Kirloskar Brothers Ltd (KIRLOSBROS) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Ladies and gentlemen, good day, and welcome to the Kirloskar Brothers Limited Q2 FY '27 earnings conference call. This conference call may contain forward-looking statements about the company, which are based on beliefs, opinions, and expectation of the company as on date of this call. These statements are not guarantee of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touchtone phone. I now hand the conference over to Mr. Sanjay Kirloskar, Chairman and Managing Director from Kirloskar Brothers Limited.
Moderator: queue and over to you, sir.
Sanjay Kirloskar (Kirloskar Brothers Limited): Thank you. Good afternoon, everyone. On behalf of Kirloskar Brothers Limited, I extend a very warm welcome to all of you joining us on our call today. I hope everyone has had an opportunity to go through the financial results and the investor presentation, which have been uploaded on the stock exchanges and the company's website. On this call with me, I have Mr. Alok Kirloskar, Managing Director, Kirloskar Brothers International BV, Ms. Rama Kirloskar, Joint Managing Director, KBL and MD, KEPL, Mr. Bhavesh Chedda, Chief Financial Officer, Mr. Devang Trivedi, our Chief Legal, company Secretary, and Strategic Growth Advisors, our Investor Relations Advisors. Let me begin with my remarks by giving some business highlights. I'm pleased to report that during the quarter, consolidated revenues grew by 24% on year-on-year basis, reaching Rs. 12,767 million. And for H1, our consolidated revenues grew by 19% on a year-on-year basis, reaching Rs. 23,816 million. This increase underscores the strong demand for our products and services across various segments, both domestically and internationally. EBITDA for the quarter grew by 16% on year-on-year basis, reaching Rs. 1,432 million with EBITDA margins standing at 11.2%. EBITDA for H1 fiscal year '27 grew by 9%, reaching 2,738 million with an EBITDA margin of 11.5%. During the quarter, we also recorded healthy order inflows across both domestic and international markets. Our consolidated order intake grew by 68% year-on-year to Rs. 20,472 million, providing continued visibility for future growth. Turning to our standalone domestic business, for Q2 FY '27, revenue increased by 23% year-on-year to Rs. 7,991 million, while EBITDA grew by 37% to Rs. 937 million. Profit after tax stood at Rs. 544 million, reflecting a 45% year-on-year growth. Our healthy order book, coupled with our focused approach towards high potential business opportunities, provides us with confidence in our growth outlook. We remain confident of delivering double-digit revenue growth in FY '27 over FY '26 for our standalone businesses. As of September 2026, order book on the domestic front grew by 29% on year-on-year basis, reaching Rs. 29,264 million, which, as you know, excludes the small pumps order book, reflecting and it reflects a strong pipeline. Furthermore, we are seeing good order inflows across segments. On the international front, we reported 24% year-on-year growth in revenue during Q2 FY '27. This performance was primarily driven by strong execution across SPP UK, SPP USA, and the Dutch Group, supported by the robust order book execution. SPP USA continues to witness encouraging traction in data centers, fire, and HVAC project. EBITDA stood at 23- 233 million with an EBITDA margin of 5.3%. This moderation was primarily attributable to a lower contribution from the services business, which traditionally carries higher margins. We're actively focused on expanding the services portfolio, which we believe will support improvement going forward. Our overseas pending order book stood at Rs. 17,013 million, reflecting a growth of 32%, providing strong visibility for the coming quarters. Looking ahead, we are very optimistic about the company's growth trajectory backed by a healthy mix of domestic and international business, a robust order pipeline, and continued focus on operational excellence. Our company is well positioned to deliver sustainable growth in the periods ahead. This is all. We can now begin the question-and-answer session. Thank you.
Moderator: Thank you so much, sir. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles.
Moderator: Our first question comes from the line of Mahesh Bendre with LIC Mutual Fund. Please go ahead.
Mahesh Bendre (LIC Mutual Fund): Hi sir, thank you so much for the opportunities. And very strong performance on sales side and the order intake intake given the current environment. Sir, I have two questions. First is on margin side. In this quarter, I think domestically we have done really well, but it's international pieces which is actually lagging in terms of margin. So, do you anticipate recovery to happen in the second half?
Sanjay Kirloskar (Kirloskar Brothers Limited): Margins to go up in the second half.
Mahesh Bendre (LIC Mutual Fund): Sorry sir, I didn't.
Sanjay Kirloskar (Kirloskar Brothers Limited): I said yes, we do expect margins to go up in the second half as usual. But you know, for the international business, and I'll ask Alok to explain it a little more, we are now in our third quarter and the next, this current quarter will be the fourth quarter for them because they follow the calendar year as the financial year.
Alok Kirloskar (Kirloskar Brothers International BV): Just to add to that, I think one point which was mentioned at the start is that the mix this year has been slower in the UK for services. I have mentioned in previous analysts calls that, you know, we have from order point of view bagged many more of service contracts. But I had also said it takes some time for us to finish the site evaluation and kick off the contract. So, we do expect more of those contracts to be kicked off in the current quarter, but definitely in in KBL's fourth quarter, which is of course the first quarter of the international companies from Jan to March. So, so I think that's the reason why it was mentioned earlier that that the second half should have stronger stronger margins.
Mahesh Bendre (LIC Mutual Fund): Sure. And sir, the ordering has been very strong for domestic as well as international operations. So, is there anything, I mean, we have observed in terms of such a I mean given the current business environment these numbers are very strong. So, anything you would like to share on this?
133 more turns of this transcript: log in to Stocksigma to read the full call.