KPCL's Rs 39.8 cr profit gets support from Rs 19 cr other income
The standalone quarter had no interest expense, while management highlighted a KOBELCO cooperation plan and a new water-well compressor launch.
Filed 27 Oct 2026, 13:44 IST · Kirloskar Pneumatic Company Ltd (KIRLPNU)
Key takeaways
- Standalone Q2FY27 operating profit of Rs 40.7 cr was supplemented by Rs 19.0 cr of other income, making reported net profit of Rs 39.8 cr less purely operating.
- Operating margin of 12.73% was 1.74 percentage points above the 10.99% median for 30 Industrials peers that had reported.
- Management said KPCL had signed an MoU with KOBELCO to explore cooperation in non-general-purpose compressors, focused mainly on oil and gas and carbon-neutrality-related opportunities.
Price around the results
Other income was material to reported profit
KPCL reported standalone revenue of Rs 319.7 cr and operating profit of Rs 40.7 cr in Q2FY27. Other income of Rs 19.0 cr lifted profit before tax to Rs 50.6 cr, so net profit of Rs 39.8 cr should be read alongside a meaningful non-operating contribution. There was no interest expense, while the tax rate was 21.34%.
Operating margin was ahead of the Industrials peer median
The company's 12.73% operating margin was 1.74 percentage points above the 10.99% median among 30 Industrials peers that had reported the quarter. Expenses of Rs 279.0 cr absorbed most of the Rs 319.7 cr revenue base, leaving operating profit at Rs 40.7 cr. The peer comparison supports the view that the quarter's operating profitability was above the sector's reported middle ground.
KOBELCO tie-up broadens the compressor agenda
Management said KPCL had signed an MoU with KOBELCO to explore strategic cooperation in non-general-purpose compressors in India. The company said the proposed cooperation would combine KPCL and Kirloskar Group customer, sales, procurement, manufacturing and project-execution capabilities with KOBELCO's technology, with oil and gas and carbon-neutrality-related fields identified as focus areas. The presentation also said KPCL launched the KDP 1200-330 S water-well compressor.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 |
|---|---|
| Revenue | ₹320 cr |
| Other income | ₹19 cr |
| Expenses | ₹279 cr |
| Operating profit | ₹41 cr |
| Operating margin (%) | 12.73% |
| Interest | ₹0 cr |
| Depreciation | ₹9 cr |
| Profit before tax | ₹51 cr |
| Tax | ₹11 cr |
| Net profit | ₹40 cr |
| EPS (₹) | ₹3.07 |
Operating margin of 12.73% compares with a Industrials sector median of 10.99% across 30 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- The companies aim to expand business primarily in oil and gas and create opportunities in carbon-neutrality-related fields.
Expansion
- The ESG project has total water storage capacity of 16.40 million litres and is connected to the entire Nashik factory.
New products
- KPCL launched the KDP 1200-330 S water-well compressor.
New initiatives
- KPCL signed an MoU with KOBELCO to explore strategic cooperation in non-general-purpose compressors in India.
- The cooperation will combine KPCL and Kirloskar Group capabilities with KOBELCO technologies and product capabilities.
Competition
- The KPCL-KOBELCO cooperation aims to strengthen the companies’ business platform and competitiveness in India’s growing market.
What to watch
- Whether operating margin holds above 12.73% in the next reported quarter.
- How other income compares with Rs 19.0 cr and profit before tax with Rs 50.6 cr.
- Updates on the KOBELCO cooperation and the KDP 1200-330 S launch alongside the current Rs 319.7 cr revenue base.