margin at 13.2%, down 132 bps YoY.

• Q3 FY26 PAT margin improved by 88 bps to 11.2%; nine-month PAT margin at 8.5%.

• Q3 FY26 EPS was Rs. 15.7; consolidated EPS was ₹15.65.

• ROCE (annualized) improved to 29.0% as of Mar-25.

Outlook and guidance

• Strong orderbook of Rs. 3,727 crore as of Q3 FY26, indicating robust revenue visibility.

• Optimism for sustainable and profitable growth, supported by a robust order pipeline and operational excellence.

• Focus on increasing value-added products, digital transformation, and reducing EPC exposure.

• Execution expected to improve as ERP-related foundry issues are resolved.