Ksb Limited — Q3 FY26 earnings call

Call held 17 Mar 2026

Management summary

KSB reported a steady financial performance for CY 2025 with revenue growing 6.49% and EBITDA up 10.57%. The company boasts a strong order book of ₹2,584.8 crores as of December 2025, with significant contributions from nuclear and new product segments like solar and water/wastewater. While facing supply chain and geopolitical headwinds, management is focused on execution, maintaining margins, and expanding into high-growth areas.

Highlights

  • Revenue grew by 6.49% YoY to ₹2,695.7 crores in CY 2025, with a 17% CAGR in revenue from operations.

  • EBITDA increased by 10.57% YoY to ₹387 crores, maintaining a healthy EBITDA level of 13-14%.

  • Total orders on hand stood at ₹2,584.8 crores as of December 2025, driven by a 14% CAGR in order intake.

  • Exports showed strong growth with a 22% CAGR, constituting 17% of total business in 2025.

  • Significant progress in new product segments like solar (112% order intake CAGR), water & wastewater (30% CAGR), and firefighting (68% CAGR).

Concerns

  • Modest top-line growth of 6.49% in CY 2025 was primarily due to delayed nuclear sales revenue and project postponements.

  • Geopolitical situation impacting supply chain (LPG/gas restrictions for foundries) and temporarily hampering Middle East exports.

  • Potential for commodity price spikes due to market geopolitical situation, which could impact margins, especially in domestic project business without PVC clauses.

  • Working capital challenges in the solar business, particularly in Maharashtra, due to payment terms linked to portal uploads and documentation.

Key financials

  1. Revenue ₹2,695.7 Cr +6.5%YoY
  2. EBITDA ₹387 Cr +10.6%YoY
  3. Profit Before Tax ₹352 Cr +9.3%YoY
  4. EPS ₹15.2
  5. ROCE 23%
  6. Net Worth ₹16,128 Cr

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.

Order book

high confidence

Total value

₹2,584.8 Cr

as of 2025-12-31 quantified

Inflow this quarter

₹249 Cr

Execution

₹1,300 crores of nuclear orders to be delivered in three years.

Composition

Mix 3 products
  • Standard Pump 48%
  • Engineered Pumps 19%
  • Valves 18%

Share of order book by product· partial disclosure (85% of the book)

The company has a robust order book with significant contributions from both nuclear and non-nuclear segments, showing strong growth in order intake and exports.

Source: Prepared remarks

Capital allocation

high confidence
  • Liquidity Cash ₹283 Cr Robust net financial position with a positive cash balance.
    Net financial position also robust. We ended at ₹283 Cr and our nuclear, which is a long gestation project, which is also showing a very positive cash balance.

Guidance & targets

Nuclear Business

  • Nuclear Pump Testing Start Date Nuclear Business · Q1 CY26 · High confidence March 22, 2026
    So the latest is that we are going to start the testing on 22nd March, because the test bed is ready.

    — Rajeev Jain

  • Nuclear Pump Invoicing Nuclear Business · CY 2026 · High confidence 2-4 pumps
    So, I hope at least minimum two, maximum four pumps we should be able to invoice in this year if all goes as per plan.

    — Rajeev Jain

  • Nuclear Revenue per annum Nuclear Business · Per year · Medium confidence ₹300-400 crores
    In a good year, it could be ₹300 crores, ₹400 crores maybe per year.

    — Rajeev Jain

Profitability

  • EBITDA Margin Profitability · Ongoing · High confidence 13-14%
    we want to maintain our healthy EBITDA level of around 13%, 14% which we are there.

    — Rajeev Jain

Solar Business

  • Solar Revenue Solar Business · CY 2026 · High confidence more than ₹300 crores

    Previously ₹245 crores (CY 2025) → more than ₹300 crores

    This year we are planning much higher, more than ₹300 crores.

    — Rajeev Jain

  • Solar Growth Rate Solar Business · Ongoing · High confidence 20-25%
    At least 20% minimum, 20% to 25%. Solar, it is normal, I would say.

    — Rajeev Jain

  • Working Capital Days Reduction Solar Business · Ongoing · High confidence 1-2 days maximum reduction

    Previously 4-5 days difference from normal business → 1-2 days maximum reduction

    So, I would say that last year has been a learning curve which today we are much better. So, step by step, it's our internal goal and target to reduce that working capital also. If you ask me, it is a difference of four or five days between the working capital of normal business and solar business. So, that is a big sum which we want to bring it at least to one or two days maximum.

    — Rajeev Jain

Exports

  • Exports Growth Rate Exports · Next few years · Medium confidence 25-30%
    Right now, we are trying 25%, I would say. But 30% in a good year is also possible.

    — Rajeev Jain

Aftermarket Business

  • Aftermarket Growth Rate Aftermarket Business · Coming years · High confidence 25-30%
    So if you ask me a figure, 25%, 30% is something which we want to grow because you see, we are going into mining.

    — Rajeev Jain

What to watch in Q4 FY26

Nuclear Pump Testing & Invoicing

Next quarter / CY 2026
Current Testing scheduled for March 22, 2026
Target Successful testing and invoicing of 2-4 pumps

Why it matters

Successful execution of nuclear orders is a key revenue driver and validates the company's capabilities in a strategic segment.

So the latest is that we are going to start the testing on 22nd March, because the test bed is ready... So, I hope at least minimum two, maximum four pumps we should be able to invoice in this year if all goes as per plan.

Risks & concerns

  • Geopolitical Situation & Supply Chain Disruptions

    high

    Restrictions on LPG/gas supply affecting foundries and temporary hampering of Middle East exports due to geopolitical events.

    Management acknowledged

  • Commodity Price Volatility

    medium

    Potential for spikes in commodity prices due to market geopolitical situation, impacting profitability, especially in domestic project business without PVC clauses.

    Management acknowledged

  • Competition in Engineered Business

    medium

    High competition and price pressure in refinery, petrochemical, and coal-fired thermal project segments.

    Management acknowledged

  • Working Capital Management in Solar Business

    medium

    Challenges in working capital, particularly in Maharashtra, due to payment terms linked to portal uploads and documentation requirements.

    Management acknowledged

  • NPCIL Supplier Diversification

    medium

    NPCIL is looking for alternative suppliers for Reactor Coolant Pumps (RCPs), which will introduce competition for KSB's historical market share.

    Management acknowledged

Q&A highlights

8 direct
Domestic Demand Drivers & Supply Chain Impact Direct
energy projects in the thermal power plants is a big growth driver for this year... I wouldn't say that we are not affected that that impacts has started coming a bit in the supply chain, especially in the foundries where there is restriction of the LPG and the gas supply... our exports to Middle East may get hampered temporarily because of shipments.

Identifies key growth sectors for the domestic market and acknowledges specific supply chain and export challenges due to geopolitical events, with management's mitigation strategy.

Asked by Kunal

Growth Contribution from New Products vs. Market Direct
Yes, I would say a major part has come through the new products, be it solar, be it water, wastewater, firefighting. The percentage you see high, because I think the base has been very low.

Clarifies that a significant portion of recent growth is driven by the company's new product introductions and entry into new segments, rather than just overall market expansion.

Asked by Kunal

NPCIL Orders and Testing Update Direct
So the latest is that we are going to start the testing on 22nd March, because the test bed is ready... So, I hope at least minimum two, maximum four pumps we should be able to invoice in this year if all goes as per plan.

Provides a critical update on the long-awaited nuclear pump orders, including a specific testing date and invoicing target, which is a key revenue driver.

Asked by Mohit Surana

Q4 Top-line Growth and EBITDA Margin Expansion Direct
Yeah, top line in our planning, we had these nuclear orders in our forecast, in our planning and that unfortunately did not happen. So, that spills over to this year... On the EBITDA side, I think what could happen was also the product mix, what we could deliver last year... that was a good profitable orders which happened plus DMD orders which is also good profitable orders.

Explains the reasons behind the modest top-line growth (nuclear order delays) and strong EBITDA performance (favorable product mix from profitable aftermarket and nuclear orders).

Asked by Mohit Surana

Passing on Rising Commodity Costs Direct
Yeah, of course, it is very natural that for our standard business, which is 50% of the business, we can pass on this increase. But the remaining 50% is project business... So except the nuclear business where there is a PVC clause, there we are safeguarded.

Details the company's ability to manage commodity price volatility, highlighting that standard business can pass on costs, while project business is more challenging, with nuclear orders having a protective PVC clause.

Asked by Mohit Surana

Solar Business Manufacturing, Profitability, and Working Capital Direct
So our share of that whole package has increased today, if you ask me, maybe 30%, 35% from initially 10%... But I would say that it would be let's say, three to four points below our other business... on the working capital and the cash flow, it has been a challenge specifically from Maharashtra.

Offers a comprehensive view of the solar business, including increased in-house manufacturing, slightly lower but acceptable profitability, and ongoing efforts to improve working capital management, particularly in Maharashtra.

Asked by Kamlesh

Nuclear Opportunity Size and Competition Direct
To quantify it into per annum, yeah, it could be up and down, I would say, in a good year. In a good year, it could be ₹300 crores, ₹400 crores maybe per year... KSB as an individual supplier has the maximum share.

Quantifies the significant annual revenue potential from the nuclear business and highlights KSB's strong market position as a leading supplier, while also acknowledging the long-term potential for new competition.

Asked by Dinesh

Aftermarket Business Competition and Growth Direct
I feel competition is much lower in aftermarket compared to the new business... So if you ask me a figure, 25%, 30% is something which we want to grow because you see, we are going into mining. Mining is a very predominantly 70% of mining business is aftermarket business.

Explains that the aftermarket segment offers lower competition and significant growth potential (25-30% target), especially with expansion into areas like mining where aftermarket is a large component.

Asked by Unidentified Analyst

3 min read 8 chapters

Detailed narrative

Financial Performance Overview for CY 2025

KSB reported a revenue of ₹2,695.7 crores for CY 2025, marking a 6.49% year-over-year growth from ₹2,533.1 crores in the previous year. EBITDA increased by 10.57% to ₹387 crores from ₹350 crores, with profit before tax rising to ₹352 crores from ₹322 crores. The company maintained a robust net financial position of ₹283 crores and declared a dividend of 220%, reflecting a steady financial performance with a 17% CAGR in both revenue from operations and EBITDA.

Strong Order Book and Key Growth Drivers

As of December 2025, KSB's total orders on hand stood at ₹2,584.8 crores, comprising ₹1,303.2 crores from non-nuclear segments and ₹1,281.6 crores from nuclear projects. The company achieved a 14% CAGR in order intake, with an average monthly intake of ₹249 crores in 2025. Key growth drivers include energy (thermal and nuclear), infrastructure (water, wastewater, river linking), and building services, alongside a strong 22% CAGR in exports, which accounted for 17% of the total business in 2025.

Expansion into New Products and Markets

KSB is actively expanding its product portfolio and market reach, with new introductions like the B Pump (Vertical Turbine Pump) and localization of LUV and Boiler Recirculation Pumps. The company is making inroads into new segments such as data centers and green hydrogen, leveraging its parent company's global experience. Export efforts have led to new orders from the USA and entry into the Africa region for submersible borehole pumps, demonstrating a focus on global market diversification.

Solar Business Development and Working Capital Focus

The solar business is a significant growth area, with a 112% order intake CAGR and CY 2025 revenue of ₹245 crores, targeting over ₹300 crores for CY 2026. KSB has increased its in-house manufacturing share of the solar package to 30-35%, including controllers. While profitability is slightly lower than other businesses, the company is actively addressing working capital challenges, particularly in Maharashtra, aiming to reduce the difference in working capital days from 4-5 days to 1-2 days maximum.

Nuclear Business Outlook and Execution

The nuclear business remains a long-term growth opportunity, with testing for nuclear pumps scheduled to commence on March 22, 2026. KSB expects to invoice 2-4 nuclear pumps in CY 2026 and has an order on hand of ₹1,300 crores for nuclear projects, anticipated to be delivered over the next three years. The company projects annual nuclear revenue to be in the range of ₹300-400 crores in a good year, with ongoing finalization of orders for Gorakhpur, Haryana, and Kaiga projects.

Aftermarket and Specialized Business Growth

The aftermarket segment, branded as SupremeServ, continues to grow year-over-year, contributing around 15% to the overall order intake. KSB targets a 25-30% growth rate for its aftermarket business, which includes mining pumps where aftermarket constitutes 70% of the business. The mechanical seals business, currently around ₹15 crores, is also growing healthily and is expected to grow faster than overall pump growth, supported by investments in manufacturing capabilities.

ESG and CSR Initiatives

KSB is committed to sustainability, achieving a 59% reduction in GHG emissions and 65% green energy generation. The company has also made progress in eco-friendly packaging and sustainability assessments, surpassing its 80% target for supplier audits. CSR activities include skill development programs in ITIs, reconstruction efforts in Kerala, and digitalization of schools in Pune, reflecting a strong focus on social and environmental responsibility.

Supply Chain and Geopolitical Risks

The company acknowledges the impact of geopolitical situations on its supply chain, specifically LPG and gas supply restrictions affecting foundries, and temporary disruptions to exports to the Middle East. Management is actively mitigating these risks. Additionally, the potential for commodity price spikes is a concern, which could put pressure on margins in project businesses that lack protective PVC clauses, though standard business can pass on cost increases.

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