Kirloskar Electric Q2 profit returns as revenue rises 16%

Kirloskar Electric Company Limited returned to a Rs 5.99 crore standalone profit in Q2 FY27 ended September 30, 2026, as revenue rose 16% year on year to Rs 164.44 crore. Operating EBITDA excluding other income increased 67% to Rs 10.77 crore, following a Rs 6 crore loss in Q1 FY27.

How did Kirloskar Electric perform in Q2 FY27?

Kirloskar Electric reported profit after tax, or PAT, of Rs 5.99 crore for Q2 FY27, compared with Rs 4.53 crore in Q2 FY26, a 32% increase. Revenue from operations rose to Rs 164.44 crore from Rs 142.11 crore, while profit before tax increased to Rs 6 crore from Rs 4.53 crore. PAT margin increased by 45 basis points to 3.6% from 3.2%; 100 basis points equal one percentage point.

The second-quarter result also marked a sequential change from Q1 FY27. Revenue was 58% higher than in the preceding quarter, while Q2 PAT of Rs 5.99 crore followed a Rs 6 crore loss in Q1 FY27. Kirloskar Electric attributed the quarterly performance to improved execution across business units, lower finance costs and better absorption of employee costs.

What changed in Kirloskar Electric's operating profitability?

Kirloskar Electric's operating earnings before interest, tax, depreciation and amortisation, or EBITDA, excluding other income rose to Rs 10.77 crore in Q2 FY27 from Rs 6.44 crore a year earlier. The 67% increase in this measure exceeded the 16% growth in revenue. Reported EBITDA, which includes other income, increased 3% to Rs 12.45 crore from Rs 12.05 crore.

Reported EBITDA margin was 7.6% in Q2 FY27, down 91 basis points from 8.5% in Q2 FY26. The different growth rates between reported EBITDA and operating EBITDA reflect Kirloskar Electric's separate presentation of EBITDA including other income and the operating measure excluding it. The release does not disclose the value or components of other income for either quarter.

Which Kirloskar Electric businesses contributed to Q2 revenue growth?

Kirloskar Electric's Rotating Machines revenue grew 24% year on year to Rs 84 crore in Q2 FY27. The company said high-voltage machines, alternators and electric-vehicle motors led this increase. The business update does not provide a prior-year revenue figure for the segment or disclose its Q2 margin.

Power Generation and Distribution revenue was Rs 67 crore in Q2 FY27, in line with Q2 FY26, while the Others segment increased 14% to Rs 14 crore. Others includes spares and services. The three segment figures total Rs 165 crore because the business update uses rounded amounts, compared with precisely reported revenue from operations of Rs 164.44 crore.

Kirloskar Electric reported Q2 FY27 order inflow of Rs 164 crore, up 9% year on year. It said healthy transformer order inflow in Power Generation and Distribution supports execution visibility into the second half of FY27. This is the company's stated view on execution visibility, rather than a quantified revenue or profit target for the second half.

Why did Kirloskar Electric's first-half results lag last year?

Kirloskar Electric's H1 FY27 revenue from operations was Rs 268.29 crore, down 2% from Rs 274.35 crore in H1 FY26, despite the Q2 revenue increase. Reported EBITDA fell 36% to Rs 12.76 crore from Rs 19.92 crore. Its reported EBITDA margin declined to 4.8% from 7.3%, a reduction of 250 basis points.

Operating EBITDA for H1 FY27 was Rs 10.40 crore, down 22% from Rs 13.35 crore in H1 FY26. Profit before tax was Rs 5 lakh, compared with Rs 4.98 crore a year earlier, while PAT was Rs 0 against Rs 4.98 crore. The Q2 PAT of Rs 5.99 crore therefore did not fully offset the Rs 6 crore Q1 loss across the six-month period.

H1 FY27 order inflow moved in the other direction, rising 18% year on year to Rs 348 crore. The Q2 order inflow of Rs 164 crore represented one quarter of that six-month total and was up 9% year on year. Kirloskar Electric did not disclose an opening or closing order-book value, so the amount of order inflow available for future revenue conversion cannot be calculated from the release.

What funding and rating changes did Kirloskar Electric disclose?

Kirloskar Electric completed an Rs 40 crore equity infusion, which it said strengthened net worth and liquidity. It also received an Rs 100 crore sanction from Kotak Mahindra Bank. The release does not state the amount drawn, interest cost, repayment terms or planned utilisation of the bank sanction.

On October 22, 2026, CRISIL upgraded Kirloskar Electric's long-term rating by two notches to CRISIL BB/Stable from CRISIL B+/Stable. Executive Chairman Vijay R. Kirloskar said the rating upgrade and equity infusion provided a stronger balance sheet to support working capital and second-half execution. He said management's focus remained on execution discipline, working-capital management and margin improvement.

Kirloskar Electric operates five manufacturing plants at Mysuru, Tumakuru, Govanahalli, Pune and Hubballi, along with 14 domestic branch offices and international offices in Singapore and the United Arab Emirates. Its products include motors, alternators, generators, transformers and diesel-generator sets, serving power, industrial, infrastructure and mobility sectors. These operations include the Q2 FY27 Rotating Machines revenue of Rs 84 crore and Power Generation and Distribution revenue of Rs 67 crore.

Conclusion

Kirloskar Electric's Q2 FY27 return to profit was supported by 16% revenue growth, a 67% rise in operating EBITDA and PAT of Rs 5.99 crore after the Q1 loss. The half-year comparison remained behind H1 FY26, however, with revenue down 2%, reported EBITDA down 36% and PAT at Rs 0.

The next disclosed development to watch is whether H1 order inflow of Rs 348 crore, including transformer orders cited by the company, supports second-half execution. Management has identified execution discipline, working-capital management and margin improvement as priorities, while the Rs 40 crore equity infusion and Rs 100 crore bank sanction are intended to support operations.