Kirloskar Industries Ltd Q2FY26 | ₹1,782 Cr Sales, ₹98 Cr PAT, EV/EBITDA 5.55x – Old Family Business, New Tricks, and a Legacy With More Directors Than a Bollywood Film Crew

1. At a Glance

Kirloskar Industries Ltd (KIL) – the 133-year-old industrial aristocrat of Pune – just dropped itsQ2FY26results, and it’s doing what it does best:collecting dividends from its own family. The consolidated revenue stood at₹1,782 crore, a5.6% YoY rise, while net profit came in at₹98 crore, up1.2% YoY. The company is trading around₹3,607, with amarket cap of ₹3,790 crore. ItsP/E ratio is 23.7, and despite owning more land than some states, theROEis a modest2.6%, which is basically “real estate returns if you rented to your cousin at half rent.”

With anEV/EBITDA of 5.55x, KIL looks cheap on paper but is mostly a holding company whose real muscle is its51% stake in Kirloskar Ferrous Industries (KFIL)—the subsidiary that does all the heavy lifting while KIL collects rent and dividends like an old Maharaja sipping Darjeeling.

Want to know how a company can be in iron castings, real estate, and windmills all at once – and still attend SEBI hearings for insider trading? Buckle up.

2. Introduction

Kirloskar Industries is what happens when your great-grandfather built an empire, your grandfather expanded it, and your generation… just manages it. Born in 1888 and incorporated as a company decades later, KIL is part of the larger Kirloskar family dynasty—known for engineering, pumps, and family feuds that could fuel ten seasons ofSuccession: Pune Edition.

Today, the company’s job description reads like a random LinkedIn bio:

• Manufactures iron castings through KFIL,
• Generates wind power,
• Rents out prime real estate in Pune, Delhi, and Jaipur,
• Invests in group companies,
• And occasionally deals with SEBI fines.

Despite its diversified presence, over90% of consolidated revenueflows from its ferrous subsidiary KFIL, while standalone KIL itself lives ondividend incomeandrental receipts—the corporate equivalent of living off your parent’s fixed deposits.

The stock trades at just0.55x its book value, which sounds like a steal until you realize that most of that “book value” is tied up in properties leased to its own cousins. The company hasdebt of ₹1,296 crore, acurrent ratio of 1.91, and zero pledges—probably because even SEBI knows this family’s equity is sacred ground.

3. Business Model – WTF Do They Even Do?

Trying to explain Kirloskar Industries’ business model is like trying to explain why your uncle has three companies but one GST number. Here’s the breakdown:

1. Iron Castings (92% of revenue):ThroughKirloskar Ferrous Industries Ltd (KFIL)– its 51% owned powerhouse – the group manufactures pig iron, cylinder heads, blocks, and other castings. It’s one of India’s top three pig iron producers. KFIL also acquiredIndian Seamless Metal Tubes (ISMT)in FY22, diversifying into seamless tubes—because nothing says “expansion” like buying another metal company when you already have one.

2. Wind Power Generation:The company operates windmills because, apparently, owning land wasn’t passive enough income.

3. Real Estate (Avante Spaces Ltd):Under its wholly-owned subsidiary Avante Spaces (earlierWellness Space Developers), KIL develops and licenses property. It once sold its Kothrud real estate business for ₹75 crore through a slump sale and then—plot twist—renamed the buyer as its own subsidiary. That’s not a transaction; that’s corporate yoga.

4. Investments:The company holds₹1,185 crore worth of investmentsacross the Kirloskar family ecosystem—Pneumatic, Brothers, Oil Engines, and even the odd unrelated company for “diversification.”

Essentially, Kirloskar Industries is a mini family office wrapped in an industrial shell. Its subsidiaries make the money, it collects the rent, and SEBI collects the fines.

4. Financials Overview

Commentary:The growth looks modest but steady—like your father’s fixed deposit renewal slip. With EBITDA margin at around 13%, the company’s operating efficiency has stabilized post its ISMT integration. PAT margins are thin for a company that technically controls a steel empire and half of Pune’s real estate.

5. Valuation Discussion