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); PAT was INR 125 crore (11.2% margin); consolidated profit attributable to equity holders was ₹1,243 million.

• Standalone performance was impacted by JJM funding delays, but the order book (ex-small pumps) grew 25% YoY to INR 2,438 crore.

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

• The company is focusing on innovation, digitalization, and sustainability, maintaining stability amid external challenges.

Financial highlights

• Q3 FY26 revenue declined 2.4% year-over-year; 9M FY26 revenue down 2.7% year-over-year.

• Domestic subsidiaries posted 10% YoY revenue growth in Q3; international order book expanded 13% YoY to INR 1,289 crore.

• Q3 FY26 EBITDA margin was 14.4%, down 155 bps YoY; PAT margin improved by 88 bps to 11.2%.

• Standalone profit after tax for Q3 FY26 was ₹663 million, up from ₹370 million in Q2 FY26.

• 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.

• Emphasis on cost optimization, debottlenecking, and improved working capital cycle.

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