Kirloskar Brothers Ltd

Kirloskar Brothers Limited reported strong financial performance in Q2 and H1FY27, with consolidated revenues growing 24% year-on-year to Rs.12,767 million and 19% for the half-year to Rs.23,816 million. EBITDA increased 16% to Rs.1,432 million, with a margin of 11.2%, and 9% growth to Rs.2,738 million for H1, at 11.5% margin. Domestic standalone revenue rose 23% to Rs.7,991 million, with EBITDA up 37% to Rs.937 million. Order intake grew 68% year-on-year to Rs.20,472 million. Internationally, revenue rose 24% in Q2, driven by SPP U.K., SPP USA, and the Dutch Group, though EBITDA margin was 5.3% due to lower service contributions. The international order book grew 32% to Rs.17,013 million. Management expressed optimism about growth, citing strong domestic and international demand, a robust order pipeline, and operational focus. Margins are expected to improve in H2, with international business recovery anticipated as service contracts ramp up. The company highlighted growth in oil and gas, data centers, and nuclear sectors, with nuclear orders valued at approximately Rs.60-70 crores. Inventory levels increased due to capital goods orders with long lead times, expected to be liquidated in H2. Strategic shifts toward utilities and services are underway, with AMP8 and data centers identified as growth areas. Management noted challenges in the U.K. industrial sector but emphasized opportunities in warehousing and fire pumps.

The document emphasizes strong revenue growth, robust order intake, and optimism about future performance, with management highlighting positive trends in key sectors.