KSB revenue grew 18.95% YoY as faster costs squeezed margin
Operating margin fell 2.49 percentage points YoY, while lower tax partly cushioned the impact on net profit.
Filed 03 Nov 2026, 19:10 IST · after market close · KSB Ltd (KSB)
Key takeaways
- KSB’s consolidated revenue grew 18.95% YoY, but expenses grew 22.36%, reducing operating profit by 3.77%.
- Operating margin fell 2.49 percentage points YoY to 10.56%, leaving it below the 11.03% median for 108 reported Industrials peers.
- Net profit declined 10.22% YoY to Rs 60.6 cr despite a 1.47 percentage-point reduction in the tax rate.
Price around the results
Revenue growth did not convert into higher operating profit
KSB’s consolidated revenue rose 18.95% YoY to Rs 772.7 cr, but expenses increased faster at 22.36%. That cost gap reduced operating profit by 3.77% to Rs 81.6 cr. Sequentially, revenue grew 11.87%, while operating profit was unchanged.
Margin pressure and other-income dependence weighed on profit quality
Operating margin narrowed 2.49 percentage points YoY because expenses grew faster than revenue, and fell 1.25 percentage points sequentially for the same reason. Other income was 19.45% of profit before tax, while it declined 28.44% YoY; interest expense also rose 57.14% YoY. The 1.47 percentage-point YoY reduction in the tax rate partly offset these pressures, but net profit still fell 10.22%.
Margin remains below last year and the Industrials peer median
The 10.56% operating margin was below 13.05% in Q2FY26 and 11.81% in Q1FY27, although it was above the 8.45% reported in Q4FY26. It also trailed the 11.03% median margin among 108 Industrials companies that had reported the quarter. The quarterly trend shows a sharp fall from 16.53% in Q3FY26, followed by a partial recovery and a renewed sequential decline.
Results were filed after the close; past reactions have skewed negative
The consolidated results were filed after market close, so there is no current-session reaction to assess. Across the six previous result reactions, the stock fell four times and rose twice, with a median absolute move of 2.63%.
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 | YoY |
|---|---|---|---|---|
| Revenue | ₹773 cr | ₹691 cr | +11.87% | +18.95% |
| Other income | ₹16 cr | ₹9 cr | +67.74% | -28.44% |
| Expenses | ₹691 cr | ₹609 cr | +13.46% | +22.36% |
| Operating profit | ₹82 cr | ₹82 cr | +0.00% | -3.77% |
| Operating margin (%) | 10.56% | 11.81% | — | — |
| Interest | ₹1 cr | ₹1 cr | -21.43% | +57.14% |
| Depreciation | ₹16 cr | ₹15 cr | +7.43% | +7.43% |
| Profit before tax | ₹80 cr | ₹75 cr | +7.36% | -11.96% |
| Tax | ₹20 cr | ₹18 cr | +12.00% | -16.95% |
| Net profit | ₹61 cr | ₹57 cr | +5.94% | -10.22% |
| EPS (₹) | ₹3.48 | ₹3.29 | +5.78% | -10.31% |
Operating margin of 10.56% compares with a Industrials sector median of 11.03% across 108 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers from 10.56% after the sequential decline of 1.25 percentage points.
- Whether expense growth falls below revenue growth after rising 22.36% YoY against revenue growth of 18.95%.
- Whether other income remains a material contributor after accounting for 19.45% of profit before tax.