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

• Market Cap: ₹5.38B
• Dividend Yield: N/A
• Average Volume (3M): 10.64K
• Price to Earnings (P/E): 41.9
• Beta (1Y): 1.81
• 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: ₹81.00 ▼(-19.76% 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 & services portfolio

KECL's broad product and service set—motors, generators, transformers, switchgear and engineered project solutions—creates multiple durable revenue channels. Industrial and utility customers often require integrated systems and aftermarket service, supporting repeatable project wins and recurring spare/maintenance income over cycles.

Consistent operating cash flow and FCF growth

Stable operating cash generation and improving free cash flow give the company financial flexibility to fund capex, support working capital for project deliveries, and service debt. Durable cash conversion helps absorb revenue volatility and underpins longer-term investment in product and service capabilities.

Improving shareholders' equity

Rising equity on the balance sheet reduces reliance on external financing and mitigates leverage over time. A strengthening equity base supports creditworthiness for large industrial project bids and provides a buffer to withstand cyclical downturns in capital goods demand.

Negative Factors

Declining margins and weakening operational efficiency

Sustained margin pressure indicates rising input or competitive pricing pressure and weaker cost absorption on projects. Lower gross and EBITDA margins reduce internal funds for R&D, service expansion and capex, and exacerbate sensitivity to demand shocks in capital-intensive industrial markets.

Top-line and EPS contraction

Negative revenue and sizable EPS decline point to demand or execution headwinds in key end markets. Ongoing top-line weakness limits scale benefits and hinders margin recovery, making it harder to rebuild profitability and generate consistent returns to reinvest in product and service capabilities.

Relatively high leverage / debt-to-equity risks

Elevated leverage increases fixed interest obligations and reduces financial flexibility in a cyclical machinery industry. High debt levels constrain the company's ability to pursue large project financing, absorb prolonged downturns, or invest aggressively in product upgrades without increasing refinancing risk.

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

Kirloskar Electric Co. Ltd. generates revenue through multiple key streams including the sale of electrical equipment such as AC and DC motors, alternators, and transformers. The company also earns income from providing services related to maintenance and repair of electrical systems. Significant partnerships with government and private sector projects enhance its revenue, particularly in the infrastructure and power generation sectors. Additionally, KECL benefits from long-term contracts and tenders, which provide a steady stream of income. The company's focus on research and development allows it to innovate and introduce new products, further diversifying its revenue sources.

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	5.43B	5.44B	5.57B	4.74B	3.35B	2.78B
Gross Profit	1.19B	826.60M	835.90M	1.53B	873.77M	763.61M
EBITDA	312.00M	332.00M	447.48M	585.61M	1.03B	-96.96M
Net Income	22.30M	37.40M	140.79M	310.80M	673.89M	-481.05M
Balance Sheet
Total Assets	0.00	6.01B	6.40B	6.12B	6.14B	6.27B
Cash, Cash Equivalents and Short-Term Investments	291.50M	291.50M	211.50M	246.80M	475.12M	98.78M
Total Debt	0.00	1.16B	1.26B	1.33B	1.42B	1.79B
Total Liabilities	-1.15B	4.86B	5.58B	5.21B	5.38B	5.93B
Stockholders Equity	1.15B	1.15B	823.40M	918.30M	759.77M	335.00M
Cash Flow
Free Cash Flow	0.00	84.70M	340.79M	34.40M	343.12M	274.40M
Operating Cash Flow	0.00	123.60M	365.70M	73.00M	349.64M	299.08M
Investing Cash Flow	0.00	-38.80M	-21.20M	20.70M	1.03B	55.50M
Financing Cash Flow	0.00	-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: Positive

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 91.38, above the 50-day MA of 91.98, and below the 200-day MA of 115.10, indicating a bearish trend. The MACD of -1.94 indicates Positive momentum. The RSI at 34.54 is Neutral, neither overbought nor oversold. The STOCH value of 8.43 is Positive, 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	₹88.55B	20.04	―	1.27%	15.87%	-4.28%
INDOTECH	68 Neutral	₹14.73B	16.63	―	―	34.48%	40.61%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
KIRLPNU	60 Neutral	₹73.79B	40.77	―	0.97%	6.51%	-1.61%
HIRECT	58 Neutral	₹23.34B	49.83	―	0.13%	35.05%	99.65%
LLOYDSENGG	58 Neutral	₹66.63B	33.83	―	0.43%	40.02%	26.77%
KECL	49 Neutral	₹5.38B	41.93	―	―	-11.25%	-48.96%

Kirloskar Electric Co. Ltd. Corporate Events

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.