Kirloskar Brothers (500241) Q4 25/26 earnings summary

Executive summary

• Consolidated revenue for FY 2025-26 was INR 45,380 million, up 1% year-over-year; Q4 revenue reached INR 14,151 million, up 10.4% year-over-year.

• International business grew strongly, with Q4 revenue up 25% and full-year up 7%; domestic revenue grew 3% in Q4 but declined 3% for the year.

• Board recommended a final dividend of INR 7 per share (350% of face value) for FY 2025-26, subject to approval.

• Order book at year-end was robust, with consolidated pending orders at INR 39,488 million, supporting future revenue visibility.

• Statutory auditors issued unmodified opinions on both standalone and consolidated results.

Financial highlights

• FY 2025-26 EBITDA was INR 6,213 million (margin 13.7%); Q4 EBITDA margin was 14.8%.

• FY 2025-26 PAT was INR 3,612 million, down from INR 4,034 million in the previous year; Q4 PAT was INR 1,121 million.

• FY 2025-26 gross margin was 52.3%, down 40 bps year-over-year; Q4 gross margin was 51.2%.

• Earnings per share for FY 2025-26 was INR 47.05, down from INR 52.29 in FY 2024-25.

• Net cash from operating activities in FY 2025-26 was INR 3,310 million; cash and cash equivalents at year-end were INR 4,010 million.

Outlook and guidance

• Management remains optimistic for sustainable double-digit growth, supported by a strong order pipeline and operational improvements.

• Focus on increasing share of value-added products and subscription services, and reducing exposure to low-margin EPC business.

• Continued emphasis on cost optimization, product innovation, and leveraging global presence for growth.

• Cautioned that external risks like wars and gas shortages could impact growth.

• The Board scheduled the 106th AGM for July 31, 2026, and set the record date for dividend entitlement as July 24, 2026.