Kirloskar Pneumatic shares slide 4% despite strong Q1 profit growth

Kirloskar Pneumatic Company Ltd (KPCL) reported a 24 per cent year-on-year jump in Profit Before Tax to ₹46 crore for the first quarter of FY27, even as its stock fell sharply on Tuesday following the results announcement.

Revenue from operations grew 10 per cent year-on-year to ₹300 crore in Q1 FY27, up from ₹272 crore in the same period last year. EBITDA rose 23 per cent to ₹54 crore, with margins expanding to 17.5 per cent from 15.7 per cent.

Profit After Tax came in at ₹34 crore, a 21 per cent increase, with PAT margins improving to 11 per cent from 10 per cent.

On a consolidated basis, the numbers were stronger. Revenue grew 7 per cent to ₹303 crore, while PAT surged 32 per cent to ₹33 crore. Consolidated EBITDA margins expanded nearly 300 basis points to 17.3 per cent.

Despite the earnings beat, KPCL shares fell 3.92 per cent to ₹1,652.80 on the NSE by early afternoon, touching an intraday low of ₹1,575.60. The stock has shed over 15 per cent in the past month and is trading well below its 52-week high of ₹2,197.10 hit in June 2026.

The company’s order book stood at ₹1,853 crore as of July 1, 2026, marginally lower than ₹1,863 crore at the start of the fiscal year. The compression business remains the dominant revenue contributor at roughly 94 per cent of total revenue.

During the quarter, KPCL launched the A-800 centrifugal compressor under its Tezcatlipoca range and introduced “Tonalli,” a compact biogas solution targeting factories, hotels, and restaurants generating 100 to 250 kg of food waste daily. Credit rating agency CRISIL upgraded the company’s rating to AA from AA(-) with a stable outlook.

Managing Director Aman Kirloskar described revenue growth as modest but said the company remains focused on operational efficiency and long-term sustainable growth.