Ksb Limited — Q1 FY26 earnings call

Call held 22 Aug 2025

Management summary

KSB delivered a steady performance in the June quarter, characterized by strong order inflows and a record order book exceeding ₹2,600 crores. The company is successfully diversifying into high-margin segments like Nuclear and Solar while scaling its consumer-facing residential business. Management remains bullish on long-term growth, supported by localization of advanced pump technologies and a healthy export pipeline.

Highlights

  • H1 CY25 Profit grew to ₹1,607 million from ₹1,483 million in the previous year

  • Total Order Book stands at a robust ₹26,969 million as of June 30, 2025

  • Nuclear segment holds a massive order hand of ₹13,131 million, with first billings expected in CY25

  • Solar segment YTD sales reached ₹134.3 crores with cumulative orders for 13,227 systems

  • H1 CY25 Order Intake reached ₹17,381 million, averaging ₹2,896 million monthly

  • Maintained a strong net cash position of ₹316 crores as of June 2025

  • Export performance maintained at ~15% of order intake, with a long-term target of ₹1,000 crores

  • Residential pump business currently at ₹200-250 crores, with a strategy to double it in 3 years

Key financials

2 periods

Headline

  • Order Book
    26,969 Mn
  • Net Worth
    14,737 Mn
  • Cash Position
    ₹316 Cr
  • ROCE
    23.4%

H1

  • Profit After Tax
    1,607 Mn
    YoY +8.4%
  • Order Intake
    17,381 Mn

What they filed

Q1 FY27: revenue up 3.6%, net profit down 18.6% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue616 726 595 667 650 +6%784 +8%601 +1%691 +4%
EBITDA88 98 68 91 85 −3%130 +33%51 −25%82 −10%
Net profit62 73 52 70 68 +10%81 +11%40 −23%57 −19%
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.

Segment breakdown

  • Nuclear
    13,131 Mn Orders on Hand₹550 Cr Opportunity Size (2 Units)
  • Solar
    ₹134.3 Cr YTD Sales₹125.1 Cr YTD Order Intake10,613 Systems Installed
  • Non-Nuclear (Standard/Industrial)
    13,836 Mn Orders on Hand15% Ex-Nuclear/Solar Growth

Guidance & targets

Revenue

  • Export Revenue Revenue · next 5 years · Medium confidence ₹1,000 crores
    So can that be let's say, just to put a number, a ₹1,000 crores kind of a number in five years' time... I don't see that number impossible or not possible.

    — Rajeev Jain, Managing Director

  • Residential Business Revenue Revenue · next 3 years · High confidence ₹400-500 crores

    From ₹200-250 crores today

    We have started doing a good amount between ₹200 crores, ₹250 crores comes out of this business. And this is a part of our strategy also to double it... in the next three years.

    — Rajeev Jain, Managing Director

Volume

  • Nuclear Pump Invoicing Volume · CY 2025 · Medium confidence 2 pumps
    Yeah, we are expecting, to start invoicing two pumps this year. But, however, it also depends on the readiness of the test bed.

    — Nitin Patil, VP Nuclear Business

Other

  • Solar Working Capital Days Other · next few months · High confidence <120 days

    From >120 days today

    And once we do that, we expect it to come down below 120 days once we complete our portion.

    — Rajeev Jain, Managing Director

Capex

  • Annual Investment Capex · Annual · High confidence ₹120-130 crores
    So this investment is continuously being done over a period of time to support the growth I mentioned almost a ₹120 crores, ₹130 crores or maybe more now is being invested every year.

    — Rajeev Jain, Managing Director

Risks & concerns

  • FGD (Flue Gas Desulfurization) Segment Collapse

    medium

    Management noted the FGD segment 'suddenly overnight has vanished' due to changes in government regulations.

    Management acknowledged

  • Working Capital Intensity in Solar

    medium

    Solar business currently has a high working capital cycle (>120 days), though management is working to streamline documentation and collections.

    Both acknowledged

  • Nuclear Execution Delays

    low

    Invoicing of the first two nuclear pumps is contingent on the readiness of the customer's test bed at Tarapur.

    Management acknowledged

  • Blue-Collar Attrition

    low

    Company is facing 9-10% attrition even in manufacturing roles, which was previously unexpected.

    Management acknowledged

Areas of evasion (1)

  • Specific value of the European nuclear export order due to non-disclosure agreements.

Q&A highlights

2 direct
Nuclear and Solar Revenue Contribution Direct
The sales revenue last year was around ₹190 crores. Solar, solar was ₹190 crores, nuclear, we have still yet to invoice... we are expecting two pumps [this year].

Clarifies that the massive Nuclear order book has not yet started contributing to the top line, representing a significant future revenue trigger.

Asked by Mahesh, LIC Mutual Fund

Competition in the Nuclear Segment Partial
One of our competitor has a development order. It is based on how that pans out... the qualification process is long and lengthy. It's not easy to make the first pump completely indigenous.

Acknowledges emerging competition but highlights the high entry barriers and long gestation periods for indigenous nuclear pump manufacturing.

Asked by Ashish, Sundaram Mutual Fund

Export Growth Strategy Direct
Absolute number of exports... is growing very healthy. But since our domestic is growing much higher, solar and other things, so that get camouflaged in that percentage.

Explains why the export percentage remains stagnant at 15% despite strong absolute growth, due to the rapid scaling of the domestic business.

Asked by Shiv Chanani, Baroda BNP Paribas

2 min read 5 chapters

Detailed narrative

Nuclear Segment: A Multi-Year Growth Engine

KSB's nuclear business is poised for a significant transition from order booking to revenue recognition. With an order hand of ₹1,313 crores and a breakthrough order for the Kudankulam light water plant, the company is the only pump manufacturer in India with ISO 19443 safety certification. Management expects to invoice the first two pumps in CY 2025, with a steady run rate of 4-5 pumps per year thereafter. The total opportunity size for upcoming 700MW units is estimated at ₹500-600 crores for every two units, providing long-term visibility.

Solar Business: Scaling Beyond PM Kusum

The solar segment has seen rapid growth, with YTD sales of ₹134.3 crores and over 10,000 systems installed. While the business was initially cautious due to working capital requirements, KSB has now crossed the learning curve and is participating independently in tenders across multiple states like Telangana and Maharashtra. The company is focusing on backward integration by developing its own PMSM motors and controllers to improve margins and delivery timelines to 4-5 weeks.

Strategic Pivot to Consumer/Residential Markets

KSB is aggressively targeting the residential and agricultural pump markets, traditionally a low-share area for the company. Following successful TV commercials in the East zone, which led to double-digit growth (12-14%), the company is expanding marketing efforts to the North and South. The goal is to double the current ₹200-250 crore residential revenue within three years by leveraging the KSB brand's premium positioning and expanding the dealer network.

Export Ambitions and Global Hub Status

The parent company increasingly views KSB India as a global manufacturing hub, particularly for competitive manufacturing and tech development. Absolute export numbers are growing healthily, with a target to reach ₹1,000 crores in five years from the current ₹350-450 crore range. Key growth drivers include gas-based power plant projects in the U.S. and Saudi Arabia, and the localization of 'white iron' castings for the global mining market.

Operational Excellence and Capacity Expansion

To support its growth targets, KSB is investing ₹120-130 crores annually in capacity upgrades, including new sheds at the Sinnar and Shirwal plants. The Shirwal facility recently achieved a 3-Star MBK rating, a distinction held by only three KSB sites globally, which enhances its ability to serve as an export base for the group. Despite industry-wide talent challenges, KSB maintains a relatively low attrition rate of 9-10% through internal skill development and ITI partnerships.

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