KSB Limited Q4 Results: EBITDA Margin Drops to 8.45% Despite Revenue Growth
KSB Limited's Q4 results showed mixed performance with revenue growing to ₹6 billion from ₹5.95 billion YoY, but profitability metrics declined significantly. EBITDA dropped 25.1% to ₹508 million while EBITDA margin compressed 295 basis points to 8.45%, and net profit fell 23.9% to ₹373 million, reflecting operational headwinds despite revenue expansion.

*this image is generated using AI for illustrative purposes only.
KSB Limited announced its Q4 financial results, showing mixed performance with revenue growth offset by declining profitability margins. The company also completed significant changes in its statutory auditors during the period.
Q4 Financial Performance
KSB Limited delivered revenue growth in Q4 but faced margin pressures that impacted overall profitability. The company's operational metrics showed divergent trends across key performance indicators.
| Metric | Q4 Current | Q4 Previous | Change |
|---|---|---|---|
| Revenue | ₹6.00 billion | ₹5.95 billion | +0.8% |
| EBITDA | ₹508 million | ₹678 million | -25.1% |
| EBITDA Margin | 8.45% | 11.4% | -295 bps |
| Net Profit | ₹373 million | ₹490 million | -23.9% |
The revenue growth of 0.8% to ₹6 billion demonstrates the company's ability to maintain top-line expansion. However, the significant decline in EBITDA from ₹678 million to ₹508 million indicates operational challenges that compressed margins substantially.
Profitability Analysis
The most notable development was the sharp contraction in EBITDA margin, which fell nearly 300 basis points from 11.4% to 8.45%. This margin compression, combined with the 25.1% decline in absolute EBITDA, suggests increased cost pressures or competitive dynamics affecting the business.
| Performance Indicator | Current Period | Previous Period | Impact |
|---|---|---|---|
| Margin Compression | 8.45% | 11.4% | -295 bps |
| Profitability Decline | ₹373M | ₹490M | -23.9% |
| Revenue Growth | ₹6.00B | ₹5.95B | +0.8% |
Statutory Auditor Transition
KSB Limited completed its transition to new statutory auditors during this period. B S R & Co. LLP was appointed as the new statutory auditor, replacing Price Waterhouse Chartered Accountants LLP, which had served since 2017.
| Auditor Details | Information |
|---|---|
| New Auditor | B S R & Co. LLP |
| Previous Auditor | Price Waterhouse Chartered Accountants LLP |
| Appointment Term | Five years |
| Firm Experience | 170+ partners, 4,000+ staff |
The auditor change was driven by management's preference to align with auditors affiliated to the intermediate holding company outside India. Price Waterhouse LLP confirmed no concerns were raised during their tenure.
Business Segment Overview
KSB Limited operates through two primary business segments - Pumps and Valves. The Pumps segment typically contributes the majority of revenue, while the Valves segment provides diversification across industrial applications. The current results reflect the combined performance of both segments amid challenging market conditions.
Historical Stock Returns for KSB
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.68% | -1.76% | +22.96% | +22.88% | +30.90% | +444.91% |
What specific cost pressures or market dynamics caused the 295 basis point margin compression, and are these temporary or structural challenges?
How will the new auditor B S R & Co. LLP's alignment with the intermediate holding company potentially impact KSB's financial reporting or strategic decisions?
Which of KSB's two business segments (Pumps or Valves) was primarily responsible for the margin decline, and what recovery strategies are being implemented?


































