Kirloskar Brothers Q2: Revenue Stable at Rs 1,028 Crores Amid Challenges, Order Book Grows

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

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

Facility	Rating
Long-term rating	CRISIL AA/Positive (outlook revised from 'Stable')
Short-term rating	CRISIL A1+ (reaffirmed)
Total bank loan facilities rated	Rs. 1,700.00 crore

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.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.48%	-3.81%	-11.34%	-8.86%	-10.30%	+1,498.99%

Kirloskar Brothers Limited (KBL), a prominent player in the pump manufacturing industry, has initiated a postal ballot to seek shareholder approval for the appointment of Mr. Brij Bhushan Nagpal as an Independent Director. This move comes as part of the company's efforts to strengthen its board with professionals from diverse backgrounds.

Key Details of the Appointment

Aspect	Details
Nominee	Mr. Brij Bhushan Nagpal
Position	Independent Director
Effective Date	November 3, 2025
Term	5 years (until November 2, 2030)
Voting Period	November 7, 2025 (9:00 AM) to December 6, 2025 (5:00 PM)

About Mr. Brij Bhushan Nagpal

Mr. Nagpal brings over 40 years of corporate experience to KBL's board. His expertise spans various areas including:

Strategic planning and business management
Commercial and business controls
Acquisitions and sale of businesses
Digital transformation
Legal affairs and corporate litigations
Finance, audits, and credit control

Most recently, Mr. Nagpal served as the Executive Director (Finance and Corporate Affairs) at Luminous Power Technologies Pvt. Ltd., a subsidiary of Schneider Electric SE. During his 16-year tenure, he played a crucial role in driving the company's growth and transformation.

Voting Process

The company is conducting the postal ballot through remote e-voting in compliance with regulatory guidelines. Shareholders whose names appear in the Register of Members as of October 31, 2025 (the cut-off date) are eligible to participate in the voting process.

Board's Recommendation

The Board of Directors, based on the recommendation of the Nomination and Remuneration Committee, has proposed Mr. Nagpal's appointment as an Independent Director. The Board believes that Mr. Nagpal's diverse experience and expertise will benefit the company.

Shareholder Action Required

Eligible shareholders are encouraged to cast their votes electronically during the specified voting period. The results of the postal ballot will be announced within the statutory timelines and will be available on the company's website and stock exchange portals.

This move by Kirloskar Brothers Limited to appoint Mr. Brij Bhushan Nagpal reflects the company's commitment to enhancing its corporate governance and bringing diverse perspectives to its board.