Kirloskar Brothers · forward-looking guidance across the available source record.
Guidance tracker
Management maintained confidence in delivering double-digit revenue growth on standalone basis over FY26, backed by strong order book of ₹2,558 crore and improved execution capabilities post-foundry modernization.
Service contracts for SP UK (chemical/petrochemical plants) idled due to high European energy prices; new contracts with power plants and water utilities expected to kick in during Q3, improving blended margins.
Delayed execution in Dutch entities (Rodella) impacting margins; management expects order execution to normalize in next two quarters, bringing profitability in line with expectations.
Normal capital expenditure equals depreciation, focused on modernization, rebottlenecking, and quality requirements across manufacturing facilities.
Management expressed high confidence in meeting double-digit revenue growth targets for full year FY26, based on H2 seasonality (60-62% of revenue historically in H2), robust order book position, and improving operational execution.
Company historically delivers 35-38% in H1 and 60-62% in H2; management expects H2 execution on order book and Jal Jeevan dispatch normalization to drive full-year performance in line with aspirations.
Management expects UK subsidiary (Syntraflow) margins to return to double-digit levels in medium term as service revenue mix improves and new water/power plant service contracts ramp up, offsetting current chemical/steel sector softness.
KBL has been declared L1 (lowest bidder) for retail petroleum pump sets at IOC; order received and execution timeline is approximately 9 months. Domestic market focus initially before exploring exports.
Management stated the company will always strive for double-digit growth while prioritizing cash flow, profitability, and revenues in that order.
Casting production which had dipped to 200-300 per day is expected to return to 700/day target, enabling improved execution in Q4.
With Ed Milliband focused on net zero and energy prices remaining high, management expects continued softness in energy-intensive service contracts while pivoting to essential industries and water utilities.
Management aims for double-digit revenue growth in FY27, driven by strong order book and operational improvements, though geopolitical risks remain.
Alok Kirloskar expects international EBITDA margins to realign to FY25 levels by the third quarter of calendar 2026, as service mix improves.
SAP ERP implementation at the foundry is largely stabilized and expected to improve operational efficiency, cost control, and order execution going forward.