KIRLPNU Q3 FY26 earnings call.
A source-linked concall view: reported numbers, management language, guidance, commitments and risks that should carry forward.
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Revenue
₹403.5 Cr
verified against source
Revenue YoY
18.5%
reported change
EBITDA
Pending
latest reported figure
Source
screener in enriched
record provenance
Actual signal trajectory
Where this quarter sits.
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What the record says.
Kirloskar Pneumatic reported Q3 FY26 revenue of ₹403.5 crore, up 18.5% YoY, though below potential due to ~₹180 crore of large packages awaiting dispatch as customer sites remained unready. YTD revenue of ₹1,354 crore is essentially flat (~2% growth) versus last year. The company guided for FY26 revenue of ₹1,800-1,850 crore (10-12% growth) and PBT of ₹345-360 crore (20%+ growth), with management confident of returning to 20% CAGR growth trajectory from FY27. Order book stands at ₹1,939 crore (19% YoY growth), though composition has shifted from large packages to equipment orders, providing smoother quarterly revenue visibility. Key risks include continued oil & gas capex delay, CNG station installation degrowth, and macroeconomic uncertainty affecting project finalization. New products (Taichi, Zephros) and non-traditional orders are expected to drive FY27 growth, while the MD transition (outgoing MD K. Shashidhar to incoming Aman Kirloskar) was addressed as a structured succession.
Colored figures show movement against the previous available record.
Guidance to track
- Full year revenue expected at ₹1,800-1,850 crore, implying ~10-12% YoY growth. Management notes this is below historical 20% CAGR but expects to return to targeted growth rate from FY27.
- Profit before tax expected to grow at least 20-25% YoY to ₹345-360 crore, driven by improved product mix and manufacturing cost reduction.
- Management targets returning to 20% revenue growth and 20% EBITDA margin from FY27 onwards, supported by strong order book and new product ramp-up.
- Zephros/PLI project requires additional ₹200 crore capex (total ₹300 crore including committed capex) with commitment to deliver 5x revenue. PLI clearance expected during Q4 FY26.
Risks flagged
- Two large packages worth ~₹180 crore remained undispatched in Q3 due to customer site delays (private sector petrochemical projects), resulting in higher inventory. Management expects clearance by February but execution timing remains uncertain.
- Oil and gas sector, including petrochemicals, saw virtually no major project finalizations throughout calendar year 2025. Management notes this has created shortage of large package orders and CNG station installations are at lowest in 5 years.
- CNG station new installations declined dramatically to ~1,000 from PNGRB target of 2,500. KPCL's gas distribution business is at lowest in 3-4 years. Management has consciously reduced booster compressor exposure to preserve margins.
- New labor code effective November 21, 2025 requires estimated ₹18.3 crore gratuity provision top-up (plus ~₹1 crore for leave encashment). Management describes impact as not material but deferred clarification on exact regulatory requirements and payment timeline.
Key quotes
- The orders that we have picked up to cover up which is really giving us the hope and confidence of doing numbers next year comes from non-traditional businesses for KPCL which is why I said these are not from the compression area but parts and components of another industry which we are able to make in our manufacturing capability.
- This year we're going to be lower. We're going to be probably be 10 to 12%. We expect to come back to a 20% growth rate from the next year onwards on the top line.
- We have lived well even in a case where very little of the oil and gas sector has been spending money and we have lived through that year. We expect 26 to be definitely better than that.
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