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Kirloskar Pneumatic Company Ltd

| Quarterly Financial Results Q3 FY 2025-26

BULLISH SENTIMENT

Report Source

⬤23rd Jan 26

Summary : Kirloskar Pneumatic reports strong Q3/9M FY26 results, declares 175% interim dividend, and appoints a new Managing Director to drive aggressive growth and innovation.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Standalone Total Expenses for Q3 FY26: Rs. 3,308 Million.
  2. Consolidated Total Expenses for Q3 FY26: Rs. 3,358 Million.
  3. Standalone Employee benefit expense for Q3 FY26: Rs. 501 Million.
  4. Consolidated Employee benefit expense for Q3 FY26: Rs. 513 Million.
  5. Standalone Revenue from operations for Q3 FY26: Rs. 4,035 Million.
  6. Consolidated Revenue from operations for Q3 FY26: Rs. 4,069 Million.
  7. Standalone Total Income for Q3 FY26: Rs. 4,096 Million.
  8. Consolidated Total Income for Q3 FY26: Rs. 4,130 Million.
  9. Standalone Total Capital Employed for Q3 FY26: Rs. 11,782 Million.
  10. Consolidated Total Capital Employed for Q3 FY26: Rs. 11,872 Million.
  11. Standalone Paid up Equity Share Capital: Rs. 130 Million.
  12. Consolidated Paid up Equity Share Capital: Rs. 130 Million.
  13. Kirloskar Pneumatic Company Limited (Holding Company) and Systems and Components India Private Limited (Subsidiary).
  14. Both standalone and consolidated unaudited financial results are presented.

Corporate Overview

  1. India
  2. Overcame multiple challenges in tough COVID times.
  3. Production of air compressors, new machines with screw and centrifugal technology.
  4. Manufacturing and assembly of piston compressor range.
  5. Refreshed brand identity with constant innovation and future focus.
  6. Young and dynamic leadership needed for aggressive growth plans.
  7. Robust leadership achieved highest ever sales and revenue.
  8. Sharper focus on production of screw compressors for oxygen generation plants.
  9. Compression Systems
  10. Other Non Reportable Segments
  11. Pioneered scaling up of production of air compressors.
  12. Taken up three new growth projects: Tyche – Semi Hermetic Compressor.
  13. Janus – Induction Motor and Khione - Screw Compressor.

Risk Factors

  1. Impact of new Labour Codes.
  2. Regulatory changes in labor laws.
  3. Uncertainty in finalization of rules.
  4. Potential for future financial impacts.

Key Drivers

  1. New Managing Director appointed.
  2. Strong Q3 and 9M financial results.
  3. Interim dividend declared (175%).
  4. New growth projects initiated.

Auditor’s Report

  1. Limited Review Report(s) received from Statutory Auditors.
  2. Auditors do not express an audit opinion.
  3. Nothing came to attention causing belief of material misstatement in financial statements.

Board Commentary

  1. Mr. Aman Rahul Kirloskar appointed as Director and Managing Director.
  2. Mr. K Srinivasan's tenure as Managing Director completes on March 31, 2026.
  3. Interim Dividend of Rs.3.50 (175%) per equity share declared.
  4. Dividend for FY 2025-26 to be paid via NECS by February 21, 2026.
  5. Statutory impact of new Labour Codes presented as exceptional item.
  6. Government of India notified four Labour Codes on November 21, 2025.
  7. Incremental impact on employee benefits of Rs. 183 Million due to wage definition change.
  8. Allotted 42,200 Equity Shares under KPCL ESOS 2019 Scheme.

Corporate Governance

  1. Heads group level initiatives in ESG compliance.
  2. Focus on sustainability, green technology, and circular economy.
  3. Mr. Aman Kirloskar is not debarred by SEBI from directorship.
  4. Nomination and Remuneration Committee recommended MD appointment.
  5. Audit Committee reviewed and recommended financial results.
  6. Group level environment conservation committee spearheads ESG initiatives.

Management Discussion & Analysis

Future Strategy

  1. Aggressive growth plans with constant innovation.
  2. Focus on sustainability, green technology, and circular economy.

Operational Focus Areas

  1. Manufacturing, Supply Chain, Foundry, Plant Engineering, Quality of Air Compressor and Transmission Divisions.

Performance Drivers

  1. Robust leadership in ACR SBU achieved highest ever sales.
  2. ACR SBU recorded greatest ever revenue of over Rs. 1,600 crores.

Risk Control Measures

  1. Company assessed and estimated incremental impact of Labour Codes.
  2. Continues to monitor finalisation of Central/State Rules and clarifications.

Critical Risks

  1. Statutory impact of new Labour Codes.