KSB

KSB holds a significant nuclear order book of ₹1,200 crores, representing 50% of its total orders on hand. While revenue recognition has been stalled by site-related delays at the GHAB project, management expects to invoice at least two pump sets in the latter half of next year. The company is targeting ₹250 crores in nuclear revenue for the next fiscal year, bolstered by the Kudankulam order of ₹267 crores booked last year.

The solar pump business is emerging as a key growth pillar, with an expected revenue of ₹120 crores this year. However, this segment has introduced higher working capital intensity, with receivables from Maharashtra state entities rising to ₹80-85 crores. Management attributes this to a steep learning curve in documentation and certification processes, which they expect to normalize by year-end.

The company is aggressively scaling its service arm, SupremeServ, which currently accounts for 15% of order intake. By localizing mechanical seals (80% localized for standard pumps) and setting up a central warehouse in Chinchwad, KSB aims to increase the service business share to 15-20% of total revenue. This segment is critical for maintaining blended margins as the company enters lower-margin EPC-heavy segments.

Exports faced significant pressure, dropping to 12% of revenue share due to the crisis in Bangladesh and broader geopolitical tensions. In response, KSB is pivoting its export strategy toward North America (USA) and the Middle East (Saudi Arabia). The company is also localizing production in semi-manufacturing locations like Indonesia and Thailand to meet 40-50% local value addition requirements.

Management is targeting a stable EBITDA margin of 14%, a figure some analysts viewed as conservative. Rajeev Jain clarified that while the core standard business offers higher margins, aggressive growth in segments like Solar and Firefighting pump sets brings lower margins. The 14% target is a blended goal intended to balance high-volume growth with sustainable profitability.