Kirloskar Industries Limited Earnings Summary — Q1 FY2027
Kirloskar Industries Reports Q1 Revenue Growth Driven by Iron Casting but Faces Pressure from High Finance Costs and Exceptional Items
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue declined 28.7% sequentially in Q1 FY2027.
- Revenue of ₹547 Cr is 17.7% higher year-on-year.
- Revenue has compounded at -3.1% annualised over the last 10 quarters.
- Net profit of ₹20 Cr is 29.6% below the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Net profit has compounded at -33.1% annualised across the period.
- Operating margin stands at 5.3% in Q1 FY2027.
- Operating margin compressed by 197 bps year-on-year.
- Over the last two years operating margin has contracted by 259 bps.
- PBT margin is 4.8%.
- Expenses grew 20.2% against revenue growth of 17.7%.
- Operating profit of ₹29 Cr is 14.3% lower year-on-year.
- Operating leverage has been under pressure recently.
- 6 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 has softened and warrants monitoring.
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 | 547 | 767 | 568 | 473 | 465 | 619 | 514 | 394 | 375 | 587 |
| Expenses | Stable | 518 | 712 | 534 | 439 | 431 | 556 | 461 | 372 | 345 | 526 |
| Operating Profit | Volatile | 29 | 55 | 34 | 35 | 34 | 63 | 53 | 22 | 29 | 62 |
| Operating Margin | Stable | 5.3% | 7.2% | 6.0% | 7.3% | 7.2% | 10.2% | 10.3% | 5.5% | 7.9% | 10.5% |
| Other Income | Stable | 11 | 10 | 9 | 12 | 10 | 13 | 9 | 11 | 10 | 12 |
| Interest | Strong Uptrend | 8 | 6 | 5 | 4 | 2 | 4 | 3 | 3 | 3 | 5 |
| Depreciation | Stable | 6 | 6 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 |
| Profit Before Tax | Volatile | 26 | 52 | 33 | 37 | 37 | 68 | 54 | 25 | 32 | 64 |
| Tax | Volatile | 6 | 13 | 9 | 9 | 9 | 18 | 13 | 6 | 8 | 15 |
| Net Profit | Volatile | 20 | 39 | 25 | 28 | 28 | 50 | 41 | 19 | 24 | 49 |
| Net Margin | Softening | 3.6% | 5.1% | 4.3% | 6.0% | 6.0% | 8.1% | 7.9% | 4.8% | 6.4% | 8.3% |
Key Takeaways
- Consolidated revenue saw a modest 4.8% YoY growth, supported by a 15% increase in the Iron Casting segment, despite a decline in Tube segment revenue.
- Net profit plummeted 67% YoY, primarily due to the absence of a large deferred tax credit that benefited the prior year's same quarter (₹107.4 Cr credit in Q1 FY26 vs ₹22.6 Cr charge in Q1 FY27).
- An exceptional charge of ₹29.33 crore was recorded during the quarter, pertaining to stamp duty and expenses for the merger of ISMT Limited with Kirloskar Ferrous Industries.
- The Iron Casting segment remains the primary engine, contributing ₹1,192 crore to segment revenue, while the Steel segment grew significantly to ₹493 crore.
- Total comprehensive income surged to ₹2,471.54 crore due to a massive ₹2,792.68 crore gain on the fair valuation of quoted equity investments (net of tax).
- Finance costs remain elevated at ₹29.67 crore, reflecting the debt-heavy capital structure resulting from recent inorganic expansions.
- Management appointed Mr. Sandeep Gokhale, a seasoned project finance and strategy expert, as an Additional Independent Director.
Management Guidance
Management commentary focuses on the integration of ISMT Limited and Oliver Engineering into the subsidiary Kirloskar Ferrous. The outlook emphasizes navigating the cyclicality of iron and steel markets while managing the higher leverage and depreciation following these acquisitions.
Sentiment Shift
Stable
While headline bottom-line figures were skewed by tax adjustments and exceptional merger costs, core segment revenue remains steady with significant unrealized gains in the investment portfolio.
Outlook
The company’s performance will remain highly tethered to the iron and steel cycle affecting its subsidiary, KFIL. Medium-term prospects depend on successfully realizing synergies from the ISMT merger and managing interest costs in a capital-intensive phase.
From the Annual Report (Key Quotes)
“The financial results for the corresponding quarters of FY 2025-26, have been updated to give effect to the Scheme [of merger].”
“An amount of ₹29.33 crores incurred towards stamp duty and associated expenses has been recorded and disclosed as an Exceptional Item.”
“The Company does not have significant influence on Kirloskar Brothers Limited (KBL)... its financials are not included.”
Official Quarterly Documents
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This summary is AI-generated from Kirloskar Industries Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.