KECL returns to profit as revenue jumps +58.34% qoq
Consolidated operating margin improved 6.90 percentage points, but other income supplied 28.05% of pre-tax profit.
Filed 06 Nov 2026, 13:19 IST · Kirloskar Electric Company Ltd (KECL)
Key takeaways
- Consolidated revenue increased +58.34% qoq to Rs 164.44 cr, helping KECL swing to a net profit of Rs 5.98 cr from a Rs 5.99 cr loss.
- Expenses grew +47.46%, slower than revenue, lifting operating margin by 6.90 percentage points to 6.54%.
- Other income contributed 28.05% of pre-tax profit, while the 0.17% tax rate kept net profit close to pre-tax profit.
Price around the results
Revenue recovery drives a quarterly turnaround
Kirloskar Electric’s consolidated revenue increased +58.34% qoq, while expenses rose +47.46%, reversing the operating loss recorded in Q1FY27. Operating profit consequently moved to Rs 10.76 cr from a loss of Rs 0.37 cr, and net profit turned positive at Rs 5.98 cr from a Rs 5.99 cr loss. This is a sequential comparison; no year-on-year comparison is provided.
Margin improved, but profit quality needs watching
The slower increase in expenses than revenue lifted operating margin by 6.90 percentage points to 6.54%. Interest expense still increased +4.38% qoq to Rs 5.48 cr, limiting the conversion of operating profit into pre-tax profit. Other income accounted for 28.05% of pre-tax profit, while the tax rate was only 0.17%, so both items supported reported net profit.
Margin remains below the Industrials peer median
KECL’s 6.54% operating margin was 4.96 percentage points below the 11.50% median for 197 Industrials companies that had reported the same quarter. Sequentially, the margin improved from -0.36% in Q1FY27, marking a sharp recovery from the prior quarter rather than evidence of a longer multi-quarter trend.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹164 cr | ₹104 cr | +58.34% |
| Other income | ₹2 cr | ₹1 cr | +147.06% |
| Expenses | ₹154 cr | ₹104 cr | +47.46% |
| Operating profit | ₹11 cr | ₹-0 cr | — |
| Operating margin (%) | 6.54% | -0.36% | — |
| Interest | ₹5 cr | ₹5 cr | +4.38% |
| Depreciation | ₹1 cr | ₹1 cr | -3.96% |
| Profit before tax | ₹6 cr | ₹-6 cr | — |
| Tax | ₹0 cr | ₹0 cr | -75.00% |
| Net profit | ₹6 cr | ₹-6 cr | — |
| EPS (₹) | ₹0.89 | ₹-0.90 | — |
Operating margin of 6.54% compares with a Industrials sector median of 11.50% across 197 peers that have reported Q2FY27.
What to watch
- Whether operating margin stays above the 6.54% Q2FY27 level.
- Other income’s share of pre-tax profit compared with 28.05%.
- Interest expense versus Rs 5.48 cr after its +4.38% qoq increase.