Kirloskar Industries Limited (KIRLOSIND) AI Stock Analysis

• Market Cap: ₹28.62B
• Dividend Yield: 0.4%
• Average Volume (3M): 368.00
• Price to Earnings (P/E): 41.0
• Beta (1Y): 1.24
• Revenue Growth: 4.87%
• EPS Growth: -13.98%
• Country: IN
• Employees: 17
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 19.36
• Shares Outstanding: 10,509,372
• 10 Day Avg. Volume: 207
• 30 Day Avg. Volume: 368
• PEG Ratio: -0.83
• Price to Book (P/B): 0.54
• Price to Sales (P/S): 0.52
• P/FCF Ratio: 38.73
• 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: 58 Neutral
• Price Target: ₹2,832.00 ▼(-9.86% Downside)
• Action: Reiterated Date: 12/03/25
• Date: Action: Reiterated 12/03/25

Kirloskar Industries Limited's overall stock score is primarily influenced by strong financial performance, with robust revenue growth and operational efficiency. However, the technical analysis indicates bearish momentum, which is a significant concern. The valuation is fair but not compelling, with a moderate P/E ratio and low dividend yield. These factors combined result in a moderate overall stock score.

Positive Factors

Sustained Revenue Growth

Five-year revenue expansion from 18.8b to 65.9b signals durable demand capture and scale in core castings and related sales. Sustained top-line growth supports long-term capacity utilization, supplier leverage and reinvestment ability, improving resilience over a 2–6 month horizon and beyond.

Improving Gross & EBITDA Margins

Material improvement in gross margins to 43.4% and a robust 12.9% EBITDA margin indicate structural operational efficiencies and pricing power in manufacturing. These margin bases enhance sustainable operating cash generation and competitive positioning versus peers over the medium term.

Strong Balance Sheet and Cash Generation

Low leverage (D/E 0.20) and a healthy equity ratio provide financial flexibility for capex, cyclicality and investment activity. Rising free cash flow and a strong operating-cash-to-net-income ratio reflect durable cash generation that supports deleveraging or strategic reinvestment over multiple quarters.

Negative Factors

Weak Net Profitability & ROE

Despite top-line and gross-margin gains, net margin and ROE compression to very low levels indicate persistent non-operating costs, tax, interest or investment write-down impacts that erode shareholder returns. Low profitability reduces retained earnings growth and limits long-term capital allocation options.

Low Free Cash Flow Conversion

A 0.6 FCF-to-net-income conversion shows earnings are not fully translating into free cash, limiting capacity to fund dividends, buybacks or organic expansion without tapping reserves. Structurally weak conversion can constrain investment and returns even if headline revenue and EBITDA stay healthy.

Concentrated, Cyclical Business Mix

Concentration in iron castings exposes earnings to commodity cycles, industrial capex swings and raw-material/energy cost volatility. Significant reliance on investment income adds variability. This structural concentration can produce sustained earnings volatility and limits diversification benefits.

Kirloskar Industries Limited Business Overview & Revenue Model

Company Description

Kirloskar Industries Limited manufactures and sells iron castings in India. The company also generates and sells wind-power electricity through seven windmills with total installed capacity of 5.6 megawatts in Maharashtra; owns lands and buildings, and apartments and offices; and invests in properties and securities. In addition, it engages in real estate activities; and manufacturing steel and seamless tubes. The company was formerly known as Kirloskar Oil Engines Limited and changed its name to Kirloskar Industries Limited in March 2010. The company was incorporated in 1978 and is based in Pune, India.

How the Company Makes Money

Kirloskar Industries Limited makes money mainly through (1) manufacturing and sale of iron products and castings and (2) income generated from its investment portfolio. In its manufacturing business, revenue is earned from supplying pig iron and grey iron castings/iron components to industrial customers, with earnings driven by sales volumes, product mix, realizations linked to iron/raw-material and energy costs, and operating efficiency. In addition, the company generates other income from its investments—typically through dividends from equity holdings (including holdings in group companies), interest income on financial assets, and gains/losses on sale or fair value changes of investments (when applicable under accounting treatment). If any specific customer-level, segment-level revenue split, or partnership details are required, they are null because they are not available in the provided prompt and cannot be verified here.

Kirloskar Industries Limited Financial Statement Overview

Summary

Kirloskar Industries Limited shows strong revenue growth and operational efficiency, with improving gross profit margins and a robust EBITDA margin. The balance sheet is solid with a healthy equity base and low leverage. However, declining net profit margins and return on equity highlight areas for profitability improvement. Effective cash generation is evident, although free cash flow relative to net income could be improved.

Income Statement

Kirloskar Industries Limited shows strong revenue growth from 2020 to 2025, increasing from 18.8 billion to 65.9 billion. The gross profit margin improved significantly, reaching 43.4% in 2025. However, the net profit margin declined to 2.3% in 2025 from 3.2% in 2024, indicating profitability challenges despite higher revenues. EBITDA margin remains robust at 12.9%, reflecting efficient operations.

Balance Sheet

The company's debt-to-equity ratio improved over the years, standing at 0.20 in 2025, indicating a strong equity base relative to debt. Return on equity decreased to 2.4% in 2025, suggesting declining profitability. The equity ratio is healthy at 54.0%, demonstrating solid financial stability.

Cash Flow

Free cash flow growth is positive, with free cash flow rising to 877.7 million in 2025 from 763.2 million in 2024. The operating cash flow to net income ratio is strong at 4.0, indicating effective cash generation relative to net earnings. However, the free cash flow to net income ratio is lower at 0.6, suggesting that not all earnings are translating into free cash flow.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	68.40B	65.98B	63.29B	64.05B	37.25B	19.93B
Gross Profit	29.53B	8.39B	16.04B	10.16B	10.24B	6.62B
EBITDA	9.07B	8.50B	9.20B	9.25B	6.95B	4.84B
Net Income	1.66B	1.49B	2.00B	2.18B	1.94B	1.64B
Balance Sheet
Total Assets	123.43B	116.51B	97.66B	75.36B	67.86B	31.96B
Cash, Cash Equivalents and Short-Term Investments	1.56B	1.62B	1.04B	1.96B	984.90M	661.90M
Total Debt	12.88B	12.76B	12.26B	9.72B	12.09B	2.93B
Total Liabilities	35.24B	34.95B	30.25B	26.10B	27.21B	9.61B
Stockholders Equity	68.78B	62.95B	49.91B	32.53B	23.29B	17.46B
Cash Flow
Free Cash Flow	570.00M	877.70M	771.30M	2.79B	-1.18B	354.30M
Operating Cash Flow	2.16B	5.97B	5.76B	7.60B	3.17B	2.56B
Investing Cash Flow	-1.20B	-5.37B	-6.00B	-3.69B	-9.31B	-1.94B
Financing Cash Flow	-886.10M	-699.10M	-45.90M	-3.97B	-556.00M	-559.20M

Kirloskar Industries Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3141.65
• 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:KIRLOSIND, the sentiment is Negative. The current price of 3141.65 is above the 20-day moving average (MA) of 2884.36, above the 50-day MA of 3022.91, and below the 200-day MA of 3629.80, indicating a bearish trend. The MACD of -87.64 indicates Positive momentum. The RSI at 36.65 is Neutral, neither overbought nor oversold. The STOCH value of 24.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:KIRLOSIND.

Kirloskar Industries Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ELECON	73 Outperform	₹85.88B	37.50	―	0.41%	20.94%	45.63%
ELGIEQUIP	66 Neutral	₹148.50B	39.31	―	0.47%	9.46%	18.97%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
KSB	62 Neutral	₹132.28B	48.57	―	0.51%	9.50%	14.52%
KIRLPNU	60 Neutral	₹68.25B	40.77	―	0.97%	6.51%	-1.61%
KIRLOSIND	58 Neutral	₹28.62B	41.02	―	0.40%	4.87%	-13.98%
KECL	49 Neutral	₹5.22B	41.93	―	―	-11.25%	-48.96%

Kirloskar Industries Limited Corporate Events

Kirloskar Industries, Ferrous Unit Report Investor Meetings and Regulatory Update

Kirloskar Industries Limited has notified the exchanges that its listed material subsidiary, Kirloskar Ferrous Industries Limited, has provided an update under SEBI’s Listing Regulations, ensuring compliance and transparency in group-level disclosures. The communication underscores the parent company’s role in relaying key regulatory intimations from its major subsidiary to stakeholders.

Kirloskar Ferrous Industries Limited separately informed that its management held one-on-one virtual meetings with institutional investors and analysts, including EMKAY Global and Bandhan Mutual Fund, to discuss the company’s operational overview. The company clarified that no unpublished price-sensitive information was shared, indicating that the interactions were confined to permitted disclosures while maintaining regulatory safeguards for all shareholders.

Kirloskar Industries Flags Subsidiary Update, Kirloskar Ferrous Schedules Investor Meetings

Kirloskar Industries Limited has notified the stock exchanges about an update concerning its listed material subsidiary, Kirloskar Ferrous Industries Limited, in line with disclosure norms. The parent company has circulated to investors the subsidiary’s latest regulatory filing, underscoring ongoing transparency and compliance with listing obligations.

Kirloskar Ferrous Industries Limited separately informed exchanges that its management will hold one-on-one virtual meetings with institutional investors, analysts, and financial institutions in early March 2026. The scheduled interactions with firms such as EMKAY Global, Bandhan Mutual Fund, and HDFC Mutual Fund are aimed at engaging the investment community and may support improved communication of the company’s performance and strategy to key stakeholders.

Kirloskar Industries’ HR Head Jagdish Purandare Relieved After Internal Group Move

Kirloskar Industries Limited has announced that Jagdish Purandare, who had earlier tendered his resignation after being offered a new role within the Kirloskar Group, has formally ceased to serve as the company’s Head – Human Resource with effect from the close of business on 31 December 2025. The company has recorded its appreciation for Purandare’s contributions, clarified that there are no material reasons for his exit beyond the internal group role change, and notified the exchanges in line with SEBI’s disclosure norms, signalling a planned and orderly transition in its senior management ranks.

Kirloskar Industries Strengthens Leadership With New HR Head and Independent Director

Kirloskar Industries Limited has announced a key management change with the appointment of Rohan Sapkal as Head of Human Resources, effective 1 January 2026, in line with regulatory disclosure requirements. The company also confirmed earlier board decisions from November 2025, including the allotment of 3,237 equity shares under its 2019 Employee Stock Appreciation Rights plan, which marginally increased its paid-up share capital, and the induction of Godrej Group HR veteran Sumit Mitra as an independent director for a five-year term, moves that collectively signal a continued focus on strengthening governance, talent leadership, and employee-linked ownership structures.

Kirloskar Industries Names Rohan Sapkal as Head of Human Resources from January 2026

Kirloskar Industries Limited has announced the appointment of Rohan Sapkal as Head of Human Resources, effective 1 January 2026, in line with disclosure requirements under SEBI’s listing regulations. The move signals a strengthening of the company’s HR leadership at a time when governance and talent management are increasingly important for listed industrial groups, and is part of a broader pattern of board- and senior-level appointments and equity-based incentives aimed at reinforcing corporate oversight and aligning employees’ interests with shareholders.

Kirloskar Industries Opens Six-Month Special Window for Legacy Physical Share Transfers

Kirloskar Industries Limited has published its fourth round of newspaper notices in Financial Express and Loksatta, informing shareholders about a special six‑month window, from 7 July 2025 to 6 January 2026, for re-lodgement of transfer requests relating to physical shares, in line with a Securities and Exchange Board of India circular. The initiative targets transfer deeds lodged before 1 April 2019 that were rejected or left unattended and clarifies that any such re-lodged transfers will now be processed only in dematerialised form, reinforcing the regulator’s broader push towards demat-only settlements and offering legacy shareholders a final opportunity to regularise their holdings, which could improve share transfer compliance and reduce operational friction for the company and its registrar.