Kirloskar Brothers Limited Q2FY26 Concall Decoded: ₹1,028 Cr revenue, zero receivables risk, but monsoon still runs the show

1. Opening Hook

Just when everyone thought the Jal Jeevan Mission cash taps were finally opened, the pipes clogged again—this time at the state level. Welcome to Q2FY26, where Kirloskar Brothers did everything right operationally, yet waited patiently for money that didn’t arrive.

Revenue didn’t collapse, margins didn’t implode, and receivables… well, they stayed at zero. In a world where working capital horror stories are common, that itself is a flex.

But don’t get too comfortable—monsoons overstayed, forex played spoilsport, and the UK decided power prices should feel like luxury handbags. Meanwhile, the US went all-in on data centers, Thailand woke up violently, and South Africa quietly delivered.

This call is less about fireworks and more about controlled confidence. Stick around—because the second half is where Kirloskar usually shows up fashionably late.

2. At a Glance

Revenue ₹1,028 Cr (flat YoY) – Stability is the new growth, apparently.
H1 Revenue down 3% YoY – Monsoon + seasonality = temporary sulking.
EBITDA ₹124 Cr, margin 12% – Product mix and forex took their cut.
Standalone order book ₹2,127 Cr (+13%) – Orders flexing, sales taking a nap.
International order book ₹1,289 Cr (+25%) – Overseas clearly got the memo.
Domestic subs PAT +26% – Side characters quietly stealing scenes.

3. Management’s Key Commentary

“Our consolidated revenue remained broadly stable year-on-year.”
(Translation: No growth, but no drama either 😏)

“We do not dispatch anything unless we are sure of the payment.”
(Translation: Zero receivables, zero tolerance.)

“Standalone performance was impacted by extended monsoon.”
(Translation: Weather still controls quarterly earnings.)

“Domestic subsidiaries grew revenue 14% and PAT 26%.”
(Translation: Kids doing well while parent waits for seasonality.)

“US and Thailand grew 21% and 158% respectively in constant currency.”
(Translation: Elections ended, orders remembered us 😎)

“UK margins impacted due to deindustrialization and power costs.”
(Translation: £280/MWh power prices kill vibes.)

“We see strong visibility in H2.”
(Translation: Trust the Kirloskar second-half tradition.)

4. Numbers Decoded

Metric	Q2FY26	YoY Insight
Revenue	₹1,028 Cr	Flat, but resilient
EBITDA	₹124 Cr	Margins hit by mix + FX
EBITDA Margin	12%	Below comfort zone
Standalone OB	₹2,127 Cr	+13%, execution pending
Intl OB	₹1,289 Cr	+25%, real momentum
FX Loss	~₹20 Cr	GBP pain, accounting reality

Bottom line: Business is fine. Accounting optics not so much.

5. Analyst Questions (Decoded)

JJM receivables risk?
Zero exposure. Dispatches blocked till cash certainty. (Distributor health > growth.)
PetroRetail pumps strategy?
Tender-driven, L1 obsession, two American

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