KSB Q1 FY27: Consolidated PAT falls 19% YoY to ₹57 Cr on valves margin collapse
PAT -18.75% YoY · revenue +3.6% · margins compressing
₹690.7 Cr
+3.6% YoY
₹57.2 Cr
-18.75% YoY
8.22%
-2.2pp YoY
₹3.29
KSB's consolidated PAT for the quarter ended 30 June 2026 came in at ₹57.2 Cr, down 18.8% YoY from ₹70.4 Cr, even as revenue from operations grew a modest 3.6% YoY to ₹690.7 Cr (₹666.7 Cr). Sequentially the print looks much stronger — PAT is up 43.7% QoQ and revenue up 14.9% QoQ off a seasonally soft March quarter — but per the YoY-primary read this is a weak quarter: profit growth trailed revenue growth by a wide margin, and both operating margin (11.8% vs 13.7% YoY) and net margin (8.2% vs 10.4% YoY) compressed. No analyst consensus estimates for this specific quarter were found in a web search, so the print cannot be benchmarked against Street numbers; vsStreet is marked unknown rather than guessed.
Q1 FY-2027 vs prior quarters
The margin compression is not evenly spread across the business. Segment data shows the Pumps business held up reasonably well — revenue of ₹581.0 Cr (+5.4% YoY) and segment profit of ₹65.0 Cr, roughly flat on ₹64.0 Cr YoY (margin ~11.2% vs 11.6%). The real damage is in Valves: revenue fell 4.8% YoY to ₹110.7 Cr and segment profit collapsed to ₹4.5 Cr from ₹17.8 Cr a year ago — a margin compression from 15.3% to 4.1%. A ₹5.0 Cr YoY drop in 'other unallocable income' (₹2.4 Cr vs ₹7.4 Cr) and a rise in finance costs (₹1.4 Cr vs ₹0.7 Cr) added further drag; together these items account for almost the entire ₹17.5 Cr YoY decline in consolidated PBT.
The stock went into the print at ₹872.6, down 6.6% over the past month of trading.
What the summary numbers don't show
No exceptional items this quarter (unlike FY2025's ₹25.5 Cr labour-code charge), so the YoY profit decline is fully operational, not one-off-driven
Management guides for 15-20% revenue growth in the pump segment for CY2026, driven by a strong order book and the commencement of nuclear project execution. The company aims to maintain EBITDA margins around 13-14% by balancing project business with high-margin aftermarket and export sales, though commodity price volat
— This quarter: missed
Against management's own guidance from the last concall — 15-20% pump-segment revenue growth for CY2026 and EBITDA margins sustained around 13-14% — this quarter falls short on both counts: pump growth of 5.4% YoY is well below the guided band, and consolidated OPM of 11.8% sits below the 13-14% target, consistent with management's flagged commodity-cost watchpoint. The quarter's other developments — the switch of statutory auditor from Price Waterhouse to B S R & Co. LLP, confirmed via an AGM addendum and a revised (unchanged-numbers) results intimation in April — are procedural and don't bear on the operating numbers. No company press release commentary was available at the time of this analysis, so management's own framing of the quarter could not be cross-checked against the figures.
W1
Valves segment margin recovery — fell to 4.1% (₹4.5 Cr) from 15.3% (₹17.8 Cr) YoY; watch for a bounce toward historical mid-teens levels next quarter
W2
Pump-segment revenue growth of 5.4% YoY trails management's guided 15-20% CY2026 band — watch whether nuclear-project execution accelerates in H2
W3
Consolidated EBITDA margin at 11.8% remains below management's guided 13-14% range — watch for commodity-cost/mix normalization
Figures converted from INR Million to INR Crore (÷10). Consolidated PBT (₹74.7 Cr) = Total Income − Total Expenses (₹70.5 Cr) + ₹4.2 Cr share of associate (KSB MIL Controls) profit — the associate line, not a calc error. No exceptional items in this or the year-ago quarter; the ₹25.5 Cr 'impact of new labour codes' exceptional item sits only in the FY2025 annual column.