KSB Q2 FY27 Results Analysis: Revenue Jumps 19%, PAT Falls 10%

Cofacto Research Published November 03, 2026 3 min read
Negative

KSB Ltd's Q2 FY27 numbers came in soft, with revenue of Rs. 772.70 Cr (+18.96% YoY) and PAT growth of -10.22% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quick Details
Results dateNovember 03, 2026
Revenue (Q2)Rs. 772.70 Cr (+18.96% YoY)
PAT (Q2)Rs. 60.60 Cr (-10.22% YoY)
EBITDA margin10.58% (-298 bps YoY)
EPS (Q2)Rs. 3.48 (-10.31% YoY)

Quarter Snapshot

Revenue grew 18.96% YoY, exceeding management's 15% value growth guidance, but EBITDA margin of 10.58% missed the 13-14% target by 242-342 bps and PAT fell 10.22%. The Valves segment margin collapse to 2.85% (vs 12.55% YoY) contradicts management's recovery guidance, while large order wins (ONGC Rs.850 Mn, Dangote Rs.1,180 Mn) and the completed Shirwal expansion offer forward support.

Management Guidance vs Delivery

What management saidWhereWhat happenedVerdict
Top-line growth: 10-15% volume, ~15% valueMgmt guidance, Aug 2026Q2 YoY +18.96% (value) — ahead of guidanceExceeding
EBITDA margin: 13-14%Mgmt guidance (open-ended)Q2: 10.58% — 242-342 bps gapBehind
Double-digit top-line (full year, contingent on NPCIL)Mgmt KPI, Aug 20269M: +8.00% YoY — needs accelerationAt risk
Valve margins: return to double digitsMgmt guidance (open-ended)Q2: 2.85% — single-digit, compressed furtherSignificantly behind
"Consistent business momentum and positive revenue growth... despite margin pressures"Aug 2026 press releaseRevenue +18.96% YoY; EBITDA margin down 298 bps — revenue momentum visible, margin pressure confirmedPartially confirmed
"Valve margins temporary variations... will return to double digits"H1 FY27 briefingQ2 Valves margin 2.85% (vs 4.07% H1) — margins deteriorated further, not recoveringContradicted
"Second half should be much better" for engineered/project pump order intakeMgmt, H1 briefingQ2 Pumps segment margin 10.57% (vs implied 13.26% YoY) — margin still compressedNot yet visible
"Operating efficiency and cost discipline" focusAug 2026 press releaseEmployee costs +7.12% vs revenue +18.96% — operating leverage present — employee cost control visibleConfirmed
"Export recovery in H2 2026"Mgmt, H1 briefingDangote order Rs.1,180 Mn (Sep 2026), ONGC Rs.850 Mn (Oct 2026) — large export orders announcedOn track
"We wouldn't see EBITDA margins of 15%, 16%... aiming for 13-14%"Mgmt, Aug 2026Q2 EBITDA margin 10.58% — even the lower target not metBelow guidance

Key Numbers, Quarter by Quarter

MetricQ-2 ago (Q4 FY26)Q-1 ago (Q1 FY27)Current Q (Q2 FY27)Trend
Order book (Mn)25,848 (Dec 2025)27,445 (Jun 2026)Not disclosedGrowing (per notes)
Solar order book shareNot quantified5-7% (H1)Not disclosedStable below target
SupremeServ revenue share~15% (Mar 2026)~15% (H1)Not disclosedStable
Valves segment margin13-14% (historical)4.07% (H1 FY27)2.85% (Q2 FY27)Deteriorating

Key Investment Insights

Key Positives

  • Revenue grew 18.96% YoY to 7,727 Mn, exceeding management's 15% value growth guidance
  • Pumps segment revenue grew 23.53% YoY to 6,584 Mn
  • Employee benefits expense grew only 7.12% vs revenue growth of 18.96%, showing operating leverage on labor costs
  • Share of associate profit (KSB MIL Controls) increased 45.45% YoY to 48 Mn
  • Recent order wins of Rs.2,030 Mn: ONGC Rs.850 Mn (Oct 2026) and Dangote Rs.1,180 Mn (Sep 2026)
  • Shirwal facility expansion (~20% capacity addition, Rs.400 Mn investment) inaugurated Aug 6, 2026

Risk Factors

  • EBITDA margin of 10.58% compressed 298 bps YoY and sits 242-342 bps below management's 13-14% guidance
  • Valves segment EBIT collapsed 77.70% YoY to 33 Mn with margin at 2.85% vs 12.55% prior year, contradicting management's 'return to double digits' guidance
  • Consolidated PAT declined 10.22% YoY to 606 Mn despite 18.96% revenue growth
  • Total expenses grew 22.02% YoY, outpacing revenue growth of 18.96%
  • Inventory build-up of +93 Mn in Q2 vs drawdown of −453 Mn in Q1, tied to export orders awaiting clearance
  • 9M revenue growth of 8.00% YoY puts the double-digit full-year growth target at risk
Share on X · LinkedIn · WhatsApp

Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.

Powered by Cofacto — AI research platform for Indian stocks, every claim cited from primary filings

Login Now