Kirloskar Industries profit jumps, but operating margin slips
Sequential profit growth benefited from higher other income, while costs grew faster than revenue and the tax rate rose 9.22 percentage points.
Filed 06 Nov 2026, 13:13 IST · Kirloskar Industries Ltd (KIRLOSIND)
Key takeaways
- Consolidated net profit rose 32.83% sequentially, helped by a 50.97% increase in profit before tax.
- Operating margin narrowed 0.42 percentage points as expenses grew 17.20%, faster than revenue growth of 16.63%.
- The stock gained 1.87% on the results day, with trading volume at 8.48 times the normal level.
Price around the results
Profit growth was led by pre-tax earnings
Kirloskar Industries reported consolidated net profit of Rs 104.60 cr in Q2FY27, up 32.83% from Q1FY27, while revenue increased 16.63% to Rs 2,075.02 cr. Profit before tax grew 50.97%, helped partly by other income, which accounted for 14.31% of pre-tax profit. Interest expense also rose 15.30%, limiting the conversion of operating profit into pre-tax profit.
Costs outpaced revenue and margins eased
Expenses grew 17.20%, faster than revenue, so operating margin narrowed 0.42 percentage points to 11.65%. Operating profit still increased 12.50%, but the slower growth than revenue reflects the cost pressure in the quarter. The tax rate rose 9.22 percentage points to 33.77%, so the net-profit increase was achieved despite a higher tax burden.
Margin was just above the Industrials peer median
The 11.65% operating margin was 0.15 percentage points above the 11.50% median for the 197 Industrials peers that had reported the same quarter. Sequentially, margin declined from 12.07% in Q1FY27, marking a weaker operating conversion even as revenue momentum improved. The available quarterly trend covers the move from Q1FY27 to Q2FY27, rather than a longer run of results.
Shares rose on heavy volume after the filing
The stock gained 1.87% on the results date, although it opened 0.98% lower. Trading volume was 8.48 times the normal level, indicating a pronounced market response to the filing.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹2,075 cr | ₹1,779 cr | +16.63% |
| Other income | ₹23 cr | ₹-10 cr | — |
| Expenses | ₹1,833 cr | ₹1,564 cr | +17.20% |
| Operating profit | ₹242 cr | ₹215 cr | +12.50% |
| Operating margin (%) | 11.65% | 12.07% | — |
| Interest | ₹34 cr | ₹30 cr | +15.30% |
| Depreciation | ₹72 cr | ₹70 cr | +1.86% |
| Profit before tax | ₹158 cr | ₹105 cr | +50.97% |
| Tax | ₹54 cr | ₹26 cr | +107.64% |
| Net profit | ₹105 cr | ₹79 cr | +32.83% |
| EPS (₹) | ₹48.58 | ₹32.05 | +51.58% |
Operating margin of 11.65% compares with a Industrials sector median of 11.50% across 197 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +1.87% | -0.14% |
Volume on the results session was 8.48× its 20-day average.
What to watch
- Whether operating margin recovers from 11.65% after the 0.42-percentage-point sequential decline.
- Whether expenses continue to grow faster than revenue, after rising 17.20% versus revenue growth of 16.63%.
- Whether the tax rate moves down from 33.77% and other income remains below 14.31% of pre-tax profit.