KSB Q4 FY26 Results Analysis: PAT Falls 23%, Revenue Growth Misses Guidance

KSB Ltd reported Q4 FY26 numbers with revenue of Rs. 601.30 Cr (+1.00% YoY) and PAT growth of -22.90% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

KSB's Q1 CY26 results were a significant disappointment, with revenue growth of only 1.0% missing management's minimum double-digit guidance and EBITDA margin collapsing to 9.0% versus the 13-14% target. Cost pressures from surging material costs and severe margin compression in the Valves segment drove a 22.9% YoY decline in PAT.

Key Investment Insights

Key Positives

• Pumps segment revenue grew 5.4% YoY to INR 4,995 million
• Finance costs remain negligible at INR 6 million, down 25% YoY
• Effective tax rate stable at ~25.2%

Risk Factors

• Revenue growth of only 1.0% YoY missed management's minimum double-digit growth guidance
• EBITDA margin collapsed to 9.0% from 12.0% YoY, missing the 13-14% guidance
• Cost of materials consumed surged 17.1% YoY against flat revenue growth
• Valves segment revenue declined 16.3% YoY and EBIT margin halved from 15.8% to 8.2%
• PAT declined 22.9% YoY as expenses grew 4.3% versus 1.0% revenue growth
• Pumps segment grew only 5.4% YoY versus management's 15-20% full-year target