Kirloskar Industries Q2 FY26 Earnings Results

Kirloskar Ind is engaged in the business of Iron castings, Investments (Securities and Properties), Wind power generation and real estate. The Company owns lands, buildings, apartments and offices in Pune, New Delhi and Jaipur. The company has given most of these lands, buildings and offices on a lease and license basis to the group and other companies.

 

Q2 FY26 Earnings Results

• Consolidated Total Income: ₹1,782 crore, up 6% YoY from ₹1,688 crore and 4.3% QoQ from ₹1,716.41 crore, marking the highest quarterly revenue for the company.​

• Profit Before Tax (PBT): ₹144.78 crore, up 12.3% YoY and 9.2% QoQ, indicating healthy operating momentum.​

• Profit After Tax (PAT): ₹98.49 crore, up 7.5% YoY from ₹91.63 crore and 3.2% QoQ from ₹95.48 crore.​

• Earnings Per Share (EPS): ₹49.16, up 18.9% QoQ and 4.2% YoY, reflecting improved per-share profitability.​

• Operating Profit (excl. other income): ₹233.42 crore, operating margin 13.10%, slightly higher than 12.55% YoY, driven by better cost control despite higher employee costs (₹99.60 crore vs ₹93.09 crore in Q2 FY25).​

• PAT margin at 5.49% remains broadly stable vs 5.39% YoY, but impacted by higher depreciation and interest costs and dilution from lower-performing subsidiaries.​

 

Management Commentary & Structural Picture

• Management highlighted record revenues and operating profit supported by strong performance in industrial products (notably Kirloskar Ferrous and Kirloskar Oil Engines) but acknowledged ongoing pressure from some subsidiaries dragging consolidated returns.​

• Capital efficiency is a key concern: ROE has fallen to about 2.2% vs five-year average of 6.4%, and ROCE has dropped to ~6.9% from historical ~14.8%, reflecting suboptimal returns on a large investment portfolio (~₹4,700 crore).​

• Balance sheet remains strong with essentially no long-term debt and interest coverage above 7x, giving financial flexibility but not yet translating into high shareholder returns.​

• Key watch-points: improving returns from subsidiaries, better capital deployment, and narrowing the gap between standalone and consolidated profitability.​

 

 

Q1 FY26 Earnings Results

• Consolidated Revenue: ₹1,705 crore, up about 9% YoY from ₹1,559 crore.​

• PAT: ₹95 crore, up 7% YoY, with EPS around ₹42.1 for the quarter.​

• Segment revenue (Q1 FY26): Iron casting ₹1,035 crore, tubes ₹595 crore, steel ₹358 crore, investments ₹15 crore.​

• Q1 showed strong YoY profit growth and revenue expansion, setting a positive base for H1 FY26.

 

To view the company’s previous earnings and latest concall transcripts, click here  to visit the Alphastreet India news channel.