Kilburn Engg. — Q1 FY26 earnings call

Call held 8 Aug 2025

Management summary

Kilburn Engineering Ltd. reported a strong Q1 FY26, driven by robust operational and financial performance, including the first full period consolidation of Monga Strayfield. The company achieved significant year-on-year growth in both revenue and EBITDA, supported by a healthy order backlog and a substantial enquiry pipeline. Strategic capacity expansion and diversification into new sectors like nuclear energy are underway, positioning Kilburn for continued growth towards its FY28 revenue target of ₹1,000 crores.

Highlights

  • Consolidated top line reached ₹129.25 crores, with an EBITDA margin of 25.77%.

  • Standalone top line stood at ₹94.67 crores, achieving an operating EBITDA of 25.49%.

  • The company reported a year-on-year growth of 48% in both top line and EBITDA.

  • Order backlog at the end of Q1 FY26 was ₹447 crores, with an additional ₹98 crores in new orders received since July 1st.

  • The enquiry pipeline at a consolidated level is robust, exceeding ₹4,000 crores.

  • Management reiterated a target of 50% revenue growth for the current financial year.

  • A brownfield expansion of the Saravali unit was approved, entailing a CapEx of ₹30 crores, expected by March 2026.

  • The company aims to achieve a ₹1,000 crore top line by FY28.

Key financials

2 periods

Headline

  • Consolidated Top Line
    ₹129.25 Cr
    YoY +48%
  • Consolidated EBITDA Margin
    25.8%
  • Standalone Top Line
    ₹94.67 Cr
    YoY +48%
  • Standalone Operating EBITDA
    25.5%
  • New Orders (since July 1st)
    ₹98 Cr

Q1 end

  • Order Backlog
    ₹447 Cr

What they filed

Q1 FY27: revenue down 9.3%, net profit down 38.1% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue104 108 127 129 154 +48%157 +45%189 +49%117 −9%
EBITDA23 23 36 33 40 +74%36 +57%38 +6%21 −36%
Net profit15 15 20 21 27 +80%23 +53%25 +25%13 −38%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Order book

high confidence

Total value

₹447 Cr

as of 2025-06-30 quantified

Inflow this quarter

₹65 Cr

Execution

Execution cycle is between 4 months to 12 months, depending on project type.

Composition

  • Export (geography) 25%

Pipeline

qualified rfp

Enquiry pipeline at consolidated level

Cancellations & deferrals

  • deferred: An order delayed in March is still on hold, awaiting customer's response.
Management is confident in converting the strong enquiry pipeline into orders, maintaining a conversion factor between 20% to 25%.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹30 Cr New plan — brownfield expansion of existing unit at Saravali
    • Brownfield expansion of Saravali unit to add 5000 sq. meters of working area ₹30 Cr
    • Potential phase two CapEx at M.E. Energy ₹7 Cr
    We are also pleased to inform you that the board has in principle approved the brownfield expansion of our existing unit at Saravali, which entails a CapEx of around 30 crores with a timeline of March 2026 approximately.
  • Liquidity Liquidity disclosed The company expects good cash flows and has seen conversion of warrants, ensuring no hindrance from a cash flow perspective for operations.
    Presently, our dispatches to basically to thai carbon and all being effected, we are expecting good cash flows as well as there has been a conversion of warrants also which were issued maybe 18 months back. So, this has brought cash into the company which is fully utilized for the operations of the company. So, we don't see any hinderance from cash flow point of view in the operations of the company.

Guidance & targets

Revenue

  • Revenue Growth Revenue · current financial year · High confidence 50%
    we continue to maintain the target of 50% growth in revenue over the last year, which was stated in the last call as well.

    — Mr. Ranjit Lala

  • FY26 Revenue Revenue · FY26 · High confidence 650-700 crores
    Yes, as I mentioned, we are looking at a 50% growth of our revenue of last year. So, that would be in the range of 650 crores.

    — Mr. Ranjit Lala

  • FY27 Revenue Growth Revenue · next two years · High confidence 20-25%
    Well. We have actually set a target of growing at 20% to 25% at least for the next two years and to achieve that, this is the investment being done.

    — Mr. Ranjit Lala

  • FY28 Revenue Target Revenue · by 2028 · High confidence 1000 crore company
    As a company, as a group, we are very confident of maintaining the growth momentum throughout the year and as we mentioned that our vision or our aim is to be 1000-crore company by 2028.

    — Mr. Ranjit Lala

Profitability

  • EBITDA Margin Profitability · going forward · High confidence 22-23%

    Previously 20-22% → 22-23%

    In the past, we have mentioned that we will maintain between 20% to 22%. I would say that going forward we are looking at around 23%. So, that's the range I can talk about and it's got nothing to do with any new sectors.

    — Mr. Ranjit Lala

Order Inflow

  • Annual Order Booking Order Inflow · for the year · High confidence 500-600 crores
    Amit, we have last time also guided for order booking of close to 500 to 600 crores for the year. We would like to maintain that guidance of 500 to 600 crores of order booking.

    — Mr. Amritanshu Khaitan

What to watch in Q2 FY26

Saravali brownfield expansion progress

next quarter / H2 FY26
Current Approved, CapEx of ₹30 crores
Target Progress towards March 2026 completion, initial output

Why it matters

This expansion is crucial for adding ₹100-150 crores in output and supporting future revenue growth.

We are also pleased to inform you that the board has in principle approved the brownfield expansion of our existing unit at Saravali, which entails a CapEx of around 30 crores with a timeline of March 2026 approximately.

Risks & concerns

  • Manpower and talent retention

    medium

    Challenge in getting the right manpower, both blue-collar and white-collar, and scarcity of labor in factories.

    Management acknowledged

  • Order deferrals in project business

    low

    As a project business, some orders can go on hold or customers may delay taking equipment, which is a potential risk.

    Management acknowledged

Q&A highlights

8 direct
Margin drivers and product mix Direct
Well, if you look at the last quarter, I would say that it is the mix of the orders that has given us these margins. There could have been some orders with high margins, you know and that's why we have this upward trend, and this can vary from time-to-time. In the past, we have mentioned that we will maintain between 20% to 22%. I would say that going forward we are looking at around 23%.

Clarifies that current healthy margins are primarily due to a favorable product mix rather than new sectors, with a revised margin guidance of 22-23%.

Asked by Mr. Sagar Shah

Subsidiaries' performance and synergy (M.E. Energy, Monga Strayfield) Direct
So, when you are looking at order booking, it is not correct to only look at the order booking of M E Energy because a lot of work Kilburn is offloading also onto M E Energy which gets consolidated and net off. So, the revenue breakup that's why will not give you a clear visibility on the actual work done by M E Energy or by Kilburn.

Explains that M.E. Energy's order intake might appear low standalone but is actively executing Kilburn's offloaded work, emphasizing the integrated group approach and leveraging client bases.

Asked by Mr. Sagar Shah

CapEx plan and capacity utilization Direct
So, this is a brownfield expansion which would add around, let's say 5000 odd square meters of working area and the output that we expect from this new capacity would be in the range of 100 to 150 crores, again depending on the product mix that we addressed from time-to-time.

Provides details on the ₹30 crore brownfield CapEx at Saravali, its expected capacity addition (₹100-150 crores output), and confirms it was part of previously discussed plans.

Asked by Mr. Dinesh Kukara

Impact of geopolitical tension/tariffs on US business Direct
We have two verticals in our business. One of them is sheet metal where we have exposure to US clients. Actually, these US clients have been with us for a very long-time. The discussion around tariffs has been going on for the past few months and we have received nothing, but positive feedback from them where they are very happy with the quality and the price at which we can offer the products that we do offer to them.

Addresses concerns about US tariffs, stating that Monga Strayfield's US clients are satisfied with quality and price, and the low-cost nature of products supplied minimizes tariff impact on overall client costs.

Asked by Mr. Dinesh Kukara

Gross block as of Q1 FY26 Direct
110. ... And for consolidated Sir? ... 140.

Provides specific gross block figures for standalone (₹110 crores) and consolidated (₹140 crores) entities, which are key balance sheet metrics.

Asked by Mr. Sagar Shah

Growth rate for FY26 and FY27 Direct
Well, as of now, we maintain the 50% growth rate which we have been seeing for last 1 quarter and I mentioned in my opening remarks also. If there is a further improvement, we will definitely keep you updated. ... We have actually set a target of growing at 20% to 25% at least for the next two years

Reiterates the 50% growth target for FY26 and sets a 20-25% growth target for the next two years (FY27-FY28), providing clarity on medium-term outlook.

Asked by Mr. Darshil

Pledge on shares Direct
There is no pledge in the company today. There is a non-disposal undertaking given by Williamson Megha for 43 lakh shares which is 9% of the promoter holding. That's it. But it's not a pledge, it's an NDU.

Clarifies that there is no pledge on shares, only a non-disposal undertaking (NDU) for 9% of promoter holding, addressing a common investor concern.

Asked by Mr. Tejas

Nuclear sector opportunity Direct
Kilburn has pioneered cooling solutions for the nuclear sector, working with NPCIL from as early as early 2000s or even late 90s. ... We have already got an order for one of the plants where the expansion is happening. This order came to us through L&T.

Highlights Kilburn's historical expertise and recent re-entry into the revived nuclear sector with a new order, indicating a significant growth opportunity.

Asked by Mr. Manan Shah

3 min read 7 chapters

Detailed narrative

Q1 FY26 Performance Overview

Kilburn Engineering Ltd. delivered a strong Q1 FY26, marking the first full period consolidation of Monga Strayfield. The consolidated top line stood at ₹129.25 crores, with an EBITDA margin of 25.77%. On a standalone basis, the top line was ₹94.67 crores and operating EBITDA was 25.49%. The company achieved a significant 48% year-on-year growth in both top line and EBITDA, setting a robust foundation for the year ahead.

Order Book and Pipeline Strength

The company reported a healthy order backlog of ₹447 crores at the end of Q1 FY26. Additionally, new orders worth ₹98 crores have been received since July 1st, 2025. The consolidated enquiry pipeline is robust, exceeding ₹4,000 crores, with a conversion factor of 20-25%. Management aims for annual order booking of ₹500-600 crores, with a focus on increasing the average ticket size and expanding export orders, which currently account for 25-30% of intake.

Capacity Expansion Plans

Kilburn's board has approved a brownfield expansion of its Saravali unit, involving a CapEx of ₹30 crores, targeted for completion by March 2026. This expansion will add approximately 5,000 square meters of working area, expected to generate ₹100-150 crores in additional output. The company also indicated potential for a Phase 2 CapEx of ₹7-12 crores at M.E. Energy in the future, aligning with its strategy for sustained growth.

Subsidiaries' Integration and Synergy

The integration of M.E. Energy and Monga Strayfield is progressing, with M.E. Energy actively executing work offloaded by Kilburn, contributing to consolidated performance. Monga Strayfield's first full quarter of consolidation was positive. Synergies are being explored, particularly in combining Kilburn's and M.E. Energy's technologies with Monga Strayfield's dryers for enhanced solutions in segments like biscuits and agro products. The group emphasizes a combined approach rather than viewing subsidiaries as separate entities.

Margin Outlook and Drivers

The company's current healthy margins are attributed to a favorable product mix in Q1. Management has revised its EBITDA margin guidance to 22-23% going forward, up from the previous 20-22%. They expect margins to improve as operations scale up and larger value orders are secured, with the benefits of scale kicking in towards the middle or end of the financial year.

Market Diversification and Export Focus

Kilburn is actively diversifying its market presence, now catering to multiple sectors including nuclear energy, where it has secured a new order through L&T. The company's exposure to the US market is limited, and Monga Strayfield's US business remains stable despite tariff discussions due to product quality and low-cost impact. Export order intake has increased to 25-30% over the last two years, with a strong focus on expanding beyond India into geographies like Africa, Europe, and Asia Pacific.

Growth Targets and Future Vision

Kilburn maintains its target of 50% revenue growth for the current financial year (FY26), aiming for ₹650-700 crores. For the next two years (FY27-FY28), a growth target of 20-25% has been set. The long-term vision is to become a ₹1,000 crore company by 2028, driven by strong enquiry pipelines, strategic acquisitions, and continuous capacity enhancements.

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