Detailed Narrative
Strong Q3 Performance and Consolidated Growth
Kilburn Engineering reported a robust Q3 FY25, with standalone revenue reaching ₹91.1 crores and an EBITDA margin of 24.60%. On a consolidated basis, including M.E. Energy, the revenue stood at ₹108.27 crores with an EBITDA margin of 21.68%, reinforcing the group's growth trajectory. This performance reflects operational efficiency despite certain project delays.
Strategic Acquisitions and Portfolio Expansion
The company successfully completed the acquisition of Pune-based Monga Strayfield on January 27, 2025, making it a 100% subsidiary. This acquisition strengthens Kilburn's presence in drying solutions, particularly in radio frequency (RF) technology, and is expected to contribute ₹90-₹100 crores in revenue in FY26. Additionally, the first phase of M.E. Energy's expansion in Pune is complete, with the second phase underway, enhancing thermal solutions capabilities.
Robust Order Book and Pipeline
As of December 31, 2024, the consolidated order book stood at ₹409 crores (Kilburn ₹368 crores, M.E. Energy ₹41 crores). The group also bagged over ₹35 crores in new orders during the current quarter. The enquiry pipeline remains strong at over ₹2,000 crores, comprising ₹1,400 crores for Kilburn and ₹600 crores for M.E. Energy, indicating healthy future visibility.
Revised FY25 and FY26 Revenue Guidance
Kilburn revised its FY25 consolidated revenue guidance to ₹450-₹500 crores, acknowledging some revenue spillover into the next fiscal year due to previously held orders. For FY26, the company is well-positioned to achieve a consolidated revenue of ₹650-₹700 crores, with subsidiaries expected to contribute over ₹200 crores. The group aims to maintain an EBITDA margin of 20% plus for FY25.
Key Export Order and Market Diversification
Kilburn secured its largest-ever export order of $15 million from JESA for the supply of rotary dryers to OCP Morocco, a significant step towards establishing a strong global footprint. The company is actively pursuing opportunities in critical sectors like nuclear, metal recovery, soda ash, and pharmaceuticals, with initial nuclear orders expected in the ₹30-₹50 crores range. Exports currently contribute 15-20% of revenue, projected to increase to 25-30% in the coming year.
Operational Enhancements and Capacity
M.E. Energy is operating at 100% utilization, driving its Phase 2 expansion. Kilburn's Ambernath factory is at 50% utilization, targeted to reach 100% by June 2025, while the Saravali factory is 70-80% occupied. The corporate office shift to Kanjurmarg aims to facilitate further expansion at the Saravali facility. Monga Strayfield's plants are operating at 85-90% utilization.
Future Growth Avenues and Market Potential
Kilburn is exploring new technologies for EV battery recycling and RDF dryers for the cement market, which is a ₹5,000 crore industry for waste heat recovery. The combined addressable market for Kilburn and its subsidiaries (including RF dryers at ₹300-₹400 crores and sheet metal fabrication) is significantly larger than its current operations, offering substantial long-term growth potential.