Financial Performance Highlights

Consolidated Performance (Q2 FY27)

  • Revenue: ₹1,276.7 crore, up 24% YoY
  • EBITDA: ₹143.2 crore, up 16% YoY
  • EBITDA Margin: 11.2%
  • Order Intake: ₹2,047.2 crore, up 68% YoY

Consolidated Performance (H1 FY27)

  • Revenue: ₹2,381.6 crore, up 19% YoY
  • EBITDA: ₹273.8 crore, up 9% YoY
  • EBITDA Margin: 11.5%

Standalone Domestic Business (Q2 FY27)

  • Revenue: ₹799.1 crore, up 23% YoY
  • EBITDA: ₹93.7 crore, up 37% YoY
  • Profit After Tax: ₹54.4 crore, up 45% YoY
  • Small Pumps Business: Grew 12% with approximately 50% from value increase and balance from volume growth

International Business (Q2 FY27)

  • Revenue: Growth of 24% YoY
  • EBITDA: ₹23.3 crore
  • EBITDA Margin: 5.3%
  • Performance driven by strong execution across SPP U.K., SPP USA and Dutch Group

Order Book Position

Domestic Order Book (as of September 2026)

  • Total: ₹2,926.4 crore, up 29% YoY
  • Excludes small pumps order book
  • Strong pipeline across segments

International Order Book

  • Pending order book: ₹1,701.3 crore, up 32%
  • Provides strong visibility for coming quarters

Business Segment Performance

Oil & Gas Segment

  • Significant growth in orders from Qatar (North Field NFPS projects), Middle East (ADNOC), and Guyana
  • Domestic oil and gas sales jumped 5x
  • Lower margins in oil & gas business due to specialized skill requirements and higher employee expenses

Power Sector

  • Orders received from nuclear sector: 10 numbers of primary circuit and 57 numbers of canned motor pumps
  • Estimated value: ₹60-70 crore for both packages
  • Power order book increased from ₹600 crore to ₹700 crore sequentially

Data Center Business

  • Strong traction in data centers, fire and HVAC projects, particularly in SPP USA
  • Europe data centers showing growth (Portugal's Sines data center expansion)
  • Framework agreement discussions ongoing with large US data center EPC operator

Fire Protection Business

  • Strong growth in industrial fire segment driven by warehouse construction boom
  • Worldwide market estimated at approximately $0.5 billion
  • Facing commoditization pressure from Chinese companies with FM/UL accreditation

Margin Analysis

Gross Margin Pressure

  • 400 bps decline in gross margins in both standalone and consolidated business
  • Primarily due to raw material cost increases (copper, gun metal, steel) by 7-8%
  • Price increases implemented but impact varies by product mix
  • Expected to moderate in coming quarters

International Margin Challenges

  • U.K. business reported 0% profit in H1FY27
  • Margins declined from 12% in FY25 to 7% in FY26
  • Factors affecting margins: material cost increase (8%), lower service business contribution, higher oil & gas project execution costs
  • Expected recovery in H2FY27 but not to previous peak levels

Nuclear Power Opportunity

Primary Coolant Pump Development

  • Material requirements successfully proven
  • Qualified to participate in NPCIL tender for 32 primary coolant pumps
  • Tender process ongoing with technical bid evaluation first
  • Expected to be significant opportunity for future growth

Current Nuclear Orders

  • Safety package and canned motor moderator pumps worth ₹60-70 crore
  • Indication of renewed ordering activity for nuclear power plants

Working Capital & Inventory

  • Working capital increased significantly by approximately ₹225 crore standalone and ₹250 crore consolidated
  • Higher inventory due to preparation for executing long lead-time capital goods orders (8-12 months delivery)
  • Most inventory in WIP stage awaiting dispatch
  • Expected liquidation in Q3 and Q4

Regional Business Outlook

Domestic Market

  • Confidence in double-digit revenue growth for FY27
  • Strong demand across thermal power, nuclear power, oil & gas, and infrastructure segments
  • Data center market just beginning in India
  • Drought conditions may drive retail pump demand in Q3

International Markets

  • U.K. domestic industrial market severely challenged due to high electricity prices (~₹30/unit)
  • Growth driven by exports to US, Guyana, Middle East rather than domestic U.K. market
  • AMP8 (Asset Management Program 8) in U.K. expected to drive future domestic water business
  • Focus on utilities and services targeting 40% of KBI BV business in 3 years (currently 35% at SPP U.K. level)

Management Guidance

  • Expect margin improvement in H2FY27 for international business
  • Domestic business to maintain double-digit growth trajectory
  • Service business recovery expected in current quarter and next quarter
  • Nuclear power tendering process ongoing with significant future potential