KIRLOSBROS's Q2 FY27 numbers came in strong, with revenue of Rs. 1,276.70 Cr (+24.22% YoY) and PAT growth of +3.46% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details| Results date | October 27, 2026 |
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| Quarter | Q2 FY 2026-2027 |
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| Revenue (Q2) | Rs. 1,276.70 Cr (+24.22% YoY) |
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| PAT (Q2) | Rs. 74.70 Cr (+3.46% YoY) |
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| EBITDA margin | 9.73% (-82 bps YoY) |
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| Market cap | Rs. 12,323.05 Cr |
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| CMP | Rs. 1,551.40 |
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Quarter Snapshot
Q2 FY27 revenue growth accelerated to 24.2% YoY with standalone PAT up 44.7%, keeping the company comfortably ahead of its double-digit FY27 revenue guidance. However, EBITDA margin compressed 82 bps YoY to 9.73% on 38.6% material cost inflation, and H1 CFO turned negative at Rs.(580) Mn on continued inventory buildup that contradicted management's Q2 improvement commitment. Revenue delivery is on track, but margin recovery and cash conversion are the key swing factors for the stock.
Key Investment Insights
Key Positives
- Consolidated revenue grew 24.2% YoY to Rs.1,276.70 Cr, accelerating from 12.9% YoY in Q1 FY27
- Standalone PAT grew 44.7% YoY to Rs.544 Mn, outpacing standalone revenue growth of 22.9%
- International revenue grew 25.4% YoY to Rs.4,633 Mn, faster than domestic growth of 23.6%
- Order book of Rs.4,062.20 Cr (June 2026) provides H2 FY27 revenue visibility; only ~4% H2 YoY growth needed to meet FY27 double-digit guidance
- Standalone company is quasi debt-free with debt/equity of 0.01x; consolidated debt/equity at 0.08x
- Employee costs grew 12.9% YoY, slower than revenue growth of 24.2%, showing operating leverage on that line
Risk Factors
- EBITDA margin compressed 82 bps YoY to 9.73% as material costs grew 38.6% YoY vs revenue growth of 24.2%
- H1 FY27 consolidated CFO was negative Rs.(580) Mn vs positive Rs.1,056 Mn in H1 FY26; standalone CFO/PAT at -92.8%
- Inventory rose to Rs.10,283 Mn from Rs.8,724 Mn in March 2026, contradicting management's Q2 improvement commitment
- Finance costs jumped 50.8% YoY to Rs.98 Mn consolidated
- Family settlement arbitration (Supreme Court, Aug 11, 2026) has financial impact that cannot be presently ascertained
- Consolidated PAT growth of 3.5% YoY lagged revenue growth of 24.2% due to margin pressure