28-Oct-2026 08:57:41
KIRLOSKAR PNEUMATIC Q2 CONCALL : REVENUE DOWN 15% YOY, EBITDA FALLS 25%; MANAGEMENT TARGETS DOUBLE-DIGIT FY27 GROWTH & 18–20% EBITDA MARGIN ON ₹2,040 CR+ ORDER BOOK
• MANAGEMENT MAINTAINS FY27 STRONG DOUBLE-DIGIT REVENUE GROWTH TARGET, ALTHOUGH ACHIEVING EARLIER 20% GROWTH ASPIRATION REMAINS CHALLENGING AFTER WEAK H1 PERFORMANCE • MANAGEMENT TARGETS FY27 EBITDA MARGIN OF 18–20%, COMPARED WITH Q2 MARGIN OF 14.9%, SUPPORTED BY BETTER EXECUTION & IMPROVED PRODUCT MIX • MANAGEMENT EXPECTS STRONG H2 FY27 RECOVERY, WITH Q3 DISPATCHES IMPROVING & Q4 EXPECTED TO DELIVER STRONGER PERFORMANCE THAN Q3 • MANAGEMENT MAINTAINS LONG-TERM REVENUE GROWTH ASPIRATION OF APPROXIMATELY 20% ANNUALLY, WITH ORDER BOOKING GROWTH TARGETED AT AROUND 20% • MANAGEMENT TARGETS APPROXIMATELY 15% OF SALES FROM NEW PRODUCTS OVER TIME, SUPPORTED BY ZEPHYROS, KHIONE, HYDRINO & OTHER INDUSTRIAL SOLUTIONS • Q2 REVENUE DECLINED 15.3% YOY TO ₹320 CR FROM ₹378 CR, IMPACTED BY DELAYED PRECISION ENGINEERING DISPATCHES & MIDDLE EAST SHIPMENT DISRUPTIONS • Q2 EBITDA DECLINED APPROXIMATELY 25% YOY TO ₹48.7 CR FROM ₹64.8 CR, WHILE EBITDA MARGIN FELL TO 14.9% FROM 16.8% • H1 FY27 REVENUE STOOD AT APPROXIMATELY ₹620–624 CR VS ₹650 CR YOY, WHILE EBITDA DECLINED TO ₹103 CR FROM ₹109 CR • H1 NET PROFIT INCREASED TO ₹74 CR FROM ₹71.3 CR YOY, BENEFITING FROM EXCEPTIONAL INCOME RELATED TO LAND SURRENDER • ORDER BOOK EXCEEDED ₹2,040 CR AS OF OCTOBER 1, 2026, UP FROM ₹1,863 CR AT FY27 BEGINNING, SUPPORTED BY STRONG CNG & REFRIGERATION ORDERS • PRECISION ENGINEERING CONTRIBUTES APPROXIMATELY 13–14% OF TOTAL ORDER BOOK, WITH MANAGEMENT EXPECTING MOST DELAYED DISPATCHES TO BE COMPLETED DURING Q3–Q4 FY27 • COMPANY MANAGES OVER 1,060 CNG STATIONS UNDER O&M, INCLUDING 90 ADDED DURING H1, WHILE BIOGAS COMPRESSOR DEMAND IS ALSO IMPROVING • COMPANY DISPATCHED INDIA'S FIRST 1,000-BAR HYDROGEN REFUELING STATION, WHILE KOBE COMPRESSORS PARTNERSHIP EXPANDS OPPORTUNITIES IN PETROCHEMICALS, GREEN AMMONIA & STEEL • COMPANY REMAINS DEBT-FREE WITH NET CASH OF ₹513.7 CR, WHILE H1 CAPEX STOOD AT APPROXIMATELY ₹34 CR & DIVIDEND PAYOUT REACHED ₹57 CR • MANAGEMENT REMAINS CONFIDENT IN H2 RECOVERY, BUT DELAYED LARGE-PACKAGE ORDERS, MIDDLE EAST DISRUPTIONS, PRECISION ENGINEERING EXECUTION, ZEPHYROS COMMERCIALISATION & MARGIN RECOVERY REMAIN KEY RISKS
KIRLOSKAR PNEUMATIC COM L