Kirloskar Electric Q2 profit reaches Rs 5.99 crore in FY27

Kirloskar Electric Company Limited reported standalone profit after tax of Rs 5.99 crore in Q2 FY27, reversing a Rs 6 crore loss in Q1 FY27, as revenue from operations rose 58% sequentially to Rs 164.44 crore and 16% from Q2 FY26.

How did Kirloskar Electric perform in Q2 FY27?

Kirloskar Electric returned to quarterly profitability in Q2 FY27, reporting Rs 5.99 crore of profit after tax, or PAT, compared with Rs 4.53 crore in Q2 FY26. PAT increased 32% year on year, while the PAT margin rose 45 basis points to 3.6% from 3.2% a year earlier.

Revenue from operations was Rs 164.44 crore in Q2 FY27, up from Rs 142.11 crore in Q2 FY26. The company also said revenue was 58% above Q1 FY27, when it recorded the Rs 6 crore loss that Q2 reversed.

What changed in profitability from Q2 FY26?

Kirloskar Electric’s operating earnings before interest, tax, depreciation and amortisation, or operating EBITDA, excluding other income, rose 67% to Rs 10.77 crore in Q2 FY27 from Rs 6.44 crore in Q2 FY26. Reported EBITDA, which includes other income, rose 3% to Rs 12.45 crore from Rs 12.05 crore.

Reported EBITDA margin declined to 7.6% in Q2 FY27 from 8.5% in Q2 FY26, a reduction of 91 basis points. Kirloskar Electric attributed the quarter’s performance to improved execution across business units, lower finance costs and better absorption of employee costs, without quantifying the contribution of each factor.

The first-half comparison remained below the prior year despite the Q2 recovery. H1 FY27 revenue from operations was Rs 268.29 crore, down 2% from Rs 274.35 crore in H1 FY26, while operating EBITDA declined 22% to Rs 10.40 crore and reported EBITDA fell 36% to Rs 12.76 crore.

H1 FY27 PAT was nil against Rs 4.98 crore in H1 FY26, while profit before tax was Rs 0.05 crore against Rs 4.98 crore. This means the Q2 return to profit followed a first quarter that had materially reduced first-half earnings.

Which businesses drove Kirloskar Electric’s Q2 revenue?

Kirloskar Electric’s Rotating Machines business was the largest disclosed Q2 FY27 revenue contributor, with revenue increasing 24% year on year to Rs 84 crore. The company identified high-voltage machines, alternators and electric-vehicle motors as the products supporting the segment’s growth.

Power Generation and Distribution recorded Q2 FY27 revenue of Rs 67 crore, which was in line with Q2 FY26. Its flat revenue outcome contrasted with the 24% increase in Rotating Machines, although Kirloskar Electric said transformer order inflows support execution visibility in H2 FY27.

The Others segment, including spares and services, generated Rs 14 crore in Q2 FY27, up 14% year on year. The three segment figures are rounded in the release, while company-wide revenue is reported at Rs 164.44 crore, so they do not provide an exact calculation of segment mix.

Rotating Machines therefore contributed the disclosed growth momentum, while Power Generation and Distribution did not add year-on-year revenue in Q2 FY27. Kirloskar Electric did not disclose segment operating profit, segment order-book values or a monetary revenue target for H2 FY27.

What do Kirloskar Electric’s orders and funding show?

Kirloskar Electric reported Q2 FY27 order inflow of Rs 164 crore, up 9% year on year, and H1 FY27 order inflow of Rs 348 crore, up 18%. The increase in first-half orders contrasted with the 2% decline in H1 revenue from operations to Rs 268.29 crore.

Management said its H2 FY27 priorities are execution discipline, working-capital management and margin improvement. Executive Chairman Vijay R. Kirloskar said revenue had returned to its planned trajectory, and the company cited transformer orders as supporting H2 execution, but it did not provide an H2 revenue, margin or profit target.

Kirloskar Electric completed a Rs 40 crore equity infusion and received a Rs 100 crore sanction from Kotak Mahindra Bank. The company said the equity infusion strengthened net worth and liquidity, while the funding arrangements would support working capital and execution.

A separate filing states that the preferential issue raised Rs 40 crore on 23 September 2026 for working-capital utilisation, including repayment or prepayment of existing working-capital borrowings. By 30 September 2026, Rs 5 crore had been used, and the filing reported no deviation or variation in the use of funds.

What accounting and financial matters should readers note?

Kirloskar Electric’s 6 November 2026 release presents standalone Q2 and H1 FY27 results, while the accompanying independent auditor’s review covers consolidated results. The auditor noted accumulated losses, erosion of net worth after excluding the revaluation reserve and certain overdue payments to creditors.

The auditor said the going-concern basis depends on adherence to a restructuring plan, monetisation of some non-core assets and achievement of projected turnover. Based on management representations and its appraisal of the plan, the auditor concluded that no material uncertainty existed that would cast significant doubt on the company’s ability to continue as a going concern.

The auditor also drew attention to an amalgamation approved by the National Company Law Tribunal on 30 April 2026, with an appointed date of 1 April 2024. The consolidated results include the amalgamation’s effect under Indian Accounting Standard 103, Business Combinations, and comparative information was restated or recast where applicable.

Kirloskar Electric has filed a Special Leave Petition before the Supreme Court concerning a resale-tax penalty demand of Rs 5.27 crore. Management represented that an economic outflow was not probable and no provision was required, and the auditor relied on that representation without modifying its conclusion.

Conclusion

Kirloskar Electric’s Q2 FY27 outcome was a return to quarterly profit, supported by revenue of Rs 164.44 crore, a 67% increase in operating EBITDA to Rs 10.77 crore and 24% growth in Rotating Machines revenue to Rs 84 crore. However, H1 revenue, operating EBITDA and PAT remained below their H1 FY26 levels.

The next reported measures will be H2 FY27 conversion of the Rs 348 crore H1 order inflow, including transformer-related execution, and management’s progress on working capital and margin improvement. The use of the remaining preferential-issue proceeds and adherence to the restructuring plan cited in the auditor’s review also remain disclosed matters to watch.