Kirloskar Brothers Q2 Revenue Rises 24% as Orders Jump 68%

Kirloskar Brothers Limited reported 24% year-on-year consolidated revenue growth to ₹1,276.7 crore in Q2 FY27, while order intake rose 68% to ₹2,047.2 crore. The result shows strong demand across domestic and international operations, although the quarterly EBITDA margin of 11.2% reflected pressure from business mix and material costs.

How did Kirloskar Brothers perform in Q2 FY27?

Kirloskar Brothers reported consolidated revenue of ₹1,276.7 crore for Q2 FY27, compared with the year-ago quarter, while EBITDA increased 16% to ₹143.2 crore. EBITDA growth trailed revenue growth, leaving the consolidated EBITDA margin at 11.2%.

For the first half of FY27, consolidated revenue rose 19% year on year to ₹2,381.6 crore. First-half EBITDA grew 9% to ₹273.8 crore, with the EBITDA margin at 11.5%. The figures indicate that revenue momentum remained intact through the first six months, even as profitability was affected by the operating mix.

What drove Kirloskar Brothers' order intake and domestic growth?

Kirloskar Brothers' consolidated order intake increased 68% year on year to ₹2,047.2 crore in Q2 FY27, supported by orders from domestic and overseas markets. The order inflow provides the company with a larger base of projects to execute in subsequent periods.

The standalone domestic business recorded revenue growth of 23% to ₹799.1 crore during the quarter. Its EBITDA rose 37% to ₹93.7 crore, while profit after tax increased 45% year on year to ₹54.4 crore. Management said it continued to see good order inflows across segments.

The domestic order book stood at ₹2,926.4 crore as of September 2026, up 29% year on year. This figure excludes the small pumps order book. Chairman and Managing Director Sanjay Kirloskar said the company remained confident of delivering double-digit FY27 revenue growth over FY26 for its standalone businesses.

Why were margins lower despite revenue growth?

Kirloskar Brothers' margin performance was moderated by a lower contribution from its services business, which traditionally earns higher margins. Management also cited commodity-cost pressure in the broader discussion of quarterly profitability.

International EBITDA was ₹23.3 crore, translating into a margin of 5.3%. The company attributed the moderation primarily to the reduced services contribution. Sanjay Kirloskar said margins were expected to improve in the second half, though the statement remains a management outlook rather than a reported result.

The difference between revenue and EBITDA growth is relevant for investors because sales expansion does not automatically translate into equivalent operating-profit growth. The company will need execution of higher-margin services work and management of input costs to support margin progression.

Which international businesses supported the quarter?

Kirloskar Brothers said international revenue grew 24% year on year in Q2 FY27, led by execution at SPP UK, SPP USA and the Dutch group. Their existing order books supported the overseas performance during the quarter.

SPP USA continued to see traction in data-centre, fire and HVAC projects, according to management. These areas contributed to the reported order and execution activity, while the lower services mix limited the international segment's profitability.

The overseas business therefore presented a mixed picture. Revenue growth and project execution remained positive, but the 5.3% international EBITDA margin showed that the composition of work mattered materially to profitability. The company has said it is focused on expanding the services business going forward.

What does the Q2 update mean for investors?

Kirloskar Brothers' Q2 FY27 update points to strong demand visibility, reflected in 68% growth in consolidated order intake and a ₹2,926.4 crore domestic order book. Strong standalone domestic revenue, EBITDA and profit growth also supported the quarter's operating performance.

At the same time, consolidated EBITDA rose 16%, slower than the 24% increase in revenue, and overseas margins remained modest. For investors, the key issue is the pace at which order inflows convert into revenue and whether the second-half mix supports the margin improvement indicated by management.

Conclusion

Kirloskar Brothers delivered a quarter of higher revenue, sharply increased order intake and strong domestic profitability in Q2 FY27. The figures show continued demand across its markets, while the lower contribution from higher-margin services work constrained consolidated and international margins.

The next material markers are execution of the consolidated order intake of ₹2,047.2 crore, developments in the domestic order book and management's stated expectation of improved margins in the second half. The company has also maintained its confidence in double-digit standalone revenue growth for FY27 over FY26.