Kirl.Pneumatic Q2 FY27 Results (NSE: KIRLPNU)
Signal: Revenue declined
The read
The quarter shows a mixed inflection: gross margin expanded 720bps YoY to 54.9% as raw-material intensity fell to 45.5% of revenue, but EBITDA margin contracted 190bps to 15.0% and EBIT fell 31.2% to 395 million; reported PAT of 400 million was also supported by a non-recurring 110 million land gain, so the margin recovery is not yet translating into operating-profit growth.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹326.3 Cr | -15.6% | +7.7% |
| EBIT | ₹39.5 Cr | -31.2% | |
| Net profit | ₹40 Cr | -8.7% | |
| EPS | ₹3.08 | -8.1% | |
| EBIT margin | 15.0% |
P&L walk
Consolidated revenue declined 15.6% YoY to 3,263 million, but gross margin expanded to 54.9% from 47.7%; operating profit before exceptional items fell 31.2% to 395 million, and PAT declined 8.7% to 400 million after a 110 million land-acquisition gain.
Segments
Compression Systems remained the only separately reported operating segment, contributing 3,071 million of revenue and 615 million of result; both declined 13.4% YoY, broadly matching the consolidated slowdown, while Other Non Reportable Segments contributed 192 million of revenue without a separately disclosed result.
Key positives
- Gross margin expanded 720bps YoY to 54.9% as raw-material cost declined to 45.5% of revenue from 50.1%; the filing does not identify the driver.
- Net cash remained strong at 684 million, with 687 million of cash against 3 million of borrowings.
- Operating cash flow was 1,435 million in H1FY27 versus 1,433 million in H1FY26 despite lower YoY revenue and operating profit.
- PPE plus CWIP increased 9.2% YoY to 3,780 million, including a 122 million increase in CWIP, supporting the ongoing capacity or asset-investment cycle.
Key concerns
- Revenue declined 15.6% YoY to 3,263 million and Compression Systems revenue declined 13.4% to 3,071 million.
- EBITDA margin contracted 190bps YoY to 15.0% despite gross-margin expansion, with employee cost rising to 17.4% of revenue from 13.0%.
- Operating profit before exceptional items fell 31.2% YoY to 395 million, indicating that gross-margin improvement did not flow through to operating profit.
- PAT of 400 million included a 110 million exceptional gain from Maharashtra State Infrastructure Development Corporation's acquisition of Nashik land, reducing the quality of reported earnings.
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