Kirl. Brothers Q1 FY27 Results (NSE: KIRLOSBROS)
Signal: Margin pressure
The read
Consolidated revenue grew 12.9% YoY but EBITDA margin contracted 230bps to 8.6% due to input cost pressures (material cost +15.3% YoY) and fixed-cost creep (employee +15.1%, depreciation +20.2%); PAT flat as JV profit crashed 88.5% QoQ. Standalone PAT +14.9% YoY benefited from absence of exceptional charge but core trends similar. Margin trajectory remains weak after four consecutive quarters of YoY contraction.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,104.9 Cr | 12.9% | -21.9% |
| EBIT | ₹103.2 Cr | -12.9% | |
| Net profit | ₹67.6 Cr | 0.1% | |
| EPS | ₹8.39 | -0.1% | |
| EBIT margin | 8.6% |
P&L walk
Revenue grew 12.9% YoY but EBITDA margin contracted 230bps to 8.6% as cost of materials rose 100bps to 49.2% and employee costs rose 40bps to 19.2%; PAT flat due to higher depreciation (+20.2% YoY) and finance costs (+30.6% YoY) absorbing the revenue growth.
Segments
Company operates single segment 'Fluid Machinery and Systems'; no segment split.
Key positives
- Consolidated revenue ₹11,049 Mn grew 12.9% YoY, with international revenue ₹4,229 Mn up 18.5%.
- Standalone PAT ₹540 Mn up 14.9% YoY, aided by lower base (no exceptional labour code charge).
- Net profit ex-exceptionals stable YoY despite margin pressure.
Key concerns
- EBITDA margin contracted 230bps YoY to 8.6%, the fifth consecutive quarter of YoY contraction.
- Cost of materials as % of revenue rose 100bps YoY to 49.2%; employee cost rose 15.1% YoY exceeding revenue growth.
- JV profit contribution fell sharply to ₹9 Mn from ₹78 Mn in Q4FY26, adding to earnings volatility.
- Consolidated PAT flat YoY despite 12.9% revenue growth; operating leverage absent.
- Standalone revenue growth of +8.6% YoY lags consolidated, indicating international ops driving top line but not bottom line.
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