KSB Ltd Q1 FY27 Results Analysis: PAT Plunges 18.75%, EBITDA Margin Compresses 184 bps

KSB Ltd's Q1 FY27 numbers came in soft, with revenue of Rs. 690.70 Cr (+3.60% YoY) and PAT growth of -18.75% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

KSB's Q1 FY27 results showed modest revenue growth of 3.6% YoY, but profitability declined sharply with PAT down 18.75% and EBITDA margin contracting 184 bps. The valves segment experienced a severe margin collapse, and working capital absorption turned free cash flow deeply negative. The company's performance lagged the strong IIP capital-goods momentum, indicating potential market share loss. No management guidance was provided in the filing.

Key Investment Insights

Key Positives

• Revenue grew 3.6% YoY to Rs.690.70 Cr.
• COGS ratio improved 56 bps YoY to 54.70%.
• Pumps segment revenue grew 5.41% YoY with margin holding steady at 11.19%.
• Sequential revenue growth of 14.87% QoQ.
• Associate profit share increased 13.51% YoY to Rs.4.20 Cr.

Risk Factors

• Consolidated PAT declined 18.75% YoY to Rs.57.20 Cr.
• EBITDA margin contracted 184 bps YoY to 12.42%.
• Valves segment EBIT margin collapsed from 15.31% to 4.07% YoY.
• Operating cash flow was only Rs.15.50 Cr for H1 FY27, with CFO/PAT ratio of 0.16x.
• Inventories surged 22.25% since Dec 2025, absorbing Rs.174.90 Cr in working capital.
• Employee costs grew 15.86% YoY, outpacing revenue growth by a wide margin.