Kirloskar Brothers Limited Earnings Summary — Q1 FY2027
Kirloskar Brothers Reports Stable Consolidated Profitability Amidst Strong Revenue Growth in Fluid Machinery
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue declined 21.9% sequentially in Q1 FY2027.
- Revenue of ₹1,105 Cr is 12.9% higher year-on-year.
- Revenue has compounded at -4.4% annualised over the last 10 quarters.
- Net profit of ₹67 Cr is 0.1% below the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Net profit has compounded at -30.7% annualised across the period.
- Operating margin stands at 10.5% in Q1 FY2027.
- Operating margin compressed by 93 bps year-on-year.
- Over the last two years operating margin has contracted by 36 bps.
- PBT margin is 8.6%.
- Expenses grew 14.0% against revenue growth of 12.9%.
- Operating profit of ₹116 Cr is 3.7% higher year-on-year.
- Operating leverage has been under pressure recently.
- 3 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 42/100 (Moderate) on the latest 10 quarters.
- Business momentum is broadly stable quarter to quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Stable | 1,105 | 1,415 | 1,116 | 1,028 | 979 | 1,281 | 1,144 | 1,036 | 1,031 | 1,224 |
| Expenses | Stable | 989 | 1,233 | 974 | 919 | 867 | 1,092 | 978 | 894 | 919 | 1,033 |
| Operating Profit | Stable | 116 | 182 | 142 | 108 | 112 | 190 | 166 | 142 | 112 | 191 |
| Operating Margin | Stable | 10.5% | 12.9% | 12.7% | 10.6% | 11.4% | 14.8% | 14.5% | 13.7% | 10.8% | 15.6% |
| Other Income | Volatile | 15 | 1 | 4 | 18 | 16 | 24 | 11 | 14 | 15 | 36 |
| Interest | Stable | 8 | 9 | 9 | 7 | 6 | 6 | 8 | 6 | 6 | 8 |
| Depreciation | Improving | 27 | 28 | 25 | 24 | 23 | 24 | 23 | 22 | 21 | 21 |
| Profit Before Tax | Stable | 95 | 147 | 112 | 96 | 98 | 184 | 146 | 129 | 100 | 199 |
| Tax | Volatile | 28 | 42 | -7 | 29 | 28 | 60 | 33 | 34 | 29 | 56 |
| Net Profit | Stable | 67 | 112 | 124 | 71 | 67 | 137 | 117 | 96 | 65 | 152 |
| Net Margin | Stable | 6.0% | 7.9% | 11.1% | 6.9% | 6.8% | 10.7% | 10.2% | 9.2% | 6.3% | 12.4% |
Key Takeaways
- Consolidated revenue grew by 12.9% year-on-year to ₹11,049 million, driven by expansion in both domestic and international markets.
- Standalone net profit improved by 14.9% YoY to ₹540 million, although consolidated net profit remained virtually flat at ₹666 million.
- International operations contributed significantly, with revenue outside India reaching ₹4,229 million, representing approximately 38% of total revenue.
- Operating margins faced pressure, with the consolidated profit before tax and exceptional items margin contracting from 10.1% to 8.6% YoY.
- The company continues to report a healthy share of profit from its joint venture (Kirloskar Ebara Pumps Limited), contributing ₹9 million this quarter.
- Balance sheet remains strong with significant cash reserves, though seasonality affected the sequential (QoQ) performance compared to the peak March quarter.
Management Guidance
Management remains focused on shifting the mix toward high-value services and 'Made to Stock' products to reduce working capital risk and enhance long-term margins.
Sentiment Shift
Stable
While revenue growth is robust, the stagnation in consolidated net profit and sequential margin compression indicates rising operational costs or shifts in product mix that offset top-line gains.
Outlook
The outlook remains positive backed by a strong order intake and the company's strategic pivot toward specialized engineering solutions and digital fluid management, though commodity price volatility remains a key risk.
From the Annual Report (Key Quotes)
“A Century Strong. Infinite Motion Enriching Lives.”
“The Group operates in a single reporting segment of 'Fluid Machinery and Systems'.”
“The Company has received dividend from its group company of Rs 11.375 Mn during the quarter ended 30 June 2026.”
Official Quarterly Documents
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This summary is AI-generated from Kirloskar Brothers Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.