KSB profit falls 18.75% YoY as costs outpace revenue
QoQ margin recovered 3.36 percentage points, but remained 2.69 points below the 48-peer Industrials median.
Filed 04 Aug 2026, 14:56 IST · KSB Ltd (KSB)
Key takeaways
- KSB's consolidated net profit fell -18.75% YoY as expenses grew +5.88% against revenue growth of +3.60%.
- Operating margin recovered 3.36 percentage points QoQ to 11.81% after falling to 8.45% in Q4FY26.
- Other income contributed 12.45% of consolidated pre-tax profit, while the tax rate was 23.43%.
Price around the results
Revenue momentum improved sequentially, but profit did not match last year
Consolidated revenue grew +14.87% QoQ, with expenses rising more slowly at +10.64%, but the YoY comparison was weaker: revenue rose only +3.60% while expenses increased +5.88%. That cost-revenue mismatch reduced operating profit by -10.72% YoY and drove the -18.75% decline in net profit to Rs 57.2 cr. The sequential improvement therefore reflects better momentum from the Q4FY26 base rather than a return to last year's profit level.
Margin recovery was aided by operating leverage, but other income remained material
QoQ, revenue grew faster than expenses, lifting operating margin by 3.36 percentage points. YoY, the reverse occurred and margin fell by 1.90 percentage points. Interest rose +100.00% YoY and +133.33% QoQ, while the lower QoQ tax rate, down 1.90 percentage points, provided some support to earnings. Other income accounted for 12.45% of pre-tax profit, so reported profit was not entirely operating-led.
Margin recovered from Q4FY26 but stayed below the Industrials peer median
Operating margin moved from 13.71% in Q1FY26 to 13.05% in Q2FY26, rose to 16.53% in Q3FY26, fell to 8.45% in Q4FY26 and recovered to 11.81% in Q1FY27. The recovery breaks the prior-quarter decline but remains incomplete against the recent peak. KSB's margin was 2.69 percentage points below the 14.50% median among 48 Industrials peers that had reported the quarter.
Past result-day moves have leaned negative, with no current reaction reported
Across the last five result reactions, the stock rose twice and fell three times. The median absolute move was 1.84%, indicating that the usual reaction has been limited in size despite occasional larger moves. No current market reaction is included for this filing.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹691 cr | ₹601 cr | +14.87% | +3.60% |
| Other income | ₹9 cr | ₹18 cr | -47.16% | -40.00% |
| Expenses | ₹609 cr | ₹551 cr | +10.64% | +5.88% |
| Operating profit | ₹82 cr | ₹51 cr | +60.63% | -10.72% |
| Operating margin (%) | 11.81% | 8.45% | — | — |
| Interest | ₹1 cr | ₹1 cr | +133.33% | +100.00% |
| Depreciation | ₹15 cr | ₹15 cr | +2.07% | +5.71% |
| Profit before tax | ₹75 cr | ₹53 cr | +40.15% | -18.98% |
| Tax | ₹18 cr | ₹14 cr | +29.63% | -19.72% |
| Net profit | ₹57 cr | ₹40 cr | +43.72% | -18.75% |
| EPS (₹) | ₹3.29 | ₹2.28 | +44.30% | -18.56% |
Operating margin of 11.81% compares with a Industrials sector median of 14.50% across 48 peers that have reported Q1FY27.
What to watch
- Whether operating margin holds above 11.81% after the Q4FY26 recovery.
- Whether expense growth remains below revenue growth, following +10.64% versus +14.87% QoQ.
- Whether other income's 12.45% share of pre-tax profit declines and interest moves below Rs 1.4 cr.