Kirloskar Brothers Limited has announced its Q3FY26 financial results under Regulation 33, showing mixed performance with revenue declining to ₹11.16 billion compared to ₹11.44 billion in the previous year. The company reported profit before exceptional items of ₹1.27 billion in Q3FY26, down from ₹1.52 billion in the corresponding quarter of the previous year. Despite these challenges, the company maintained profitability growth with consolidated net profit reaching ₹1.24 billion compared to ₹1.19 billion in the previous year, representing a 4.20% year-on-year growth. The company's Board of Directors approved the unaudited financial results at their meeting held on February 05, 2026.

Q3FY26 Financial Performance

The company's consolidated financial results for Q3FY26 demonstrate resilience in net profit despite revenue and EBITDA pressures. Latest data shows EBITDA declined to ₹1.42 billion in Q3FY26 from ₹1.66 billion in the previous year, with EBITDA margin compressing to 12.7% from 14.5% year-on-year:

The latest data confirms Q3FY26 revenue of ₹11.16 billion versus ₹11.44 billion year-on-year, reflecting ongoing market challenges. Despite revenue decline and EBITDA margin compression, the company achieved an improved PAT margin of 11.24% in Q3FY26, with consolidated net profit attributable to equity holders demonstrating positive growth trajectory.

Strong Order Book Performance

Kirloskar Brothers demonstrated robust order intake and book growth across both domestic and international markets:

The order book as of December 31, 2025 reached ₹3,727 crores, representing a significant 20% growth from ₹3,094 crores in the previous year.

Regulatory and Exceptional Items

The company recognized a one-time impact of ₹156 million in exceptional items due to the Government of India's notification of four consolidated Labour Codes on November 21, 2025. This exceptional item of ₹156 million contributed to the difference between profit before exceptional items and final net profit figures. The amount was determined based on actuarial valuation and guidance from the Institute of Chartered Accountants of India.

Corporate Actions and Merger

During Q3FY26, the National Company Law Tribunal Mumbai Bench approved the merger of step-down subsidiary The Kolhapur Steel Limited into wholly owned subsidiary Karad Projects and Motors Limited, with an appointed date of October 03, 2024. The order was filed with the Registrar of Companies on December 05, 2025.

Earnings Call Recording Available

Following the earnings call held on February 06, 2026 at 9:30 AM IST, the company has uploaded the audio recording on its website under Regulation 30 and 46 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015:

The audio recording provides detailed discussions on Q3FY26 financial performance with analysts and investors, with the transcript to follow in due course.

The Supreme Court has made its interim stay absolute regarding a Bombay High Court ruling concerning Kirloskar Brothers Ltd, providing significant relief to the company in its ongoing legal dispute. The apex court's order dated January 9, 2026, converts the temporary stay granted on October 17, 2025, into an absolute stay, subject to the final decision of the Bombay High Court in the pending appeal.

Supreme Court Order Details

The Supreme Court's comprehensive order addresses the trademark licensing dispute between Kirloskar Proprietary Limited and Kirloskar Brothers Limited. The court clarified that none of the observations made in either the interim order dated October 17, 2025, or the current order dated January 9, 2026, should be treated as opinions on the case merits. Both parties retain the liberty to raise all contentions available to them in facts and law during the appeal proceedings.

Expedited Appeal Timeline

The Supreme Court has specifically requested the Bombay High Court to ensure expeditious disposal of the pending appeal, preferably within three months from the date the order is placed before it. This timeline reflects the court's recognition of the commercial implications involved in the trademark licensing dispute. The company received the Supreme Court order on January 13, 2026, and has disclosed this development under Regulation 30 of SEBI LODR Regulations.

Trademark Licensing Dispute Background

The legal proceedings center around trademark licensing rights within the Kirloskar group companies. The original Bombay High Court order dated October 11, 2025, had modified an earlier ruling from July 25, 2025, expanding restrictions on trademark licensing arrangements. The Supreme Court's intervention provides clarity on the licensing versus assignment distinction, noting that licensing grants privilege while retaining rights with the licensor, whereas assignment may involve rights transfer.

Financial Impact Assessment

Kirloskar Brothers Limited has stated that the expected financial implications of the litigation cannot be ascertained at this juncture. The company has committed to keeping stock exchanges informed of any further developments in the matter. The absolute stay provides operational certainty while the appeal process continues, allowing the company to maintain its business operations without the constraints imposed by the modified High Court order.