Bengaluru-based Kirloskar Electric Company Limited (KECL), a maker of motors, alternators, generators, transformers and diesel generator sets, reported standalone revenue from operations of ₹164.44 crore for the quarter ended 30 September 2026, up 16% from ₹142.11 crore a year earlier. Profit after tax (PAT) rose 32% to ₹5.99 crore from ₹4.53 crore. The company filed its results with the stock exchanges on 6 November 2026. The profit follows a ₹5.99 crore loss in the April–June quarter and a ₹40 crore promoter-group equity infusion.
Key Financials
According to the company’s press release, the standalone figures for Q2 FY27 against Q2 FY26 were:
- Revenue from operations: ₹164.44 crore, against ₹142.11 crore
- EBITDA (including other income): ₹12.45 crore, against ₹12.05 crore, a margin of 7.6% against 8.5%
- Operating EBITDA (excluding other income): ₹10.77 crore, against ₹6.44 crore, up 67%
- Profit before tax: ₹6.00 crore, against ₹4.53 crore
- PAT: ₹5.99 crore, a margin of 3.6% against 3.2%
Revenue rose 58% over Q1 FY27. For the first half of FY27, revenue was ₹268.29 crore, against ₹274.35 crore in H1 FY26, and PAT was nil against ₹4.98 crore. KECL said the quarter reflects better execution across business units, lower finance costs and better absorption of employee costs.
Orders and Segments
Order inflow was ₹164 crore in Q2 FY27, up 9% year on year, and ₹348 crore for the half, up 18%. Rotating machines revenue grew 24% to ₹84 crore, led by high-voltage machines, alternators and electric vehicle (EV) motors. The power generation and distribution segment, which includes transformers, earned ₹67 crore, in line with Q2 FY26. The company said healthy transformer order inflow supports execution visibility into the second half. Revenue from the others segment, including spares and services, rose 14% to ₹14 crore.
The release does not give the closing order book, name major customers or split orders by product. It also does not say how much of the transformer business serves power utilities.
Management Comment
Executive Chairman Vijay R. Kirloskar said revenue has returned to its planned path and operating profitability has improved materially. He said the credit rating upgrade and the completed equity infusion give the company a stronger balance sheet to support working capital and execution in the second half. Vijay Kirloskar said the focus remains on execution discipline, working-capital management and margin improvement.
Balance Sheet and Regulatory Backdrop
The results notes state that the consolidated net worth of the group, excluding revaluation reserve, remains eroded as of 30 September 2026. The company said it has no term loan on its books. It prepared the accounts on a going-concern basis, citing its planned sale of land at Gokul Road, Hubballi, which it says will improve working capital.
That sale, agreed in October 2022 for 31 acres 24 guntas at ₹95.12 crore, awaits a change of land use from the Karnataka government. On 25 February 2026 the High Court of Karnataka directed the Principal Secretary of the state’s Urban Development Department to issue the order within four weeks of receiving a copy. The state filed a writ appeal on 7 April 2026, KECL filed a contempt petition on 2 June 2026, and both are pending.
KECL allotted 34,68,007 equity shares at ₹115.34 each to promoter-group company Kirloskar Power Equipments Limited (KPEL) on 23 September 2026. The preferential issue was made under Chapter V of the SEBI Issue of Capital and Disclosure Requirements (ICDR) Regulations. Of the ₹40 crore raised for working capital, ₹5 crore had been used by 30 September and ₹35 crore was held in a separate bank account. The company’s statement of deviation reports no change in the use of funds.
CRISIL Ratings upgraded KECL’s long-term rating on ₹115.63 crore of bank facilities to CRISIL BB/Stable from CRISIL B+/Stable on 22 October 2026. It raised the short-term rating to CRISIL A4+ from CRISIL A4. The company has also received a ₹100 crore sanction from Kotak Mahindra Bank.
The government’s New Labour Codes, effective 21 November 2025, raised KECL’s gratuity and leave liability by ₹8.09 crore, according to the results notes. The company booked this as a non-recurring exceptional item in its FY26 accounts.
About the Company
Founded in 1946, KECL serves the power, industrial, infrastructure and mobility sectors and describes itself as one of India’s established electrical engineering manufacturers. It runs five manufacturing plants, at Mysuru, Tumakuru, Govanahalli, Pune and Hubballi. It is supported by 14 domestic branch offices and international offices in Singapore and the United Arab Emirates (UAE).
Recent Timeline
- April 2026: the National Company Law Tribunal (NCLT), Bengaluru Bench, approved on 30 April the merger of four wholly owned subsidiaries into KECL, effective 1 April 2024.
- May 2026: reported Q4 FY26 revenue of ₹163.57 crore, up 26.67%, which the company called its highest quarterly revenue in recent history.
- August 2026: shareholders approved the KPEL preferential issue at the annual general meeting on 13 August.
- September 2026: the board approved closing the June 2015 Master Restructuring Agreement with lead lender Bank of India and its consortium.
- October 2026: the board approved two Kotak Mahindra Bank overdraft facilities of up to ₹50 crore each on 26 October. One is secured by a lien on a KPEL fixed deposit, the other to be backed by a personal guarantee that the bank sought from Vijay R. Kirloskar.
Outlook
KECL enters the second half with fresh bank lines, an upgraded rating and most of its issue proceeds still unspent. The next marker is its Q3 FY27 results, which will show whether the second-quarter recovery in revenue and operating margin holds. The other development to watch is the High Court’s decision on the state’s appeal and KECL’s contempt petition, which will decide whether the Hubballi land sale can close.
Official Sources
- Kirloskar Electric Company Limited – Press Release on Q2 FY27 Results (NSE, 6 November 2026): https://nsearchives.nseindia.com/corporate/KECL_06112026150010_Press_release.pdf
- Kirloskar Electric Company Limited – Unaudited Financial Results for the Quarter Ended 30 September 2026 (NSE, 6 November 2026): https://nsearchives.nseindia.com/corporate/KECL_06112026131814_Outcome_Results_SGD.pdf
- Kirloskar Electric Company Limited – Statement of Deviation for Preferential Issue Proceeds (NSE, 6 November 2026): https://nsearchives.nseindia.com/corporate/KECL_06112026144202_Statement_of_deviation.pdf
- Kirloskar Electric Company Limited – Credit Rating Revision by CRISIL Ratings (NSE, 22 October 2026): https://nsearchives.nseindia.com/corporate/KECL_22102026163220_Credit_Rating.pdf
- Kirloskar Electric Company Limited – Outcome of Board Meeting: Preferential Allotment to KPEL (NSE, 23 September 2026): https://nsearchives.nseindia.com/corporate/KECL_23092026190530_Outcome_23092026.pdf
- Kirloskar Electric Company Limited – Outcome of Board Meeting: Kotak Mahindra Bank Facilities (NSE, 26 October 2026): https://nsearchives.nseindia.com/corporate/KECL_26102026130315_Outcome_BM_SGD.pdf
Leave a Comment