Kirloskar Pneumatic (505283) Q1 26/27 earnings summary

Executive summary

• Record Q1 FY27 revenue from operations of ₹3,003 million, up 10% YoY; EBITDA was ₹54 crore, up 23%, and domestic equipment orders were strong despite geopolitical delays to package bookings.

• The board approved a cash acquisition of 99.49% of KSEA’s voting power to expand South-East Asia reach, subject to approvals.

Financial highlights

• Standalone total income was ₹3,082 million vs ₹2,802 million; PBT was ₹456 million vs ₹368 million and profit for the period ₹341 million vs ₹281 million YoY.

• Consolidated revenue from operations was ₹3,031 million vs ₹2,817 million; PBT was ₹447 million vs ₹340 million and profit for the period ₹332 million vs ₹253 million YoY.

• EBITDA was ₹54 crore vs ₹44 crore; EBITDA margin was 17.6% of total income vs 15.7% YoY.

• Material cost fell to 43.9% of sales from 47.2%, while other expenses rose to 12% from 10.4%.

• Standalone basic EPS was ₹5.25 vs ₹4.33; consolidated basic EPS was ₹5.15 vs ₹4.09, neither annualised.

Outlook and guidance

• FY27 revenue guidance remains ₹2,100 crore despite near-term geopolitical challenges; long-term EBITDA margin aspiration remains 18%–20%.

• Precision engineering dispatches are expected to improve from Q2 and continue through Q3; the business may reach 10%–15% of overall business in 5–7 years.

• Zephyros revenue is expected from Q1, with substantial ramp-up anticipated in FY28; installations were in place at Saswad and Hadapsar, with a third underway.

• Tezcatlipoca orders are expected to exceed ₹100 crore this year; its addressable market is expected to exceed ₹500 crore.