KIRLOSBROS
Micro CapKirloskar Brothers Limited
Industrials
Kirloskar Brothers Limited (KBL) is India's first and largest pump manufacturer, established in 1888. It provides fluid management solutions across 20+ sectors, serving 6 continents and 120+ countries with 10 domestic and 7 international manufacturing facilities. KBL is a global company with diversified product portfolio and business models.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Mixed fundamentals, management trust is supportive, price trend is neutral, and recent execution is mixed.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Bad · 0/100PAT -19% YoY · margin compression · Rev +10% YoY · +27% QoQ
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,415 Cr | +10.5% | +26.8% |
| EBITDA | ₹182 Cr | -4.2% | +28.2% |
| Operating margin | 13.0% | -200 bps | +0 bps |
| PAT | ₹112 Cr | -18.8% | -10.4% |
| PAT margin | 7.9% | -285 bps | -328 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
KBL reported Q4 FY26 revenue up 10.4% YoY to ₹14,151 Mn, but EBITDA declined 2.7% YoY to ₹2,093 Mn (14.8% margin) and PAT fell 18.6% YoY to ₹1,121 Mn. Full-year FY26 revenue grew 1.0% YoY to ₹45,380 Mn, with EBITDA down 8.8% YoY to ₹6,213 Mn (13.7% margin) and PAT down 9.9% YoY to ₹3,772 Mn.
While the order book remains robust, Q4 and FY26 results show significant margin contraction and PAT decline, despite revenue growth. Increased working capital requirements are also a concern. Management's strategic shift to higher-margin products and reduced EPC exposure is positive but not yet reflected in current profitability.
Revenue by Product Type (KBL Standalone)
Latest issuer-disclosed distribution across 4 reported categories.
Focus on Value-Added Products & Services
Management aims to increase the share of value-added products across geographies and subscription services in key international subsidiaries.
Monetize Intellectual Property
The company plans to monetize its digital IP, including 20 awarded patents, by expanding contribution from services business and value-added products.
Leverage Global Presence
KBL intends to expand and deepen geographic presence by leveraging its international subsidiaries while complying with local sourcing norms.
Reduced EPC Business Exposure
The share of low-margin, working capital intensive EPC orders to revenue has drastically reduced from 10% in FY20 to 3% in FY26, with selective exposure to profitable contracts.
Cost Synergies from Local Presence
Localized global presence leads to reduced turnaround time, lower freight costs, and local value addition by subsidiaries.
Duty-free Access to ASEAN
Value addition in Thailand provides duty-free access to the fast-growing ASEAN region.
Compliance with Local Sourcing Norms
SPP Inc. USA is compliant with the 'Buy American' program, and South African subsidiaries comply with the Broad-Based Black Economic Empowerment Program.
Labour Code Changes Impact
An exceptional item of ₹389 Mn in FY26 (₹258 Mn in Q4 FY26) was recorded due to a one-time impact from Labour Code changes.
Margin Pressure
EBITDA and PAT margins declined significantly in Q4 and FY26, indicating pressure on overall profitability.
Working Capital Management
Current trade receivables increased by 34.5% YoY and inventories by 2.2% YoY, indicating higher working capital requirements.
International Business Profitability
KBIBV Group EBITDA margin declined to 9.2% in FY26 from 12.3% in FY25, with SPP UK and Dutch Entities showing significant margin drops.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
Q4 results are important for sequential momentum and recent performance, especially with margin trends. Full-year (FY26) results provide a comprehensive view of annual performance and are less susceptible to seasonal fluctuations, which is relevant for an industrial company with project-based business.
Order Inflow
PositiveTotal Orders Received in Q4 FY26 was ₹18,179 Mn, up from ₹14,737 Mn in Q4 FY25.
Order Book
PositiveTotal Pending Orderbook as of Q4 FY26 was ₹39,488 Mn, up from ₹31,176 Mn in Q4 FY25, implying strong revenue visibility.
EBITDA Margin
NegativeEBITDA Margin for Q4 FY26 was 14.8% (Q4 FY25: 16.8%) and for FY26 was 13.7% (FY25: 15.2%).
PAT Margin
NegativePAT Margin for Q4 FY26 was 7.9% (Q4 FY25: 10.8%) and for FY26 was 8.3% (FY25: 9.3%).
Focus on Value-Added Products & Services
Management aims to increase the share of value-added products across geographies and subscription services in key international subsidiaries.
Monetize Digital IPs
The company plans to monetize its digital IP acquired over years by expanding contribution from services business and value-added products.
Debottlenecking & Cost Optimisation
Management is focused on debottlenecking at key domestic subsidiaries and implementing cost optimization across all subsidiaries.
Reduced EPC Exposure
The company has reduced its exposure to low-margin, working capital intensive EPC orders, with the share of EPC to revenue at 3% in FY26.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| EBITDA Margin | 13.7% (FY26) | Improvement towards historical levels (e.g., FY25: 15.2%) driven by value-added products and cost optimization. |
| Order Book Conversion/Execution | ₹39,488 Mn pending orderbook | Timely execution of the robust order book into revenue and improved revenue cover. |
| Working Capital Cycle | Trade receivables ₹6,627 Mn, Inventories ₹8,724 Mn | Reduction in working capital days and improved cash conversion cycle. |
| International Business Profitability | KBIBV Group EBITDA margin 9.2% (FY26) | Turnaround and margin improvement in international subsidiaries, especially SPP UK and Dutch entities. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
55NeutralSMA20 +4.1% / mo
Technical chart
KIRLOSBROSweekly · 6M+4.6%Technical trend read
Bullish setupTrend is constructive — long-term trend unclear. RSI 58.
- RSI(14) at 58 — rising, no extreme reading.
- MACD above signal, histogram expanding — bullish momentum building.
- 8% off 52W high · 29% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
FAIR VALUEWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 8/9.
- Fair-value margin of safety is positive at 18.9%.
- Balance sheet contributes 11/15 to the score.
Main drags
- Valuation is weaker at 4/30; verify the latest quarterly trend.
- Cash flow is weaker at 4/10; verify the latest quarterly trend.
- Quality is weaker at 11/20; verify the latest quarterly trend.
Blended valuation: PE, EV/EBITDA, FCF yield, and balance-sheet checks
For this sector, IndiaPulse uses a blended lens rather than relying on a single valuation ratio.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 87th percentile of the scored universe and 87th percentile within Industrials. No major sub-score weakness stands out.
High Trust Lite: Promoter holding is 66%. Key concern: ROCE trend is -4.5%.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Industrials: 87th pctile, median 68 · Micro: 80th pctile, median 71
0 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 66%.
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 1%.
- ▸10 years of positive FCF.
Trust risks
- ▸ROCE trend is -4.5%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 33.40
- P/B
- 5.48
- EV/EBITDA
- 21.35
- Market Cap
- 13502.00Cr
Profitability
- ROE
- 17.70%
- ROCE
- 20.80%
- ROA
- 8.55%
- Dividend Y
- 0.41%
Growth (CAGR)
- Revenue 5Y
- 11.00%
- EPS 5Y
- 20.00%
- Revenue 3Y
- 7.00%
- EPS 3Y
- 20.00%
Balance Sheet
- Debt/Equity
- 0.10
- Interest Coverage
- 18.13×
- Altman Z
- 6.59
- Book Value
- 310.00
Cash Flow
- FCF Yield
- 0.93%
- FCF Positive Y
- 10/5
- OCF
- 334.00 Cr
- EPS TTM
- 47.04
Shareholding
- Promoter Hold
- 65.95%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 32%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Industrials — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.