Ksb Limited — Q2 FY26 earnings call

Call held 17 Nov 2025

Management summary

KSB reported a steady quarter characterized by record-high order books but tempered by execution delays in the high-margin nuclear segment. While standard and industrial pump segments continue to grow at double digits, the overall revenue growth was slowed by technical bottlenecks at NPCIL testbeds. Management remains bullish on the long-term trajectory, citing a massive thermal power pipeline and aggressive expansion in 'Sunrise' segments like solar and firefighting.

Highlights

  • 9M Revenue grew to ₹1,911.7 crores from ₹1,806.7 crores, a 5.8% YoY increase

  • Profit Before Tax (9M) rose 8.9% YoY to ₹248.5 crores

  • Total Orders on Hand reached a robust ₹2,639.2 crores, including ₹1,313.8 crores in Nuclear

  • Average monthly order intake for YTD Sep 2025 stood at ₹254 crores

  • Export performance reached 17% of total order intake (₹390 crores for 9M)

  • Solar business expected to grow by at least 50% YoY with a revenue target of ₹250+ crores

  • EBITDA margins remained steady in the 13-14% range despite product mix shifts

  • Nuclear project dispatches (Gorakhpur/Kudankulam) delayed to Q4 2025 or H1 2026 due to testbed infrastructure issues

Concerns

  • Nuclear Project Execution Delays

Key financials

2 periods

Headline

  • Order Book
    ₹2,639.2 Cr
    YoY +22%
  • EBITDA Margin
    13.5%
  • ROCE
    23.4%

9M

  • Revenue
    ₹1,911.7 Cr
    YoY +5.8%
  • Profit Before Tax
    ₹248.5 Cr
    YoY +8.9%

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

  • Water
    29% Sales Share
  • General Industry
    23% Sales Share
  • Petrochemical and Chemical
    21% Sales Share
  • Energy
    18% Sales Share
  • Building Services
    8% Sales Share
  • SupremeServ (Aftermarket)
    17% Revenue Share

Guidance & targets

Revenue

  • Top-line Growth Revenue · FY26 · High confidence 10%+
    In general, I would answer that is in our strategy that at least minimum double-digit if not more.

    — Rajeev Jain, Managing Director

  • Solar Business Revenue Revenue · FY26 · Medium confidence ₹250 crores
    So, we should be able to do something similar more than ₹250 crores or something like that.

    — Rajeev Jain, Managing Director

Margin

  • EBITDA Margin Margin · FY26 · High confidence 13-14%
    EBITDA margin is also on a consistent level, I would say, 13% to 14%. This is something similar.

    — Rajeev Jain, Managing Director

Capacity

  • Shirwal Plant Expansion Capacity · March 2026 · High confidence 14,000 square meters
    Shirwal, we are expanding, the land we had taken, that 14,000 square meter, that will be commissioned by March next year.

    — Rajeev Jain, Managing Director

Other

  • SupremeServ Revenue Share Other · next 3-4 years · Medium confidence 20%

    From 17% today

    Yes, there are future plans to really grow it, say, up to 20%.

    — Rajesh Kulkarni, Aftermarket Head

Risks & concerns

  • Nuclear Project Execution Delays

    high

    Delays in NPCIL testbeds for Gorakhpur and Kudankulam are pushing back high-value dispatches.

    Both acknowledged

  • Working Capital Intensity in Solar

    medium

    Solar business involves long cash-to-cash cycles and fixed-term contracts sensitive to PV panel price fluctuations.

    Management acknowledged

  • Monsoon Impact on Agri and Solar

    medium

    Extended monsoons directly impacted solar installations and agricultural pump demand in the reported period.

    Management acknowledged

Areas of evasion (1)

  • Specific margin profiles for the new 'Sunrise' segments were described as 'mixed' without granular data.

Q&A highlights

3 direct
Nuclear Dispatch Delays Direct
The progress at testbed has not been as we expected... especially related to electrical power and some auxiliary connections which are not in our scope of work.

Explains why revenue growth appeared to 'taper' despite a massive order book; the delay is due to external infrastructure, not KSB's manufacturing.

Asked by Unidentified Analyst

Export Strategy and Parent Support Direct
Having that Level 3 or the best certification of this plant helps us to get better acceptance within the group as well as with customers... the group ensures that the loading of all plants is adequate.

Confirms that KSB India is becoming a global hub for the parent company, particularly for high-precision parts and US gas power projects.

Asked by Unidentified Analyst

Profitability of Engineered vs. Standard Pumps Direct
Unfortunately, I disagree with your point that engineered pump business is more profitable business... standard business is more dealer business, where we have a better control.

Corrects a common investor misconception; standard pumps sold through dealers offer better margins than large, complex EPC-driven engineered projects.

Asked by Unidentified Analyst

2 min read 5 chapters

Detailed narrative

Nuclear Segment: The Execution Bottleneck

The primary drag on Q2/9M performance was the delay in nuclear pump dispatches. While KSB has four pumps ready for the Gorakhpur (GHAPV) project, testing at the NPCIL-built testbed has stalled due to electrical power connection issues and auxiliary piping delays outside KSB's scope. Management now expects dispatches to begin in late Q4 2025 or H1 2026, with a total of 8 pumps scheduled for delivery across 2026 and 2027.

Solar and Sunrise Segments Gaining Traction

The solar business is emerging as a significant growth driver, with a target to grow 50% YoY and contribute over ₹250 crores in revenue. KSB is expanding its footprint from Maharashtra to a Pan-India level, including new entries in the Northeast and Madhya Pradesh. Other 'Sunrise' segments like firefighting (currently <5% of sales) are being targeted for double-digit market share within 2-3 years, supported by new UL/FM certifications.

Order Book Momentum and Thermal Power Revival

KSB's order book stands at a record ₹2,639.2 crores, providing strong revenue visibility. Management highlighted a major revival in the thermal power sector, with 43 GW of new capacity planned by the government. KSB recently secured a significant order from L&T for supercritical boiler feed pumps and expects further orders from Adani projects, positioning the Energy segment for a 4-5 year growth cycle.

SupremeServ: The Margin Accretive Engine

The aftermarket brand, SupremeServ, currently contributes 16-17% of total revenue. KSB is aggressively targeting a 20% share by leveraging its CRM system (C4C) to track every installed pump's lifecycle. The segment is highly profitable and less sensitive to EPC pricing pressures, acting as a buffer for overall EBITDA margins which management aims to maintain at 13-14%.

Capacity Expansion and Global Hub Status

To support the growing order book, KSB is increasing its annual investment from ₹80 crores to ₹130 crores. Key projects include a 14,000 sqm expansion at the Shirwal plant and a new shed at Sinnar, both expected to be commissioned by March 2026. The Indian entity's 'Level 3' rating from the parent group has further solidified its role as a global manufacturing hub, particularly for the US and Middle East markets.

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