KIRLOSBROS - Kirl. Brothers
📢 Recent Corporate Announcements
Kirloskar Brothers Limited has submitted a formal response to the stock exchange regarding a significant increase in its trading volume. The exchange initiated the query to ensure that all price-sensitive information is available to the public and to safeguard investor interests. Such inquiries are standard regulatory procedures when unusual market activity is detected. The company's submission on March 9, 2026, indicates compliance with disclosure norms, though no specific material event was cited as the cause for the volume surge.
- Exchange observed a significant spurt in trading volume for Kirloskar Brothers Limited shares.
- Regulatory query issued to ensure transparency and protect the interest of the investors.
- Company submitted its formal response to the exchange on March 9, 2026.
- The clarification process follows standard market surveillance protocols for unusual activity.
Kirloskar Brothers Limited (KBL) has officially informed the stock exchanges regarding the receipt of new orders and contracts. While the specific financial value of these contracts was not detailed in the brief, the announcement indicates continued business momentum for the pump manufacturing leader. These wins are expected to bolster the company's order book and provide revenue visibility for upcoming quarters. Investors should monitor for further disclosures regarding the scope and execution timelines of these projects.
- Kirloskar Brothers Limited reported the bagging of new orders/contracts in a regulatory filing.
- The announcement was digitally signed and submitted on February 27, 2026.
- The new contracts contribute to the company's existing project pipeline in the fluid management sector.
- This development reinforces KBL's market position as a preferred provider of engineering and pump solutions.
NSE Sustainability Ratings & Analytics Limited has assigned Kirloskar Brothers Limited an overall ESG rating of 67. The company has been placed in the 'Aspiring' category based on its disclosures for the financial year 2024-25. This was an independent assessment conducted by the rating agency using public domain data, rather than a company-commissioned report. The rating provides a standardized benchmark for the company's performance across environmental, social, and governance parameters.
- Assigned an overall Environmental, Social, and Governance (ESG) rating of 67.
- Classified under the 'Aspiring' category based on FY 2024-25 disclosures.
- Rating was independently prepared by NSE Sustainability without company engagement.
- Assessment is based on data available in the public domain as per SEBI regulations.
Kirloskar Brothers reported a consolidated revenue of ₹1,116 crores for Q3 FY26, with EBITDA margins standing at 14.4%. While the company faced temporary headwinds due to ERP implementation and delayed Jal Jeevan Mission (JJM) funding, the domestic order book showed strong resilience, growing 25% YoY to ₹2,438 crores. International operations performed well, particularly in the Netherlands and the US, contributing to a total international order book of ₹1,289 crores. Management remains focused on profitability and cash flow, maintaining a positive outlook for the coming quarters despite short-term execution delays.
- Consolidated revenue for Q3 FY26 reached ₹1,116 crores with an EBITDA of ₹161 crores (14.4% margin).
- Domestic order book (excluding small pumps) grew by 25% YoY to ₹2,438 crores, indicating strong demand.
- International order book expanded by 13% YoY to ₹1,289 crores, with Netherlands operations growing 155%.
- ERP implementation and JJM funding delays impacted revenue by approximately ₹100-₹150 crores during the quarter.
- 9M FY26 EBITDA margin stood at 13.2% on a total revenue of ₹3,123 crores.
Kirloskar Brothers Limited has informed the stock exchanges that the audio recording of its analyst and investor conference call is now available. The call, held on February 06, 2026, focused on the company's unaudited financial results for the quarter and nine months ended December 31, 2025. This disclosure is a standard compliance requirement under SEBI Listing Obligations and Disclosure Requirements. A written transcript of the discussion is expected to be released in due course.
- Audio recording of the Q3 and 9M FY26 earnings call is now accessible on the company website.
- The call followed the release of financial results for the period ending December 31, 2025.
- Compliance maintained under Regulation 30 and 46 of SEBI LODR Regulations.
- Management commentary and investor Q&A from the session are captured in the recording.
- A formal written transcript will be filed with the exchanges and uploaded to the website shortly.
Kirloskar Brothers reported a mixed Q3 FY26 with consolidated revenue dipping 2.4% YoY to ₹1,116 crore and EBITDA falling 11.9% to ₹161 crore. Despite the operational dip, PAT grew 5.8% to ₹125.4 crore, supported by a tax credit and significant margin expansion in the standalone business. The company's total pending orderbook reached a robust ₹3,727 crore, providing strong revenue visibility. Standalone EBITDA margins showed exceptional strength, rising to 19.5% from 11.8% in the previous year's quarter.
- Consolidated Revenue for Q3 FY26 stood at ₹1,116.2 crore, down 2.4% from ₹1,144.2 crore YoY.
- Consolidated PAT increased by 5.8% YoY to ₹125.4 crore, with PAT margins improving to 11.2% from 10.4%.
- Total pending orderbook reached a record ₹3,727 crore, with new orders received during the quarter worth ₹1,449 crore.
- Standalone business EBITDA margin expanded significantly to 19.5% compared to 11.8% in Q3 FY25.
- Irrigation and Water Resource Management remains the largest segment in the standalone orderbook at ₹974 crore.
Kirloskar Brothers Limited (KBL) reported a mixed set of results for Q3 FY26, with revenue declining 2.4% YoY to Rs 1,116 crore and EBITDA falling 11.9% to Rs 161 crore. Despite operational pressure, PAT grew 5.8% YoY to Rs 125.4 crore, supported by lower tax expenses and higher other income. The highlight of the announcement is the robust consolidated pending orderbook, which reached Rs 3,727 crore, up from Rs 3,094 crore in the previous year, indicating strong future revenue visibility. The company maintained a healthy ROCE of 24.7% as of September 2025.
- Q3 FY26 Revenue from operations stood at Rs 1,116 crore, a slight decline of 2.4% compared to Q3 FY25.
- Consolidated PAT increased by 5.8% YoY to Rs 125.4 crore, with PAT margins improving by 88 bps to 11.2%.
- Total pending orderbook reached a record Rs 3,727 crore, with domestic orders at Rs 2,438 crore and overseas at Rs 1,289 crore.
- EBITDA margins contracted by 155 bps YoY to 14.4% due to higher employee expenses and lower gross margins.
- The Irrigation and Water Resource Management sector remains the largest contributor to the standalone orderbook at Rs 974 crore.
Kirloskar Brothers Limited (KBL) held a board meeting on February 05, 2026, to approve the unaudited financial results for the quarter and nine-month period ending December 31, 2025. The approval covers both standalone and consolidated financial statements as per SEBI listing regulations. While this specific document serves as a formal notification of the meeting's outcome, it confirms the completion of the quarterly reporting cycle. Investors should now examine the detailed financial tables for specific revenue and profit growth metrics.
- Board approved unaudited standalone and consolidated financial results for Q3 FY26.
- The reporting period covers the nine months ended December 31, 2025.
- The board meeting was conducted on February 05, 2026, from 01:45 p.m. to 03:35 p.m.
- Compliance maintained under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Kirloskar Brothers reported a slight decline in consolidated revenue to ₹11,162 million for Q3 FY26, down 2.4% from ₹11,442 million in the same quarter last year. Despite the revenue dip, consolidated net profit grew by 6% YoY to ₹1,254 million, aided by a significant reduction in tax expenses. The company recognized a one-time exceptional charge of ₹156 million related to the new Government of India Labour Codes. Standalone results were notably boosted by a ₹564 million write-back of provisions for old trade receivables, though this had no impact on consolidated figures.
- Consolidated Revenue from Operations decreased by 2.4% YoY to ₹11,162 million.
- Consolidated Net Profit increased to ₹1,254 million from ₹1,185 million in Q3 FY25.
- Exceptional charge of ₹156 million (Consolidated) recognized for the impact of new Labour Codes.
- Standalone results included a ₹564 million write-back of provisions for old trade receivables no longer required.
- Consolidated EPS for the quarter improved to ₹15.65 from ₹14.76 in the previous year's corresponding quarter.
Kirloskar Brothers Limited has scheduled an analyst and investor conference call for February 06, 2026, at 9:30 AM IST. The primary objective is to discuss the financial results for the third quarter and the nine-month period ending December 31, 2025. The call will feature top management, including the Chairman and Managing Director, Joint Managing Director, and the CFO. A formal presentation will be uploaded to the company's website prior to the commencement of the call.
- Conference call scheduled for February 06, 2026, at 09:30 AM IST.
- Discussion will focus on Q3 and 9MFY26 financial performance.
- Senior leadership including CMD Sanjay Kirloskar and CFO Bhavesh Chheda will participate.
- Investor presentation to be made available on the company website before the call.
- Registration via Diamond Pass is available for expedited access to the call.
The Supreme Court of India has made absolute its interim stay on a Bombay High Court order that restricted Kirloskar Proprietary Limited from licensing the 'Kirloskar' trademark to other group companies for overlapping businesses. This legal dispute involves Kirloskar Brothers Limited (KBL) attempting to protect its business interests from competing entities within the same group using the brand name. The Supreme Court has directed the Bombay High Court to resolve the pending appeal expeditiously, preferably within a three-month period. While the stay is a procedural development, the final resolution will determine the level of brand competition KBL faces from its own group affiliates.
- Supreme Court order dated January 9, 2026, stays the Bombay High Court's previous restriction on trademark licensing.
- The dispute involves the use of the 'Kirloskar' mark by group companies with overlapping business interests.
- The Supreme Court has requested the Bombay High Court to dispose of the appeal within 3 months.
- Financial implications of the ongoing litigation remain unascertainable at this juncture.
- The stay is subject to the final decision of the Bombay High Court in the pending appeal.
Kirloskar Brothers Limited has submitted its quarterly compliance certificate for the period ended December 31, 2025, as required under SEBI (Depositories and Participants) Regulations. The company's Registrar and Share Transfer Agent, Bigshare Services, confirmed that all dematerialization requests were processed and the corresponding securities are listed on the stock exchanges. While most requests were completed within the mandatory 15-day window, 5 specific requests were delayed due to required In-person verification (IPV). This filing is a standard administrative procedure to ensure the accuracy of the company's shareholding records.
- Compliance certificate issued for the quarter ended December 31, 2025
- Confirmation that dematerialized securities are listed on BSE and NSE
- Registration of depository names in the register of members generally completed within 15 days
- Only 5 demat requests were delayed beyond the standard timeline due to mandatory IPV requirements
Kirloskar Brothers Limited has been served a GST order from the Chennai North Commissionerate claiming a tax demand of ₹5.29 crore. The order also imposes a penalty of an equal amount of ₹5.29 crore, totaling approximately ₹10.58 crore plus interest. The demand pertains to the period FY 2018-19 to FY 2023-24 and relates to issues like ineligible Input Tax Credit (ITC) on cross-charge invoices and short payment of GST. The company is currently seeking legal advice and does not foresee an immediate material impact on its operations.
- Total tax demand of ₹5,29,49,187 and an equivalent penalty of ₹5,29,49,187.
- Order covers business transactions of the Chennai Regional Office from FY 2018-19 to FY 2023-24.
- Allegations include ineligible ITC on head office cross-charges and non-reversal of ITC on raw material shortages.
- The company has a 90-day window to either pay the arrears or file an appeal against the order.
- Section 74 of the CGST Act has been invoked, alleging suppression of facts to evade tax.
Kirloskar Brothers Limited has announced the closure of its trading window for all designated persons and their immediate relatives starting January 01, 2026. This closure is in compliance with SEBI Insider Trading regulations ahead of the declaration of financial results for the quarter and nine months ending December 31, 2025. The window will remain shut until 48 hours after the results are made public. The specific date for the Board meeting to approve these results will be communicated at a later date.
- Trading window closure effective from January 01, 2026
- Closure pertains to financial results for the quarter and nine months ended December 31, 2025
- Window to reopen 48 hours after the official announcement of financial results
- Compliance maintained under SEBI (Prohibition of Insider Trading) Regulations, 2015
Kirloskar Brothers Limited has announced that the Andhra Pradesh GST authorities have withdrawn tax demand notices of approximately ₹15.48 crore previously issued to the company's directors. The dispute was related to a joint venture project (IVRCL-KBL-MEIL) for the financial year 2017-18. Following the withdrawal of these notices by the tax department, the directors have also withdrawn their respective Writ Petitions from the Andhra Pradesh High Court. This resolution effectively ends the legal proceedings and removes the associated financial liability and regulatory pressure on the management.
- APGST authorities withdrew demand notices totaling ₹15,48,02,928 originally issued to company directors.
- The tax dispute originated from a joint venture project with the Water Resources Department of Andhra Pradesh for FY 2017-18.
- Directors have formally withdrawn Writ Petition WP/47631/2025 following the tax department's endorsement letter dated November 20, 2025.
- The High Court of Andhra Pradesh confirmed the withdrawal of the petition in an order received by the company on December 15, 2025.
Financial Performance
Revenue Growth by Segment
Consolidated revenue grew 12.3% to INR 4,492.2 Cr in FY25. Small and Medium Pump Division (SMPD) achieved 13% growth in FY25. International revenue grew 21% YoY in FY25. However, H1FY26 saw a 2.9% decline to INR 2,006.7 Cr compared to INR 2,066.7 Cr in H1FY25 due to seasonal moderation and deferred orders.
Geographic Revenue Split
International revenue share increased to 35% of total group revenue in FY25, up from 26% in FY24. Key markets include Europe, the U.S., Africa, and Southeast Asia. Domestic revenue accounts for the remaining 65%.
Profitability Margins
Gross margin improved to 53.8% in H1FY26 from 52.3% in H1FY25. Net Profit Margin (PAT) expanded to 9.3% in FY25 from 8.6% in FY24. Standalone Net Profit Margin was 8.66% in FY25 compared to 8.97% in FY24, a 3% decrease.
EBITDA Margin
Consolidated EBITDA margin expanded by 70 bps to 15.2% in FY25 (INR 681 Cr) from 14.5% in FY24. H1FY26 EBITDA margin stood at 12.5% (INR 251 Cr) compared to 13.7% (INR 283 Cr) in H1FY25, reflecting seasonal pressures.
Capital Expenditure
The company plans moderate annual capital expenditure of INR 150-200 Cr over the medium term to support manufacturing efficiency and product development.
Credit Rating & Borrowing
CRISIL reaffirmed 'CRISIL AA/Stable' for long-term and 'CRISIL A1+' for short-term ratings. The company is net debt-free with total debt reducing to INR 133 Cr in FY25 from INR 213 Cr in FY24. Interest coverage ratio improved to 24.99x in FY25 from 20.53x in FY24.
Operational Drivers
Raw Materials
Steel, iron, and copper are primary raw materials for pump and valve manufacturing. Specific percentage of total cost for each material is not disclosed in available documents.
Import Sources
Not disclosed in available documents; however, the company operates 11 manufacturing plants globally, suggesting localized sourcing in the US, UK, Netherlands, and South Africa.
Capacity Expansion
Current capacity is not explicitly stated in units; however, the company is expanding its global footprint through 11 manufacturing plants and focusing on 'Buy American' program compliance for US market expansion.
Raw Material Costs
Raw material costs (COGS) were INR 958.5 Cr in H1FY26, representing 47.8% of revenue. The company has improved its ability to pass through raw material price fluctuations to customers, supporting a 13.7% increase in gross profit in FY25.
Manufacturing Efficiency
ROCE improved to 27% in March 2025 from 21.3% in March 2023. The company uses cost-optimization measures and R&D to drive efficiency, with 8 new products earning the India Design Mark.
Strategic Growth
Expected Growth Rate
10-15%
Growth Strategy
Growth will be driven by increasing international revenue share (targeting 35%+), expanding in the US via 'Buy American' compliance, and focusing on high-margin services and spares. The company is also pivoting away from lumpy EPC projects to steady product-based sales in water, power, and irrigation sectors.
Products & Services
Small and medium pumps, industrial pumps, valves, fire protection packages, HVAC packages, and customer service/spares (CSS).
Brand Portfolio
Kirloskar, Kirloskar Brothers Limited (KBL), Kirloskar Ebara Pumps Ltd (KEPL), Rodelta Pumps International.
New Products/Services
8 new products earned the India Design Mark recently; focus is on energy-efficient pumps to replace competitor products in the industrial sector.
Market Expansion
Targeting expansion in Southeast Asia, the US (data centers and HVAC), and South Africa (complying with B-BBEE norms).
Market Share & Ranking
India's largest manufacturer and exporter of pumps with a leadership position in the domestic market.
Strategic Alliances
Joint Venture with Ebara Corporation (Kirloskar Ebara Pumps Ltd - KEPL) for specialized high-end pumps.
External Factors
Industry Trends
The industry is shifting toward energy-efficient fluid management and digital subscription platforms for recurring revenue. Demand is growing from data centers and fire/HVAC packages in developed markets.
Competitive Landscape
Faces intense competition from the unorganized sector in small pumps and global players in high-end industrial segments.
Competitive Moat
Durable advantages include a century-old brand legacy, a massive distribution network in 100+ countries, and high switching costs for specialized industrial pumps. These are sustainable due to the company's shift toward services and spares which lock in customers.
Macro Economic Sensitivity
Sensitive to cyclicality in end-user industries like power, construction, and irrigation. Revenue is tied to government spending on water resource management.
Consumer Behavior
Industrial customers are increasingly prioritizing energy efficiency and lifecycle costs over initial purchase price, favoring KBL's R&D-led products.
Geopolitical Risks
Trade barriers and local sourcing norms (e.g., 'Buy American', B-BBEE in South Africa) require localized manufacturing presence to mitigate risks.
Regulatory & Governance
Industry Regulations
Compliance with 'Buy American' program for US government-funded projects and Broad-Based Black Economic Empowerment (B-BBEE) in South Africa.
Environmental Compliance
High commitment to ESG principles to enhance stakeholder confidence for international operations and access to global capital markets.
Taxation Policy Impact
Direct taxes paid in H1FY26 were INR 74.8 Cr. Effective tax rate is not explicitly stated but follows standard Indian corporate tax norms.
Legal Contingencies
Retention receivables of INR 156 Cr have been outstanding for more than two years in the projects business, which are being monitored for recovery.
Risk Analysis
Key Uncertainties
Turnaround of loss-making subsidiaries (TKSL and Rodelta) and recovery of slow-moving retention receivables (INR 156 Cr) are primary uncertainties.
Geographic Concentration Risk
35% of revenue is international; domestic revenue is concentrated in government-led irrigation and power projects.
Third Party Dependencies
Not disclosed as a major risk; the company has high backward integration through subsidiaries and JVs.
Technology Obsolescence Risk
Mitigated by continuous R&D and 8 new product certifications in the last 5 years.
Credit & Counterparty Risk
Working capital intensive due to the projects business; however, the shift to a product-based model (97% of revenue) has improved the working capital cycle.