Kirloskar Brothers Q4 Revenue Rises To ₹1,415 Crore, Profit Declines 19% Amid Labour Code Impact

Mumbai: Kirloskar Brothers Limited reported a 19 percent year-on-year decline in consolidated net profit to Rs 112 crore in Q4 FY26, compared with Rs 138 crore in the corresponding quarter last year, despite revenue from operations rising to Rs 1,415 crore.

Sequentially, profit fell from Rs 125 crore in Q3 FY26, while revenue improved from Rs 1,116 crore. The company’s quarterly trajectory reflected stronger order execution and overseas business contribution, although profitability was impacted by exceptional expenses linked to new labour code provisions.

The pump manufacturer posted consolidated total income of Rs 1,442 crore for the March quarter against Rs 1,301 crore a year ago. Total expenses increased to Rs 1,270 crore from Rs 1,208 crore in Q4 FY25, led by higher employee costs and other operational expenses. Profit before tax declined to Rs 147 crore from Rs 184 crore in the year-ago period.

Sequential growth improved during the quarter, with revenue from operations rising nearly 27 percent over Q3 FY26. Profit before tax also climbed 31 percent quarter-on-quarter to Rs 147 crore from Rs 112 crore. However, net profit moderated due to tax expenses and exceptional items.

The company recorded an exceptional charge of Rs 26 crore in Q4 FY26, primarily linked to the implementation of the new labour codes and related actuarial valuation impact on employee post-retirement benefits.

Kirloskar Brothers said the Government of India’s new labour code framework resulted in an incremental impact of Rs 41.7 crore during FY26 at the consolidated level, classified as an exceptional item because of its non-recurring nature.

The board has recommended a final dividend of Rs 7 per equity share of face value Rs 2 each for FY26, subject to shareholder approval at the upcoming annual general meeting. Earnings per share for Q4 FY26 stood at Rs 14.04 compared with Rs 17.27 in Q4 FY25 and Rs 15.65 in Q3 FY26.

For the full financial year FY26, consolidated revenue from operations rose marginally to Rs 4,538 crore from Rs 4,492 crore in FY25. However, annual net profit attributable to equity holders declined to Rs 374 crore from Rs 413 crore in the previous year.

Revenue from overseas operations contributed Rs 1,720 crore during FY26, while domestic operations accounted for Rs 2,818 crore.

Kirloskar Brothers said it continues to monitor developments related to the implementation of the new labour codes and will review estimates as further regulatory clarifications emerge.

Disclaimer: This report is based on unaudited and audited financial filings and is not investment advice.