Kirloskar Brothers Ltd. (KIRLOSBROS) AI Stock Analysis

• Market Cap: ₹124.51B
• Dividend Yield: 0.43%
• Average Volume (3M): 4.96K
• Price to Earnings (P/E): 31.8
• Beta (1Y): 1.55
• Revenue Growth: 4.16%
• EPS Growth: -0.73%
• Country: IN
• Employees: 2,599
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 8.94
• 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: ₹1,589.00 ▼(-0.59% Downside)

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

Low Financial Leverage

A debt-to-equity of 0.09 indicates very low leverage, giving the company durable financial flexibility to pursue large infrastructure contracts, weather cyclical downturns, and fund capex from operations without relying heavily on external debt, reducing refinancing risk.

Strong Return on Equity

ROE near 20% reflects efficient use of shareholder capital and lasting operational profitability. Sustained high ROE supports reinvestment and dividend policy, signals competitive positioning in fluid management markets, and underpins capital allocation discipline over time.

Robust Cash Generation

High free cash flow conversion provides a durable funding source for project-backed revenue, maintenance capex and working capital for large contracts. Consistent FCF reduces dependence on external financing and supports strategic investments and shareholder returns over the medium term.

Negative Factors

Margin Compression Risk

A noted decline in gross margin suggests rising input or commodity costs and pricing pressure. If sustained, margin compression can erode operating profitability and ROIC, limiting ability to fund R&D or bid competitively on large infrastructure projects over coming quarters.

Declining EPS

A steep negative EPS growth rate indicates material earnings deterioration year-over-year. Persistent EPS declines impair retained earnings accumulation, constrain dividend capacity and reinvestment, and may signal operational or demand issues that weaken long-term shareholder value creation.

Volatile Free Cash Flow

Although FCF is strong on average, volatility undermines predictability of funding for large, multi-year infrastructure projects and maintenance cycles. Fluctuating cash generation complicates capital planning, increases working-capital risk and may force opportunistic financing in weak periods.

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. generates revenue primarily through the sale of its core products, which include a diverse range of pumps and valves used in various applications such as water supply, irrigation, and industrial processes. The company has several key revenue streams, including product sales, service contracts, and maintenance agreements. Additionally, KIRLOSBROS engages in project-based contracts for large-scale infrastructure projects, which can significantly contribute to its earnings. The company has established strategic partnerships with various government bodies and private enterprises, enhancing its market reach and enabling it to capture significant contracts in the infrastructure and energy sectors. Furthermore, the company invests in research and development to improve product efficiency and expand its offerings, which also plays a crucial role in sustaining its revenue growth.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	44.40B	44.92B	40.01B	37.30B	30.58B	27.17B
Gross Profit	22.97B	22.95B	20.18B	17.76B	13.38B	12.43B
EBITDA	5.93B	5.93B	5.06B	4.10B	2.04B	2.31B
Net Income	4.17B	4.15B	3.48B	2.35B	943.36M	1.61B
Balance Sheet
Total Assets	0.00	36.66B	33.25B	30.16B	28.77B	27.15B
Cash, Cash Equivalents and Short-Term Investments	7.04B	7.08B	5.88B	4.78B	4.16B	3.00B
Total Debt	0.00	1.82B	1.92B	2.86B	3.96B	3.31B
Total Liabilities	-21.01B	15.64B	16.01B	16.08B	16.82B	16.07B
Stockholders Equity	21.01B	20.93B	17.19B	14.04B	11.77B	11.05B
Cash Flow
Free Cash Flow	0.00	3.23B	2.46B	1.64B	592.12M	2.41B
Operating Cash Flow	0.00	4.13B	3.76B	2.49B	1.41B	3.17B
Investing Cash Flow	0.00	-2.72B	-1.89B	-29.00M	-854.23M	-1.44B
Financing Cash Flow	0.00	-876.18M	-1.47B	-1.55B	297.92M	-3.15B

Kirloskar Brothers Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1598.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Neutral. The current price of 1598.5 is above the 20-day moving average (MA) of 1561.21, below the 50-day MA of 1607.34, and below the 200-day MA of 1844.44, indicating a neutral trend. The MACD of -33.27 indicates Negative momentum. The RSI at 50.23 is Neutral, neither overbought nor oversold. The STOCH value of 52.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:KIRLOSBROS.

Kirloskar Brothers Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IRCON	65 Neutral	₹154.15B	25.66	―	1.56%	-13.85%	-34.81%
RITES	64 Neutral	₹109.77B	26.70	―	3.24%	-5.23%	3.21%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BEML	63 Neutral	₹149.50B	50.53	―	0.29%	-1.31%	3.61%
KEC	60 Neutral	₹177.58B	26.08	―	0.74%	12.21%	56.50%
KIRLOSBROS	59 Neutral	₹124.51B	31.76	―	0.43%	4.16%	-0.73%

Kirloskar Brothers Ltd. Corporate Events

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.

Kirloskar Brothers Ltd. Receives Positive Outlook from CARE Ratings

Kirloskar Brothers Ltd. announced that CARE Ratings Limited has revised its outlook on the company’s long-term bank facilities to ‘Positive’ from ‘Stable’, while reaffirming the rating at ‘CARE AA’. The short-term rating remains at ‘CARE A1+’. This revision reflects a positive shift in the company’s financial outlook, potentially enhancing its market position and investor confidence.

Kirloskar Brothers Faces Legal Battle Over Tax Arrears

Kirloskar Brothers Limited, a company involved in a joint venture with IVRCL Ltd. and Megha Engineering & Infrastructure Ltd. for a project with the Water Resources Department of Andhra Pradesh, is facing legal challenges related to tax arrears. The company has received a demand notice for alleged tax arrears from the Andhra Pradesh GST Act, 2017, for the years 2017-18 and 2023-24. Kirloskar Brothers has filed writ petitions challenging these notices, and the Andhra Pradesh High Court has granted an interim stay on the recovery proceedings.