Kirloskar Brothers Ltd. (KIRLOSBROS) AI Stock Analysis

• Market Cap: ₹122.69B
• Dividend Yield: 0.43%
• Average Volume (3M): 4.96K
• Price to Earnings (P/E): 25.7
• Beta (1Y): 1.49
• Revenue Growth: 4.16%
• EPS Growth: -0.73%
• Country: IN
• Employees: 2,599
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 15.65
• Shares Outstanding: 79,408,930
• 10 Day Avg. Volume: 1,881
• 30 Day Avg. Volume: 4,964
• PEG Ratio: 1.69
• Price to Book (P/B): 6.45
• Price to Sales (P/S): 3.00
• P/FCF Ratio: 41.73
• 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: 59 Neutral
• Price Target: ₹1,588.00 ▼(-0.66% Downside)
• Action: Reiterated Date: 11/08/25
• Date: Action: Reiterated 11/08/25

Kirloskar Brothers Ltd. demonstrates strong financial performance with robust revenue growth and profitability. However, technical analysis indicates bearish momentum, and the stock appears overvalued with a high P/E ratio and low dividend yield. These factors contribute to a moderate overall stock score.

Positive Factors

Aftermarket & Services

A significant aftermarket and services business creates recurring, higher-margin revenue from an installed base. Over 2-6 months this supports steadier cash flows, improves lifetime customer value, and cushions equipment sales cyclicality by generating predictable service and spares demand.

Conservative Balance Sheet

Very low leverage and a strong ROE signal financial resilience and efficient capital use. This durable strength preserves bidding capacity for large projects, limits refinancing risk, and gives management flexibility to invest or return capital during multi-quarter industry downturns.

Strong Cash Generation

High free cash flow conversion demonstrates ability to fund operations, capex, and services internally. Over months this reduces dependence on external financing, supports working capital for projects, and underpins stable dividend or reinvestment capacity despite revenue swings.

Negative Factors

Recent Revenue Decline

A steep recent revenue contraction suggests sensitivity to order cycles or lost large projects. Persisting declines over several quarters can erode margins, reduce spare-parts follow-on sales, and weaken operating leverage, making recovery dependent on renewed project wins.

Margin Pressure

A falling gross margin points to rising input costs or pricing pressure in competitive tenders. If structural, margin erosion reduces cash available for reinvestment and limits profitability resilience across the project lifecycle, affecting medium-term earnings stability.

Cyclicality of End Markets

Dependence on capex-driven end markets creates structural revenue volatility tied to public and private investment cycles. Over 2-6 months this can cause uneven order intake, utilization swings, and cashflow timing risk as large tenders and project schedules fluctuate.

Kirloskar Brothers Ltd. Business Overview & Revenue Model

Company Description

Kirloskar Brothers Limited provides fluid management solutions in India and internationally. The company manufactures various pumps, including utility, solid handling, process, split-case, multi-stage, sump, vertical inline and turbine, non-clog submersible, special engineered, hydro turbines and PAT, and submersible pumps; and sluice/gate, non-return/check, globe, air, ball, suction diffuser, triple duty, and butterfly valves. It also provides hydro turbines comprising PAT, PICO, Kaplan, Francis, and Pelton turbines; and hydro-pneumatic, boiler feed, and firefighting pumping systems, as well as heating, ventilation, and air conditioning systems. In addition, the company offers steel castings for various industries, such as power, mining, cement, heavy engineering application, sugar, etc.; stators, rotors, and electric motors, as well as installs SPP pumps and systems; manufactures and sells head multi-stage and rubber lined slurry pumps, and white metal lined bearings; and sells centrifugal, fire-fighting, and water and wastewater pumps. Further, it is involved in the manufacture of API, non-API, and auto-prime pumps; bare shaft and packaged pump sets; provision of solutions for HVAC, fire protection, turf irrigation, etc., as well as upgrade, repair and maintenance, and technical support services. The company serves chemical and pharma, sugar, steel, cement, coal and mining, paper, food and beverages, textile, tire, building and construction, oil and gas, power, marine and defense, irrigation, pumps retail, and water resource management markets through a network of dealers and distributors. Kirloskar Brothers Limited was founded in 1888 and is headquartered in Pune, India.

How the Company Makes Money

Kirloskar Brothers Ltd. makes money primarily by selling pumps and engineered fluid-handling systems to customers across industrial and infrastructure sectors. Revenue is generated through (1) product sales of pumping equipment (including standard pumps and customized/engineered systems for specific applications), typically sold directly to large projects/end users and through distribution channels for broader industrial demand; (2) project/business-to-business supply where the company delivers integrated pumping packages for applications such as water supply, irrigation, and industrial plants, which can include associated equipment and system integration tied to project execution; and (3) aftermarket revenue from services and spares, including maintenance, repair, refurbishment, and replacement parts for the installed base of pumps, which can provide recurring earnings beyond the initial equipment sale. Earnings are influenced by capital expenditure and infrastructure spending cycles in sectors like water and power, the size and utilization of the installed base (driving spares/service demand), and the company’s ability to win large tenders or industrial orders. Specific partnership arrangements or customer concentration details are null.

Kirloskar Brothers Ltd. Financial Statement Overview

Summary

Kirloskar Brothers Ltd. presents a strong financial profile with consistent revenue growth, solid profitability, and effective cash flow management. The company's low leverage and high return on equity reflect a stable and efficient financial structure. While the decline in gross profit margin and potential cash flow fluctuations pose challenges, the company's overall financial health remains robust.

Income Statement

Kirloskar Brothers Ltd. has demonstrated strong revenue growth with a notable increase in total revenue over the years. The company maintains healthy profit margins, with a gross profit margin of 24.48% and a net profit margin of 9.24% for the latest year. The EBIT and EBITDA margins are also robust, indicating efficient operational management. However, the decline in gross profit margin compared to previous years suggests rising costs or pricing pressures.

Balance Sheet

The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.09, indicating prudent financial leverage. The return on equity is strong at 19.84%, showcasing effective use of shareholder funds. The equity ratio of 57.10% suggests a stable capital structure. However, the decrease in stockholders' equity growth rate could be a point of concern for future expansion.

Cash Flow

The company exhibits strong cash flow management, with significant free cash flow growth. The operating cash flow to net income ratio of 0.30 and a free cash flow to net income ratio of 0.78 indicate efficient cash conversion. The substantial increase in free cash flow growth rate highlights improved cash generation capabilities. However, the volatility in free cash flow growth over the years suggests potential fluctuations in cash flow stability.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	44.32B	44.92B	40.01B	37.30B	30.58B	27.17B
Gross Profit	20.81B	22.95B	20.18B	17.76B	13.38B	12.43B
EBITDA	5.78B	5.93B	5.06B	4.10B	2.04B	2.31B
Net Income	3.92B	4.15B	3.48B	2.35B	943.36M	1.61B
Balance Sheet
Total Assets	37.78B	36.66B	33.25B	30.16B	28.77B	27.15B
Cash, Cash Equivalents and Short-Term Investments	6.23B	7.08B	5.88B	4.78B	4.16B	3.00B
Total Debt	2.19B	1.82B	1.92B	2.86B	3.96B	3.31B
Total Liabilities	15.61B	15.64B	16.01B	16.08B	16.82B	16.07B
Stockholders Equity	22.07B	20.93B	17.19B	14.04B	11.77B	11.05B
Cash Flow
Free Cash Flow	465.00M	3.23B	2.46B	1.64B	592.12M	2.41B
Operating Cash Flow	1.06B	4.13B	3.76B	2.49B	1.41B	3.17B
Investing Cash Flow	-662.00M	-2.72B	-1.89B	-29.00M	-854.23M	-1.44B
Financing Cash Flow	-438.00M	-876.18M	-1.47B	-1.55B	297.92M	-3.15B

Kirloskar Brothers Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1598.50
• 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:KIRLOSBROS, the sentiment is Negative. The current price of 1598.5 is above the 20-day moving average (MA) of 1565.15, above the 50-day MA of 1572.34, and below the 200-day MA of 1812.83, indicating a bearish trend. The MACD of -11.08 indicates Positive momentum. The RSI at 47.15 is Neutral, neither overbought nor oversold. The STOCH value of 39.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:KIRLOSBROS.

Kirloskar Brothers Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KEC	66 Neutral	₹148.71B	38.53	―	0.74%	12.21%	56.50%
IRCON	65 Neutral	₹116.72B	41.51	―	1.56%	-13.85%	-34.81%
RITES	64 Neutral	₹91.60B	28.60	―	3.24%	-5.23%	3.21%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BEML	62 Neutral	₹125.02B	-173.04	―	0.29%	-1.31%	3.61%
KIRLOSBROS	59 Neutral	₹122.69B	25.72	―	0.43%	4.16%	-0.73%

Kirloskar Brothers Ltd. Corporate Events

Kirloskar Brothers Responds to Exchange After Surge in Trading Volumes

Kirloskar Brothers Limited has seen a significant increase in trading volumes in its shares, prompting the stock exchange to seek updated information from the company to protect investor interests. In response, the company has submitted its clarification, indicating that regulators are closely monitoring activity in the stock and underscoring the emphasis on transparency and timely disclosure for market participants.

Exchange Seeks Clarification After Surge in Kirloskar Brothers Trading Volumes

Trading volumes in shares of Kirloskar Brothers Ltd. have risen significantly, prompting the stock exchange to seek updated information from the company to ensure investors have access to relevant disclosures. The bourse has formally written to the company and is awaiting its response, underscoring heightened regulatory vigilance around unusual market activity and the need to safeguard investor interests.

The exchange’s move signals that regulators are closely monitoring the stock’s sharp increase in activity and want clarity on whether any undisclosed corporate developments may be driving the surge. Until the company responds, investors may face uncertainty about the underlying reasons for the volume spike, which could affect trading sentiment and short-term volatility in the stock.

Kirloskar Brothers Faces Rs 5.29 Crore GST Demand for Chennai Operations

Kirloskar Brothers Limited has disclosed that it recently became aware of an order dated December 31, 2025, issued by the Additional Commissioner, Office of the Principal Commissioner of CGST and Central Excise, Chennai North, under the CGST, IGST and Tamil Nadu GST Acts. The order raises a tax demand of Rs 5.29 crore, along with an equivalent penalty and applicable interest, relating to business transactions of the company’s Chennai Regional Office for financial years 2018-19 to 2023-24. The company has stated that it is seeking legal advice on the order’s implications, does not presently foresee a material impact, and will determine and pursue appropriate actions while keeping the stock exchanges informed of further developments, signalling potential regulatory and financial exposure that stakeholders will closely monitor.