Detailed Narrative
H1 CY26 Financial Performance Overview
KSB Limited reported H1 CY26 revenue from sales of INR 1,292 crores, with an EBITDA of INR 146.5 crores and Profit Before Tax of INR 127.9 crores. The company achieved a Return on Capital Employed (ROCE) of 22.8%, which would be 24% when adjusted for a one-time📎 labor code impact. Despite these figures, the first half performance was described as subdued, primarily due to geopolitical situations and supply chain disruption🌐s affecting exports.
Robust Order Book and Growth Drivers
The company maintains a strong order book, reaching INR 2,744.5 crores as of June 2026, with H1 CY26 order intake (excluding Nuclear) at INR 1,530.7 crores. Order intake has shown a 14% CAGR, while revenue from operations, PAT, and EBITDA have grown at 17%, 22%, and 17% CAGR respectively. Key growth drivers include Energy (conventional, nuclear, renewable), Water & Wastewater, Commercial Building Services, Petrochemical, and emerging segments like Marine and Data Centers.
Nuclear Business Expansion and Localization
KSB is a leader in the nuclear pump segment, with a dedicated state-of-the-art facility in Shirwal and ISO-19443 certification. The company has expanded its Shirwal plant by 7,000 square meters, increasing capacity by approximately 20%. Current nuclear orders on hand amount to INR 1,235 crores, including projects for GHAVP 1&2 and Kaiga 5&6. The long-term vision for India's nuclear power is 100 gigawatts by 2047, with KSB fully prepared to support this growth through localization and advanced technology.
Challenges in Exports and Solar Segment
Export performance in H1 CY26 was negatively impacted by geopolitical situations, leading to ready pumps not being delivered and some orders being cancelled in markets like the US. The solar business also faced headwinds, with H1 revenue at INR 50-60 crores, falling below expectations due to delays in the KUSUM 2.0 scheme. Management expects a stronger second half for exports as supply chain consistency improves and anticipates the launch of KUSUM 2.0.
SAP HANA Implementation and Operational Efficiency
KSB is implementing SAP HANA, a mandatory upgrade, to enhance internal efficiency, data-driven decisions, and process automation. This global implementation is expected to go live in H1 next year, with cost allocation impacting operating expenses in the next fiscal year. Management views this as a strategic move to support growth and digital transformation, providing real-time insights and better transparency across operations.
Capital Allocation and Shareholder Returns
The company aims for annual capital expenditure in the range of INR 80-120 crores, allocated for both sustenance (machine replacement, upgrades) and growth (product development, nuclear, offices, service stations). KSB declared a 220% dividend last year. The company's royalty terms with its parent are stable, governed by a 5-year Advance Price Agreement signed this year, ensuring no unexpected changes in the future.