Kirloskar Brothers
Kirloskar Brothers
Industrial ProductsKey Fundamentals
MicrocapCompressors Pumps & Diesel EnginesIndustrial ProductsTapetide Score
Data-driven rating, 0–100. How it works →
Key Insights
Strengths
1- Company has delivered good profit growth of 19.8% CAGR over last 5 years
Weaknesses
1- The company has delivered a poor sales growth of 10.8% over past five years.
Growth Rate
AI Analysis — Bull vs Bear
Kirloskar Brothers Ltd, a leading industrial pump manufacturer, trades at a market cap of ₹14,216 Cr with a PE of 38.3x and PB of 5.86x. The company has delivered strong profit CAGR of 19-20% over 3-5 years but revenue growth has been modest at 7-11% over the same periods, and TTM sales growth has slowed to 5% with profits declining 4% on a trailing basis.
- Strong long-term profit compounding with 19% CAGR over 3 years and 20% over 5 years, indicating sustained margin expansion
- Impressive 10-year compounded profit growth of 34% CAGR demonstrates the company's ability to scale earnings over full business cycles
- Healthy return on equity profile with 3-year average ROE of 20% and 5-year average of 18%, reflecting efficient capital allocation
- Strong long-term wealth creation with stock CAGR of 38% over 5 years and 28% over 10 years, significantly outperforming broader indices
- Profit growth has consistently outpaced revenue growth (19% vs 7% over 3 years), suggesting operating leverage and improving cost efficiencies
- As a key player in the industrial pumps segment, the company is positioned to benefit from India's capital expenditure cycle across water infrastructure, power, and oil & gas sectors
- Even in the last year when profits declined 4%, the 17% ROE remains above cost of equity for most industrial companies, indicating the business earns economic value
- TTM profit growth has turned negative at -4%, a sharp reversal from the 19-20% CAGR trend of the prior 3-5 years, raising questions about earnings momentum
- Revenue growth has been persistently weak at 10.8% CAGR over 5 years and has further decelerated to just 5% on a TTM basis
- PE of 38.3x is elevated for a company delivering only 5% TTM sales growth and negative TTM profit growth, suggesting the stock prices in significant future improvement
- PB ratio of 5.86x is premium for an industrial manufacturing business, leaving limited margin of safety if growth expectations are not met
- Dividend yield of just 0.38% offers negligible income support, providing little downside cushion during periods of price correction
- Stock has declined 8% over the past 1 year even as broader markets rallied, indicating potential de-rating from peak valuations
- 10-year revenue CAGR of only 6% suggests the core business has structural top-line growth limitations despite the profit improvements driven by margin expansion
- The wide gap between profit growth (20% over 5 years) and sales growth (11% over 5 years) may narrow if input cost inflation returns or pricing power weakens, compressing margins
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
- Supreme Court arbitration order Aug 25
Shares fell 1.22% to ₹1,899 after an Aug 11 Supreme Court order directed a three-member arbitral tribunal to adjudicate family settlement disputes. Financial impact cannot be presently ascertained per the company's Reg 30 disclosure.
- Independent director appointment Sep 7
Lt Gen Dr. Madhuri Kanitkar appointed as Additional Independent Woman Director effective Sep 15, 2026, for a five-year term, strengthening board governance.
- Kirloskar family tribunal constituted Aug 24
Supreme Court constituted a three-member arbitral tribunal with Pune as seat to resolve the long-pending Deed of Family Settlement (Sep 11, 2009) dispute. Two nominee arbitrators must appoint a presiding arbitrator within four weeks.
TL;DR: Kirloskar Brothers remains a strong long-term performer with over 400% returns in five years and ~18% YTD gains. The key risk is legal uncertainty from the Supreme Court-directed arbitration over the Kirloskar family settlement, whose financial impact is unascertainable. Board governance got a boost with a new independent director appointment. Near-term sentiment may stay subdued until the arbitration tribunal's preliminary rulings provide clarity on the dispute's scope.
Quarterly Results
| Particulars | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 900 | 913 | 965 | 1,224 | 1,031 | 1,036 | 1,144 | 1,281 | 979 | 1,028 | 1,116 | 1,415 | 1,105 |
| Expenses | 790 | 818 | 841 | 1,033 | 919 | 894 | 978 | 1,092 | 867 | 919 | 974 | 1,233 | 989 |
| Operating Profit | 110 | 95 | 124 | 191 | 112 | 142 | 166 | 190 | 112 | 108 | 142 | 182 | 116 |
| OPM % | 12% | 10% | 13% | 16% | 11% | 14% | 14% | 15% | 11% | 11% | 13% | 13% | 10% |
| Other Income | 10 | 2 | 16 | 36 | 15 | 14 | 11 | 24 | 16 | 18 | 4 | 1 | 15 |
| Interest | 8 | 6 | 5 | 8 | 6 | 6 | 8 | 6 | 6 | 6 | 9 | 9 | 8 |
| Depreciation | 18 | 19 | 21 | 21 | 21 | 22 | 22 | 24 | 23 | 24 | 25 | 28 | 27 |
| PBT | 95 | 72 | 114 | 199 | 100 | 129 | 146 | 184 | 98 | 96 | 112 | 146 | 95 |
| Tax % | 30% | 34% | 27% | 28% | 29% | 26% | 22% | 33% | 28% | 30% | -7% | 29% | 30% |
| Net Profit | 64 | 51 | 82 | 153 | 66 | 97 | 118 | 138 | 68 | 72 | 125 | 112 | 68 |
| EPS in Rs | 8.02 | 6.35 | 10.31 | 19.17 | 8.2 | 12.05 | 14.76 | 17.27 | 8.4 | 8.94 | 15.65 | 14.04 | 8.39 |
Profit & Loss
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 2,713 | 2,642 | 2,526 | 2,775 | 3,349 | 3,135 | 2,717 | 3,058 | 3,730 | 4,001 | 4,492 | 4,538 | 4,664 |
| Expenses | 2,520 | 2,567 | 2,431 | 2,625 | 3,221 | 2,928 | 2,475 | 2,852 | 3,330 | 3,481 | 3,883 | 3,993 | 4,116 |
| Operating Profit | 193 | 75 | 95 | 151 | 128 | 207 | 241 | 206 | 400 | 520 | 609 | 545 | 548 |
| OPM % | 7% | 2.8% | 3.8% | 5% | 3.8% | 7% | 9% | 7% | 11% | 13% | 14% | 12% | 12% |
| Other Income | 15 | 27 | 31 | 21 | 23 | 37 | 53 | 32 | 22 | 65 | 64 | 38 | 38 |
| Interest | 50 | 51 | 45 | 40 | 47 | 52 | 44 | 33 | 35 | 26 | 25 | 30 | 32 |
| Depreciation | 95 | 66 | 65 | 59 | 64 | 71 | 68 | 70 | 69 | 78 | 89 | 100 | 105 |
| PBT | 63 | -15 | 16 | 73 | 41 | 121 | 182 | 135 | 318 | 481 | 559 | 452 | 449 |
| Tax % | 28% | -25% | 111% | 37% | 113% | 44% | 15% | 40% | 29% | 29% | 28% | 20% | — |
| Net Profit | 45 | -23 | 4 | 50 | 3 | 72 | 161 | 94 | 236 | 350 | 419 | 377 | 377 |
| EPS in Rs | 5.18 | -3.04 | 0.48 | 6.22 | 0.44 | 9.05 | 20.29 | 11.88 | 29.59 | 43.84 | 52.29 | 47.05 | 47.02 |
| Div. Payout % | 10% | -16% | 207% | 40% | 570% | 28% | 15% | 25% | 15% | 14% | 13% | 15% | — |
Balance Sheet
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 16 | 16 | 16 | 16 | 16 | 16 | 16 | 16 | 16 | 16 | 16 | 16 |
| Reserves | 996 | 907 | 882 | 927 | 893 | 927 | 1,089 | 1,162 | 1,388 | 1,703 | 2,077 | 2,448 |
| Borrowings | 355 | 362 | 359 | 346 | 380 | 578 | 331 | 396 | 286 | 192 | 182 | 250 |
| Other Liabilities | 1,258 | 1,166 | 1,194 | 1,266 | 1,377 | 1,327 | 1,279 | 1,289 | 1,326 | 1,413 | 1,391 | 1,693 |
| Total Liabilities | 2,625 | 2,450 | 2,451 | 2,555 | 2,666 | 2,848 | 2,715 | 2,862 | 3,016 | 3,325 | 3,666 | 4,407 |
| Fixed Assets | 571 | 501 | 480 | 461 | 457 | 501 | 481 | 532 | 532 | 634 | 655 | 702 |
| CWIP | 12 | 6 | 4 | 13 | 25 | 51 | 73 | 27 | 82 | 32 | 34 | 58 |
| Investments | 0 | 43 | 46 | 49 | 57 | 104 | 195 | 333 | 317 | 410 | 619 | 758 |
| Other Assets | 2,042 | 1,901 | 1,921 | 2,031 | 2,127 | 2,191 | 1,966 | 1,970 | 2,085 | 2,249 | 2,358 | 2,888 |
| Total Assets | 2,625 | 2,450 | 2,451 | 2,555 | 2,666 | 2,848 | 2,715 | 2,862 | 3,016 | 3,325 | 3,666 | 4,407 |
Cash Flow
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | 127 | 97 | 100 | 110 | 62 | 305 | 317 | 114 | 329 | 370 | 386 | 334 |
| Investing | -134 | -47 | -35 | -44 | -57 | -172 | -145 | -183 | -73 | -166 | -236 | -213 |
| Financing | -2 | -50 | -58 | -52 | -23 | 125 | -315 | 30 | -169 | -159 | -92 | -44 |
| Net Cash Flow | -9 | 0 | 8 | 14 | -19 | 259 | -143 | -39 | 87 | 45 | 57 | 78 |
| Free Cash Flow | -2 | 34 | 56 | 58 | -3 | 168 | 245 | 50 | 209 | 259 | 297 | 204 |
| CFO/OP | 82 | 159 | 100 | 82 | 62 | 165 | 146 | 76 | 99 | 95 | 90 | 86 |
Ratios
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debtor Days | 106 | 78 | 77 | 71 | 66 | 57 | 62 | 62 | 48 | 48 | 40 | 53 |
| Inventory Days | 86 | 99 | 122 | 130 | 123 | 137 | 152 | 140 | 133 | 157 | 142 | 142 |
| Days Payable | 158 | 147 | 155 | 144 | 135 | 119 | 138 | 128 | 112 | 122 | 100 | 128 |
| Cash Conversion Cycle | 33 | 30 | 43 | 58 | 55 | 75 | 76 | 73 | 69 | 83 | 82 | 68 |
| Working Capital Days | 36 | 25 | 21 | 36 | 26 | -5 | 14 | 20 | 28 | 36 | 37 | 46 |
| ROCE % | 9% | 3% | 5% | 9% | 7% | 12% | 15% | 11% | 22% | 27% | 28% | 20% |
Insights
BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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64 extracted metrics + investor summaries across FY07–FY27.
Documents
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Company Information
Kirloskar Brothers is a part of the Kirloskar Group engaged in the business of engineering and manufacturing of systems for fluid management. The core businesses include large infrastructure projects (Water Supply, Power Plants, and Irrigation), Pumps, Valves, Motors and Hydro turbines. [1] [2]
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