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 was INR 14,151 million, up 10.4% year-over-year.

• International business Q4 revenue grew 25% YoY and full-year by 7% YoY; domestic Q4 revenue up 3% YoY, but full-year domestic revenue declined 3%.

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

• Order book remains robust: domestic up 30% YoY to INR 24.68 billion, international up 21% to INR 14.808 billion; consolidated pending orders at INR 39,488 million at FY26 end.

• Profit after tax for FY26 was INR 3,772 million, down 9.9% YoY; Q4 PAT was INR 1,121 million, down 18.6% YoY.

Financial highlights

• FY26 EBITDA was INR 6,213 million (margin 13.7%), down from INR 6,811 million (margin 15.2%) in FY25; Q4 EBITDA margin was 14.8%.

• FY26 gross margin was 52.3%, down 40 bps YoY; Q4 gross margin was 51.2%, down 220 bps.

• FY26 PAT margin was 8.3%, down 100 bps YoY; Q4 PAT margin was 7.9%, down 290 bps.

• Earnings per share for FY26 was INR 47.1, compared to INR 52.3 in FY25.

• Net cash from operating activities in FY26 was INR 3,310 million; cash and cash equivalents at year-end were INR 4,010 million.

Outlook and guidance

• Management targets double-digit growth for FY 2027, focusing on value-added products, subscription services, and cost optimization.

• Reduced exposure to low-margin EPC business, with EPC share of revenue down to 3% in FY26.

• Continued emphasis on leveraging global presence and operational improvements for sustainable growth.

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