Kirloskar Electric Q1 FY27 Loss at ₹5.95 Crore

Financial Performance Summary (Standalone)

| Revenue from operations (₹ lakhs) | 10,385 | 16,357 | 13,224 | 58,934 |

| Other income (₹ lakhs) | 68 | 81 | 96 | 1,106 |

| Total income (₹ lakhs) | 10,453 | 16,438 | 13,320 | 60,040 |

| Cost of materials consumed (₹ lakhs) | 8,083 | 11,306 | 9,671 | 41,643 |

| Employee benefit expenses (₹ lakhs) | 1,952 | 2,474 | 1,844 | 7,811 |

| Finance costs (₹ lakhs) | 525 | 666 | 635 | 2,548 |

| Depreciation and amortisation (₹ lakhs) | 101 | 113 | 107 | 434 |

| Other expenses (₹ lakhs) | 1,299 | 2,310 | 1,177 | 6,597 |

| Profit/(loss) before tax (₹ lakhs) | (595) | (53) | 45 | 875 |

| Tax expense (₹ lakhs) | 4 | 9 | - | 30 |

| Profit/(loss) after tax (₹ lakhs) | (599) | (62) | 45 | 845 |

| Total comprehensive income (₹ lakhs) | (590) | (11) | 51 | 662 |

Financial Performance Summary (Consolidated)

| Revenue from operations (₹ lakhs) | 10,385 | 16,357 | 13,224 | 58,934 |

| Other income (₹ lakhs) | 68 | 81 | 95 | 1,106 |

| Total income (₹ lakhs) | 10,453 | 16,438 | 13,320 | 60,040 |

| Profit/(loss) before tax (₹ lakhs) | (595) | (54) | 42 | 868 |

| Profit/(loss) after tax (₹ lakhs) | (599) | (63) | 42 | 838 |

| Total comprehensive income (₹ lakhs) | (590) | (12) | 47 | 655 |

Key Financial Highlights

Revenue & Profitability:

Q1 FY27 revenue declined 21.5% YoY to ₹103.85 crore from ₹132.24 crore in Q1 FY26
Company reported loss before tax of ₹5.95 crore compared to profit of ₹0.45 crore in Q1 FY26
Material costs improved to 69.1% of revenue from 71.9% in Q1 FY26
Finance costs reduced by 17.3% YoY to ₹5.25 crore

Operational Metrics:

Order booking for Q1 FY27 stood at ₹184 crore, up 36% QoQ and 28% YoY
Book-to-bill ratio of 1.79 times
Transformer business at Mysore recorded highest ever Q1 intake
Cast resin transformer gained traction in data centre segment

Balance Sheet & Capital Structure:

Paid-up equity share capital: ₹66.41 crore (face value ₹10 each)
Net worth of the group (after excluding revaluation reserve) is eroded
Company has repaid all term loans restructured under JLF mechanism

Strategic Initiatives & Corporate Actions

Preferential Issue:

Board approved issuance of up to 34,68,007 equity shares at floor price of ₹115.34 per share
Total fundraising up to ₹40 crore from Kirloskar Power Equipments Limited (promoter group company)
Subject to shareholder and regulatory approvals

Merger Completion:

Merger of four wholly-owned subsidiaries (Kelbuzz Trading Private Limited, SKG Terra Promenade Private Limited, SLPKG Estate Holdings Private Limited, and Luxquisite Parkland Private Limited) with holding company effective April 1, 2024
NCLT Bangalore Bench approved merger on April 30, 2026
Financial results include effect of the merger with comparative figures restated

Asset Monetization:

Company in advanced stage for monetization of immovable property at Gokul Road, Hubballi
Expected to improve working capital and performance in forthcoming periods
Agreement to Sell for 31 acres 24 guntas at Gokul Road, Hubballi for consideration of ₹9,512 lakhs (pending change of land use approvals)
Separate sale of 1.06 acres at Gokul Road, Hubballi for ₹300 lakhs (possession handed over on December 26, 2025)

Regulatory & Legal Matters

Cost Auditor Appointment:

Board appointed M/s. Rao, Murthy & Associates, Cost Accountants, Bengaluru (FRN: 000065) as Cost Auditors for FY2026-27

Tax Litigation:

Company filed Special Leave Petition (SLP) before Supreme Court regarding resale tax penalty demand of ₹527 lakhs on erstwhile subsidiary Kaytee Switchgear Limited
Management believes outcome will be favorable and no provision required

Land Use Change Litigation:

Ongoing legal proceedings with Karnataka Urban Development Department for change of land use for Hubballi property
Contempt petition filed on June 2, 2026, matter pending before Honourable High Court of Karnataka

Labour Code Impact:

New Labour Codes effective from November 21, 2025 resulted in increase in gratuity and leave liability by ₹809 lakhs
Treated as exceptional item in FY26 results due to materiality and non-recurring nature

Auditor's Review & Emphasis of Matter

Statutory auditors issued limited review report with no modifications
Emphasis on going concern basis despite accumulated losses and eroded net worth
Emphasis on merger accounting and tax litigation matters
Auditors relied on management's representations regarding restructuring plan and asset monetization

Management Commentary

Mr. Vijay Kirloskar, Executive Chairman commented: "The first quarter reflected temporary external constraints on billing, but our order intake of ₹184 Crores - the strongest first quarter we have recorded - confirms that underlying demand for our products remains firm, particularly in transformers. The Promoters' equity infusion is a clear endorsement of the Company's prospects and will strengthen our balance sheet and support our operating plans. Our focus now is on converting this order book into sustained performance through the remainder of the year."

Business Overview

Kirloskar Electric Company Limited, incorporated in 1946, manufactures electrical equipment including motors, alternators, generators, transformers, and DG sets. The company serves PSUs, EPCs, and overseas customers, with products used in electric vehicles. The company is listed on both NSE (since March 9, 2010) and BSE (since April 28, 2010).