Kirloskar Brothers Limited has received a credit rating outlook upgrade from CARE Ratings Limited, which revised the outlook on the company's long-term bank facilities to 'Positive' from 'Stable' while reaffirming the rating at 'CARE AA'. The rating agency communicated this decision on December 12, 2025.

Latest Credit Rating Action

CARE Ratings Limited has taken the following rating actions for Kirloskar Brothers Limited:

The company formally disclosed this development to the stock exchanges on December 13, 2025, in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Rated Bank Facilities

According to the company's regulatory filing, the current rated facilities include:

Previous Rating Framework Comparison

The latest rating action shows a shift from the previous rating framework. Earlier, CRISIL Ratings had rated the company's facilities with total bank loan facilities of ₹1,700.00 crores, which included bank guarantees of ₹1,100.00 crores, proposed long-term bank loans of ₹100.00 crores, and cash credit facilities of ₹500.00 crores.

Company's Financial Performance Context

Kirloskar Brothers Limited, a leading manufacturer of pumps and valves, has been demonstrating improved operational performance. The company's recent financial metrics include consolidated revenue of ₹1,028.00 crores and an order book (excluding small pumps business) of ₹2,127.00 crores, showing 13.00% year-on-year growth.

International Operations Growth

The company's international business has shown strong performance across multiple geographies:

The positive outlook revision by CARE Ratings reflects the expectation of continued improvement in Kirloskar Brothers Limited's business and financial risk profile. The company continues to focus on growth opportunities in sectors including power, urbanization, and data centers, positioning itself for sustainable long-term growth.

Kirloskar Brothers Limited (KBL) has reported a stable performance in the second quarter, with consolidated revenue holding steady at Rs 1,028 crores year-on-year. The company faced headwinds from an extended monsoon and delays in Jal Jeevan Mission fund releases at the state level, despite central fund allocations.

Financial Highlights

• Q2 consolidated revenue: Rs 1,028.00 crores
• H1 revenue: Rs 2,007.00 crores (down 3% year-on-year)
• Q2 EBITDA: Rs 124.00 crores with 12% margins
• Standalone order book (excluding small pumps): Rs 2,127.00 crores (up 13% year-on-year)

Operational Performance

KBL's performance was marked by a mix of challenges and growth across various segments:

• Domestic Market: The company faced temporary setbacks due to an extended monsoon and delays in Jal Jeevan Mission fund releases at the state level.

• International Operations: Showed strong performance with significant growth in key markets:

  • US: 21% growth (constant currency)
  • Thailand: 158% growth (constant currency)
  • South Africa: 27% growth

• Domestic Subsidiaries: Registered 14% revenue growth and 26% PAT improvement year-on-year.

Strategic Developments

1. PetroTurbo Pump Set Order: KBL has secured an order from Indian Oil Corporation Limited (IOCL) for PetroTurbo pump sets, marking its entry into a new product segment dominated by international players.

2. Data Center Focus: The company is actively pursuing opportunities in the growing data center market, particularly in the US, providing fire and cooling systems for these facilities.

3. Service Business Expansion: KBL is working on expanding its service business, especially in the UK and Europe, to offset challenges in certain industrial sectors.

4. AMP8 Program: The company has started receiving orders under the AMP8 program in the UK, which is expected to drive growth in the water infrastructure segment.

Management Commentary

Sanjay Kirloskar, Chairman and Managing Director, expressed confidence in meeting growth aspirations in the second half, citing healthy order inflows and a strong pipeline across segments. The management highlighted urbanization and the power sector as key growth drivers for the company.

Outlook

Despite near-term challenges, KBL's management remains optimistic about the company's growth trajectory. The diversified business model, robust order book, and strategic initiatives in new markets and product segments position the company well for future growth.

Credit Rating Update

CRISIL Ratings Limited has revised its outlook on KBL's long-term bank facilities to 'Positive' from 'Stable' while reaffirming the rating at 'CRISIL AA'. The short-term rating has been reaffirmed at 'CRISIL A1+'. This revision reflects the company's improving financial profile and business prospects.

As Kirloskar Brothers navigates through market challenges and capitalizes on emerging opportunities, the company appears poised for growth in the coming quarters, supported by a strong order book and strategic initiatives across various business segments.