Kirloskar Electric Co. Ltd. (KECL) AI Stock Analysis

• Market Cap: ₹5.51B
• Dividend Yield: N/A
• Average Volume (3M): 10.64K
• Price to Earnings (P/E): 41.9
• Beta (1Y): 1.85
• Revenue Growth: -11.25%
• EPS Growth: -48.96%
• Country: IN
• Employees: 889
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.62
• Shares Outstanding: 66,414,070
• 10 Day Avg. Volume: 8,746
• 30 Day Avg. Volume: 10,642
• PEG Ratio: -3.06
• Price to Book (P/B): 7.21
• Price to Sales (P/S): 1.52
• P/FCF Ratio: 97.62
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: ₹83.00 ▼(-17.78% Downside)
• Action: Reiterated Date: 11/25/25
• Date: Action: Reiterated 11/25/25

Kirloskar Electric Co. Ltd. receives a low overall score due to several factors. The most significant is the bearish technical analysis, indicating strong downward momentum. The high P/E ratio suggests overvaluation, further impacting the score negatively. Financial performance is mixed, with leverage concerns and fluctuating profitability, contributing to the overall cautious outlook.

Positive Factors

Diversified product portfolio

KECL's broad product set across motors, generators, transformers, switchgear and engineered solutions supports durable demand across power, transmission and industrial electrification end-markets. This diversity reduces single-market exposure and enables cross-selling and integrated project wins over time.

Stable cash flow and growing FCF

Consistent operating cash flow and reported free cash flow growth provide financial flexibility to fund maintenance capex, service debt and support working capital needs. Stable cash generation is a durable foundation for operational continuity and gives management room to invest selectively.

Improving shareholders' equity

An improving equity base strengthens the balance sheet, reduces net leverage metrics over time and enhances resilience to cyclical shocks. Stronger equity can improve credit access and supports longer-term investments without excessive reliance on short-term borrowing.

Negative Factors

Declining revenue trend

Recent revenue weakness signals potential demand softness or lost share in key segments; sustained top-line declines reduce scale benefits, constrain margin recovery and limit the firm's ability to invest in product development or pricing initiatives, harming medium-term competitiveness.

High leverage risk

A relatively high debt-to-equity ratio increases interest burdens and reduces financial flexibility. Elevated leverage makes the company more vulnerable to demand shocks or rising rates, limiting capacity for strategic capex and increasing refinancing risk over the medium term.

Margin compression and operational pressure

Declining gross and operating margins point to cost pressures, pricing erosion or mix shifts that weaken profitability sustainability. If margins remain compressed, free cash generation and reinvestment capacity will be impaired, straining long-term competitiveness and returns.

Kirloskar Electric Co. Ltd. Business Overview & Revenue Model

Company Description

Kirloskar Electric Company Limited manufactures and sells electrical and electronic equipment in India and internationally. The company operates through Power Generation and Distribution Group, Rotating Machines Group, and Others segments. Its products include AC high and low voltage motors; AC generators; DC motors; DG sets; electronics, such as AC and DC drives, battery chargers, and uninterruptible power supply systems; and switchgears, including vacuum circuit breakers, SF6 circuit breaker, unitized package substations, panels, and porcelain clad vacuum circuit breakers. The company also provides traction products, such as dynamic breaking resistors, AC and DC traction motors, traction alternators, and radiator cooling fans; and cast resin, distribution, power, energy, and special transformers. In addition, it designs, manufactures, and supplies custom-built systems for various projects. The company serves the power generation, transmission, and distribution, as well as transportation, sugar, cement, renewable energy, steel, agriculture, oil and gas, refinery, and nuclear industries. Kirloskar Electric Company Limited was incorporated in 1946 and is based in Bengaluru, India.

How the Company Makes Money

KECL primarily makes money by designing, manufacturing, and selling electrical equipment and engineered electrical solutions to industrial customers and power-sector/utility clients. Key revenue streams include (1) product sales—such as electric motors, generators/alternators, transformers, and switchgear/control panels—sold either as standard catalog items or as project-specific configurations; (2) project/solution revenue from supplying integrated electrical packages (equipment plus engineering, assembly, testing, and commissioning) for power and industrial installations; and (3) services and spares, including repair/overhaul, maintenance, and replacement parts for installed equipment. Information on any specific major partnerships, customer concentration, pricing terms, or segment-level revenue breakdowns is null.

Kirloskar Electric Co. Ltd. Financial Statement Overview

Summary

Kirloskar Electric Co. Ltd. shows a mixed financial profile. The income statement indicates volatility in profitability, with declining margins. The balance sheet reveals leverage risks despite improving equity. Cash flows are stable but show underlying fluctuations, suggesting areas for improvement in cash management and operational efficiency.

Income Statement

The company's revenue has shown a mixed growth pattern, with a significant drop in the recent period. Gross profit margin has been declining, indicating pressure on cost management. Net profit margin also reflects volatility, while EBIT and EBITDA margins have weakened, suggesting challenges in operational efficiency.

Balance Sheet

The balance sheet indicates a relatively high debt-to-equity ratio, pointing to potential leverage risks. However, stockholders' equity has been improving, which is positive. The equity ratio is moderate, reflecting a balance between debt and equity financing. ROE shows inconsistency, highlighting fluctuating profitability.

Cash Flow

Cash flow management appears stable with consistent operating cash flow relative to net income. Free cash flow has shown growth, providing some financial flexibility. However, fluctuations in investing and financing cash flows suggest potential volatility in cash management strategies.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	5.23B	5.44B	5.57B	4.74B	3.35B	2.78B
Gross Profit	1.42B	826.60M	835.90M	1.53B	873.77M	763.61M
EBITDA	365.10M	332.00M	447.48M	585.61M	1.03B	-96.96M
Net Income	71.20M	37.40M	140.79M	310.80M	673.89M	-481.05M
Balance Sheet
Total Assets	6.09B	6.01B	6.40B	6.12B	6.14B	6.27B
Cash, Cash Equivalents and Short-Term Investments	229.90M	291.50M	211.50M	246.80M	475.12M	98.78M
Total Debt	1.04B	1.16B	1.26B	1.33B	1.42B	1.79B
Total Liabilities	4.84B	4.86B	5.58B	5.21B	5.38B	5.93B
Stockholders Equity	1.25B	1.15B	823.40M	918.30M	759.77M	335.00M
Cash Flow
Free Cash Flow	59.50M	84.70M	340.79M	34.40M	343.12M	274.40M
Operating Cash Flow	65.50M	123.60M	365.70M	73.00M	349.64M	299.08M
Investing Cash Flow	95.60M	-38.80M	-21.20M	20.70M	1.03B	55.50M
Financing Cash Flow	-232.70M	-103.80M	-306.47M	-333.00M	-1.09B	-339.71M

Kirloskar Electric Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 100.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:KECL, the sentiment is Negative. The current price of 100.95 is above the 20-day moving average (MA) of 89.88, above the 50-day MA of 90.57, and below the 200-day MA of 114.08, indicating a bearish trend. The MACD of -2.64 indicates Positive momentum. The RSI at 40.23 is Neutral, neither overbought nor oversold. The STOCH value of 27.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:KECL.

Kirloskar Electric Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VOLTAMP	73 Outperform	₹88.31B	20.04	―	1.27%	15.87%	-4.28%
INDOTECH	68 Neutral	₹14.60B	16.63	―	―	34.48%	40.61%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
KIRLPNU	60 Neutral	₹72.73B	40.77	―	0.97%	6.51%	-1.61%
HIRECT	58 Neutral	₹25.86B	49.83	―	0.13%	35.05%	99.65%
LLOYDSENGG	58 Neutral	₹64.74B	33.83	―	0.43%	40.02%	26.77%
KECL	49 Neutral	₹5.51B	41.93	―	―	-11.25%	-48.96%

Kirloskar Electric Co. Ltd. Corporate Events

Kirloskar Electric Publishes Postal Ballot and E-Voting Notice for Shareholders

Kirloskar Electric Company Ltd., a Bengaluru-based electrical equipment manufacturer serving power and industrial sectors, continues to engage with a wide investor and customer base through formal market disclosures. Its shares are listed on both BSE and NSE under the symbol KECL, reflecting its status as a publicly traded company subject to SEBI’s listing and disclosure regulations.

The company has announced that it has published a public notice of a postal ballot and remote e-voting process in widely circulated newspapers Business Standard and Prajavani, in compliance with SEBI disclosure norms. Details of the postal ballot and e-voting have also been made available on the company’s website, underscoring its focus on transparency, shareholder participation in corporate decisions, and adherence to regulatory requirements that can influence governance and investor confidence.

Kirloskar Electric Files SEBI Demat Compliance Certificate for December Quarter

Kirloskar Electric Company Limited has submitted a confirmation certificate to the stock exchanges for the quarter ended 31 December 2025 under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018. Its registrar and share transfer agent, Integrated Registry Management Services, confirmed that all securities received for dematerialisation during the quarter were duly processed, either accepted or rejected, appropriately recorded with the depositories, listed on the relevant stock exchanges, and that corresponding physical certificates were mutilated, cancelled, and replaced with the depositories’ names in the register of members within the stipulated 15-day timeframe, underscoring ongoing compliance with securities handling and dematerialisation norms.