Kirloskar Industries revenue climbs 17%, profit rises 4%

Kirloskar Industries Limited reported consolidated revenue from operations of Rs 2,075.02 crore for the quarter ended September 30, 2026, up 17% from Rs 1,781.94 crore a year earlier, while profit after tax increased 4% to Rs 104.60 crore. Higher industrial revenue lifted income, although expenses and tax rose as well.

How did Kirloskar Industries perform in the September quarter?

Kirloskar Industries increased revenue from operations by Rs 293.08 crore year on year to Rs 2,075.02 crore in the quarter ended September 30, 2026. Revenue from the sale of products and services rose to Rs 2,048.02 crore from Rs 1,756.61 crore, while total income, including Rs 22.68 crore of other income, reached Rs 2,097.70 crore against Rs 1,790.06 crore.

Profit after tax rose by Rs 3.87 crore to Rs 104.60 crore from Rs 100.73 crore in the September 2025 quarter. Profit before tax from continuing operations increased to Rs 158.47 crore from Rs 144.80 crore. The Board approved the unaudited consolidated results on November 6, 2026, and the statutory auditors issued a limited-review conclusion rather than an audit opinion.

Why did Kirloskar Industries’ profit grow more slowly than revenue?

Kirloskar Industries reported an Rs 290.23 crore increase in total expenses, which was close to the Rs 307.64 crore rise in total income. Material consumption increased to Rs 1,159.77 crore from Rs 1,014.07 crore, other expenses rose to Rs 538.55 crore from Rs 479.70 crore, and employee-benefit expense increased to Rs 114.22 crore from Rs 99.60 crore.

Tax expense for continuing operations rose to Rs 53.51 crore from Rs 44.73 crore. Finance costs increased to Rs 34.21 crore from Rs 32.80 crore, while depreciation and amortisation expense rose to Rs 71.68 crore from Rs 67.70 crore. These reported cost and tax movements meant the Rs 293.08 crore gain in operating revenue translated into a Rs 3.87 crore increase in total profit after tax.

The sequential comparison was more favourable, with revenue from operations rising from Rs 1,779.15 crore in the June 2026 quarter and profit after tax increasing from Rs 78.75 crore. The June-quarter result included a Rs 29.33 crore exceptional expense for stamp duty and associated costs relating to the merger of ISMT Limited into Kirloskar Ferrous Industries Limited.

Which Kirloskar Industries segments drove quarterly earnings?

Kirloskar Industries’ iron-casting segment produced the largest reported industrial increase in profit before interest and tax. Segment revenue rose to Rs 1,308.42 crore from Rs 1,087.75 crore, while segment profit before interest and tax increased to Rs 124.28 crore from Rs 76.45 crore. The iron-casting, tube and steel segments represent the consolidated results of subsidiary Kirloskar Ferrous Industries Limited.

Steel segment revenue increased to Rs 495.77 crore from Rs 476.89 crore, and its segment profit before interest and tax rose to Rs 30.48 crore from Rs 8.97 crore. Tube revenue was Rs 629.53 crore, compared with Rs 621.87 crore, but tube segment profit before interest and tax fell to Rs 13.83 crore from Rs 67.74 crore, showing a different earnings outcome from iron casting and steel.

The investments, securities and properties segment reported revenue of Rs 61.32 crore against Rs 54.82 crore, while its segment profit before interest and tax was Rs 23.10 crore against Rs 23.39 crore. Real-estate revenue was Rs 2.37 crore and its segment loss before interest and tax was Rs 3.41 crore. Total segment revenue of Rs 2,516.79 crore was reduced by Rs 419.09 crore of inter-segment revenue before reported income.

What changed in Kirloskar Industries’ half-year results and financial position?

Kirloskar Industries’ revenue from operations for the half year ended September 30, 2026 rose to Rs 3,854.17 crore from Rs 3,487.40 crore a year earlier, but profit after tax fell to Rs 183.35 crore from Rs 339.07 crore. Profit before tax from continuing operations declined to Rs 263.44 crore from Rs 277.37 crore, reflecting a Rs 29.33 crore exceptional expense in the current half compared with Rs 6.25 crore of exceptional income in the earlier half.

The tax comparison also changed materially, with a tax expense of Rs 79.28 crore for continuing operations in the current half versus a tax credit of Rs 60.92 crore a year earlier. Kirloskar Industries said the comparative FY 2025-26 quarters were updated following the merger of Oliver Engineering Private Limited and Adicca Energy Solutions Private Limited with Kirloskar Ferrous Industries Limited. The subsidiary recognised a deferred-tax asset on the scheme’s appointed date of April 1, 2025, which was utilised across prior quarters and the current period.

Total assets were Rs 14,160.72 crore at September 30, 2026, compared with Rs 11,690.24 crore at March 31, 2026. Investments increased to Rs 6,231.98 crore from Rs 4,398.60 crore, while borrowings rose to Rs 1,431.82 crore from Rs 1,105.03 crore. Cash and cash equivalents declined to Rs 66.77 crore from Rs 97.42 crore.

What do Kirloskar Industries’ cash flow and comprehensive income show?

Kirloskar Industries generated Rs 107.94 crore of cash from operations in the first half before Rs 54.08 crore of income-tax payments, resulting in Rs 53.86 crore of cash flow before exceptional items. Working-capital changes used Rs 336.83 crore, including a Rs 300.15 crore increase in trade receivables and a Rs 52.66 crore increase in inventories.

Investing activities used Rs 303.74 crore during the half year, including Rs 273.83 crore spent on property, plant and equipment and capital work in progress, plus Rs 74.36 crore for real-estate projects under development. Financing activities generated Rs 219.23 crore, supported by Rs 275.62 crore of net long-term borrowing proceeds and Rs 49.85 crore of short-term borrowing proceeds.

Total comprehensive income was a loss of Rs 735.01 crore in the September quarter despite the Rs 104.60 crore profit after tax. Other comprehensive income was a Rs 839.61 crore loss, including a Rs 963.10 crore loss on the fair valuation of quoted equity investments, partly offset by a Rs 142.52 crore related income-tax reversal.

Conclusion

Kirloskar Industries delivered a 17% increase in September-quarter operating revenue, led by higher iron-casting revenue and earnings, but profit after tax increased only 4% as material, employee, finance and other costs, along with tax expense, rose. The half-year comparison was additionally affected by exceptional items and deferred-tax accounting linked to merger-related restatements.

Investors can watch for changes in tube segment profitability, which fell to Rs 13.83 crore in the quarter despite revenue of Rs 629.53 crore, and for updates on assets classified as held for sale. These include Rs 3.16 crore of windpower-generation assets and Rs 23.40 crore of property, plant and equipment at Cello Platina as of September 30, 2026.