Kirloskar Brothers (500241) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 consolidated revenue was INR 1,028 crore (₹10,277 million), stable year-on-year, with EBITDA at INR 124 crore and PAT at INR 72 crore; H1 FY26 revenue was INR 2,007 crore, EBITDA INR 251 crore, and PAT INR 140 crore.

• Standalone and consolidated results show continued profitability and operational stability, despite margin pressures and seasonal challenges.

• Robust order book of INR 3,564 crore at Q2 FY26 end provides strong revenue visibility for H2 FY26.

• The company is focusing on innovation, automation, and a sustainable, inclusive outlook, with ongoing transformation initiatives.

• Board reviewed and approved unaudited financial results for Q2 and H1 FY26 on 3 November 2025.

Financial highlights

• Q2 FY26 EBITDA margin was 12% (down from 15.1% YoY); PAT margin at 7% (down from 9.3% YoY); H1 FY26 EBITDA margin at 12.5%.

• International operations: U.S. revenue up 21%, Thailand up 158%, South Africa up 27% year-on-year in constant currency.

• International order book expanded 25% year-on-year to INR 1,289 crore.

• EPS for Q2 FY26 was Rs. 8.9 (consolidated ₹8.94); H1 FY26 EPS was Rs. 17.3.

• FX losses of about INR 20 crore (GBP 1.8 million) impacted margins; translation losses from dollar deposits in Europe also noted.

Outlook and guidance

• Management remains optimistic for H2 FY26, expecting to meet double-digit revenue growth aspirations based on historical seasonality and strong order book.

• Strategic focus on increasing value-added products and services, reducing EPC exposure, and leveraging global presence.

• Ongoing cost optimization and debottlenecking at key subsidiaries to improve margins and profitability.

• Emphasis on monetizing digital IP and expanding subscription-based service offerings.

• Urbanization and power sector identified as key growth drivers; continued focus on operational excellence and customer engagement.