Management Or Ownership Change
Expected: Feb 2026MEDIUM confidence
What: CEO Appointment: Janaki Kirloskar
Kirloskar Electric Company Ltd: Why Is It Outperforming Nifty 500?
ActiveRS +46.3%Average4w Streak
In , Kirloskar Electric Company Ltd (Capital Goods - Electric General) is outperforming Nifty 500 with +46.3% relative strength. Fundamentals: Average. On a 4-week streak.
Kirloskar Electric Company Ltd Key Facts
- PE Ratio
- 44.8x
- Market Cap
- ₹830 Cr
- PAT Growth YoY
- +619%
- Revenue Growth YoY
- +26%
- OPM
- 10.4%
- RS vs Nifty 500
- +46.3%
PE: Near TroughFalling Knife
What's Happening
🔻Earnings declining and PE falling — fundamentals deteriorating
💪Debt reduced 10% YoY — balance sheet strengthening
💰Trading 94% above estimated fair value — significant premium
Earnings Acceleration Triggers
1. Management Or Ownership Change
Feb 2026MEDIUM
2. Interest Cost Reduction Deleveraging
OngoingMEDIUM
Key Risks
1. Pending SLP in Supreme Court regarding resale tax penalty of ₹5
MEDIUM2. Volatility in copper, iron, and steel prices which account for >70% of productio
HIGH3. SEBI directive to disclose 2009 Deed of Family Settlement (DFS) challenged in co
MEDIUMSector-Specific Signals
Operating Margin4.98%Increased
Interest Coverage RatioLowNot Given
Raw Material Cost % of Production70%Stable
Net Worth₹-231 CrImproving
Key Numbers
PAT Growth YoY
+619%
Inflection Up
Revenue YoY
+26%
Inflection Up
Operating Margin
10.4%
+565 bps YoY
PE Ratio
44.8
Current Price
₹125
Fundamental Score
48/100
Average
3Y PAT CAGR
-50%
Market Cap
830 Cr
Valuation
Significantly Overvalued12-Week Performance
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
12 weeks agoThis week
Why Are Kirloskar Electric Company Ltd's Earnings Accelerating?
Based on Q3 FY26 (web) earnings • Updated Apr 19, 2026
Interest Cost Reduction Deleveraging
Expected: OngoingMEDIUM confidence
What: Debt reduction: Post land sale
What Are the Key Risks for Kirloskar Electric Company Ltd?
Earnings deceleration risks from management commentary
Pending SLP in Supreme Court regarding resale tax penalty of ₹5
MEDIUMTrigger: Pending SLP in Supreme Court regarding resale tax penalty of ₹5.27 Cr.
Impact: PAT impact: ₹5.27 Cr
Management view: Company believes outcome will be favorable and no provision is made.
Monitor: litigation
Volatility in copper, iron, and steel prices which account for >70% of productio
HIGHTrigger: Volatility in copper, iron, and steel prices which account for >70% of production costs.
Management view: Not Given
Monitor: commodity
SEBI directive to disclose 2009 Deed of Family Settlement (DFS) challenged in co
MEDIUMTrigger: SEBI directive to disclose 2009 Deed of Family Settlement (DFS) challenged in court.
Management view: Challenging SEBI directive in Bombay High Court.
Monitor: regulatory
What Did Kirloskar Electric Company Ltd Report This Quarter?
Headline numbers from the latest earnings call
Revenue
₹155.10 Cr
YoY +27.9%QoQ +1.2%
Revenue growth was driven by a notable increase in operational activities compared to the previous year.
EBITDA
₹7.72 Cr
YoY +34.49%Margin 4.98%
Operating profit improved significantly on a YoY basis despite a slight decline in efficiency metrics noted by some analysts.
PAT
₹4.10 Cr
YoY +619.3%QoQ -58.92%
The sharp YoY PAT increase is off a low base, while the QoQ drop is attributed to higher tax expenses and lower non-operating income.
Other Highlights
• Tax expense of ₹0.21 crores recorded in Q3FY26 vs zero in previous quarters.
• EPS stood at ₹0.62 for the quarter compared to ₹0.09 in Q3FY25.
• Total expenses increased 18.2% YoY to ₹142.70 crores.
What Sector Metrics Matter for Kirloskar Electric Company Ltd?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Operating Margin
4.98%
YoY IncreasedQoQ Decreased
Why: Operating profit grew 34.49% YoY, but margins remain under pressure due to high raw material costs.
Interest Coverage Ratio
Low
YoY Not GivenQoQ Deteriorated
Why: Company's ability to manage interest payments has deteriorated, with the operating profit to interest ratio at its lowest in five quarters.
Raw Material Cost % of Production
70%
YoY StableQoQ Not Given
Why: High dependence on volatile commodities like copper and steel.
Net Worth
₹-231 Cr
YoY ImprovingQoQ Not Given
Why: Historical losses led to erosion, but land sales and recent profits are adding accruals.
How Fast Is Kirloskar Electric Company Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +26% | +18% | Inflection Up |
| PAT (Net Profit) | +619% | -50% | Inflection Up |
| OPM | 10.4% | +565 bps | Volatile |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 19, 2026.
Other Top Capital Goods - Electric General Stocks Beating Nifty 500
Frequently Asked Questions: Kirloskar Electric Company Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What were Kirloskar Electric Company Ltd's latest quarterly results?
Kirloskar Electric Company Ltd's latest quarterly results (Dec 2025) show
- PAT Growth YoY: +619.3% (turning around (inflection up))
- Revenue Growth YoY: +26.4%
- Operating Margin: 10.4% (volatile)
Is Kirloskar Electric Company Ltd's profit growing or declining?
Kirloskar Electric Company Ltd's profit is growing with an turning around (inflection up) trend.
- PAT Growth YoY: +619.3% (latest quarter)
- PAT Growth QoQ: -58.9% (sequential)
- 3-Year PAT CAGR: -50.0%
- Trend: Turning around (inflection up) — consistent growth pattern
What is Kirloskar Electric Company Ltd's revenue growth trend?
Kirloskar Electric Company Ltd's revenue growth trend is turning around (inflection up).
- Revenue Growth YoY: +26.4%
- Revenue Growth QoQ: +6.6% (sequential)
- 3-Year Revenue CAGR: +17.5%
How is Kirloskar Electric Company Ltd's operating margin trending?
Kirloskar Electric Company Ltd's operating margin is volatile.
- Current OPM: 10.4%
- OPM Change YoY: +5.7% basis points
- OPM Change QoQ: +5.9% basis points
What is Kirloskar Electric Company Ltd's 3-year profit and revenue CAGR?
Kirloskar Electric Company Ltd's long-term compounding rates
- 3-Year Profit CAGR: -50.0%
- 3-Year Revenue CAGR: +17.5%
Is Kirloskar Electric Company Ltd's growth accelerating or decelerating?
Kirloskar Electric Company Ltd's earnings growth is turning around (inflection up) with mixed signals on a sequential basis.
- YoY Acceleration: +3.9% bps
- Sequential Acceleration: -100.0% bps
What is Kirloskar Electric Company Ltd's trailing twelve month (TTM) performance?
Kirloskar Electric Company Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹11 Cr
- TTM PAT Growth: -18.1% YoY
- TTM Revenue: ₹555 Cr
- TTM Revenue Growth: -4.9% YoY
- TTM Operating Margin: 5.4%
Is Kirloskar Electric Company Ltd overvalued or undervalued?
Kirloskar Electric Company Ltd appears significantly overvalued based on our fair value analysis.
- Valuation Signal: Significantly Overvalued
- Current PE: 44.8x
- Price-to-Book: 6.7x
What is Kirloskar Electric Company Ltd's current PE ratio?
Kirloskar Electric Company Ltd's current PE ratio is 44.8x.
- Current PE: 44.8x
- Market Cap: 830 Cr
How does Kirloskar Electric Company Ltd's valuation compare to its history?
Kirloskar Electric Company Ltd's current PE is 44.8x.
- Current PE: 44.8x
- Valuation Assessment: Significantly Overvalued
What is Kirloskar Electric Company Ltd's price-to-book ratio?
Kirloskar Electric Company Ltd's price-to-book ratio is 6.7x.
- Price-to-Book (P/B): 6.7x
- Book Value per Share: ₹19
- Current Price: ₹125
Is Kirloskar Electric Company Ltd a fundamentally strong company?
Kirloskar Electric Company Ltd is rated Average with a fundamental score of 47.88/100. This score is calculated from objective financial metrics
- Revenue Growth YoY: +26.4% (10% weight)
- PAT Growth YoY: +619.3% (10% weight)
- PAT Growth QoQ: -58.9% (10% weight)
- Margins stable (10% weight)
Is Kirloskar Electric Company Ltd debt free?
Kirloskar Electric Company Ltd has a debt-to-equity ratio of N/A.
- Total Debt: ₹116 Cr
What is Kirloskar Electric Company Ltd's return on equity (ROE) and ROCE?
Kirloskar Electric Company Ltd's return ratios over recent years
- FY2023: ROCE 21.0%
- FY2024: ROCE 18.0%
- FY2025: ROCE 8.0%
Is Kirloskar Electric Company Ltd's cash flow positive?
Kirloskar Electric Company Ltd's operating cash flow is positive (FY2025).
- Cash from Operations (CFO): ₹36 Cr
- Free Cash Flow (FCF): ₹35 Cr
- CFO/PAT Ratio: 900% (strong cash conversion)
What is Kirloskar Electric Company Ltd's dividend yield?
Kirloskar Electric Company Ltd currently does not pay a significant dividend (yield 0.00%).
- Dividend Yield: 0.00%
- Current Price: ₹125
Who holds Kirloskar Electric Company Ltd shares — promoters, FII, DII?
Kirloskar Electric Company Ltd's shareholding pattern (Mar 2026)
- Promoters: 49.7%
- FII (Foreign): 4.0%
- DII (Domestic): 1.2%
- Public: 45.0%
Is promoter holding increasing or decreasing in Kirloskar Electric Company Ltd?
Kirloskar Electric Company Ltd's promoter holding has increased recently.
- Current Promoter Holding: 49.7% (Mar 2026)
- Previous Quarter: 49.6% (Dec 2025)
- Change: +0.14% (increasing — positive signal)
How long has Kirloskar Electric Company Ltd been outperforming Nifty 500?
Kirloskar Electric Company Ltd has been outperforming Nifty 500 for 4 consecutive weeks, indicating building momentum.
Is Kirloskar Electric Company Ltd a new momentum entry or an established outperformer?
Kirloskar Electric Company Ltd is an established outperformer with 4 weeks of consecutive Nifty 500 outperformance.
What are the growth catalysts for Kirloskar Electric Company Ltd?
Kirloskar Electric Company Ltd has 2 key growth catalysts identified from recent earnings analysis
- Management Or Ownership Change — New leadership may drive operational efficiency and strategic refocusing.
- Interest Cost Reduction Deleveraging — Reduction in debt levels improves liquidity and reduces interest burden.
What are the key risks in Kirloskar Electric Company Ltd?
Kirloskar Electric Company Ltd has 3 key risks worth monitoring
- [MEDIUM] Pending SLP in Supreme Court regarding resale tax penalty of ₹5 — Pending SLP in Supreme Court regarding resale tax penalty of ₹5.27 Cr.
- [HIGH] Volatility in copper, iron, and steel prices which account for >70% of productio — Volatility in copper, iron, and steel prices which account for >70% of production costs.
- [MEDIUM] SEBI directive to disclose 2009 Deed of Family Settlement (DFS) challenged in co — SEBI directive to disclose 2009 Deed of Family Settlement (DFS) challenged in court.
What is Kirloskar Electric Company Ltd's management guidance for growth?
Kirloskar Electric Company Ltd's management has provided the following forward guidance
- Revenue outlook: Not Given
- Margin outlook: Not Given
What sector-specific metrics matter most for Kirloskar Electric Company Ltd?
Kirloskar Electric Company Ltd's most important sub-sector-specific KPIs from the latest concall
- Operating Margin: 4.98% (YoY Increased) (QoQ Decreased) — Operating profit grew 34.49% YoY, but margins remain under pressure due to high raw material costs.
- Interest Coverage Ratio: Low (YoY Not Given) (QoQ Deteriorated) — Company's ability to manage interest payments has deteriorated, with the operating profit to interest ratio at its lowest in five quarters.
- Raw Material Cost % of Production: 70% (YoY Stable) (QoQ Not Given) — High dependence on volatile commodities like copper and steel.
- Net Worth: ₹-231 Cr (YoY Improving) (QoQ Not Given) — Historical losses led to erosion, but land sales and recent profits are adding accruals.
Is Kirloskar Electric Company Ltd worth studying for long term investment?
Based on quantitative research signals, here is why Kirloskar Electric Company Ltd may be worth studying
- Earnings growing at +619.3% YoY
- Cash flow is positive — CFO ₹36 Cr
What is the investment thesis for Kirloskar Electric Company Ltd?
Kirloskar Electric Company Ltd investment thesis summary:
Research Signals (Bull Case)
- Revenue growing at +26.4% YoY
- Growth catalyst: Management Or Ownership Change
Risk Factors (Bear Case)
- Appears significantly overvalued
- Key risk: Pending SLP in Supreme Court regarding resale tax penalty of ₹5
What is the future outlook for Kirloskar Electric Company Ltd?
Kirloskar Electric Company Ltd's forward outlook based on current data signals
- Earnings Trend: turning around (inflection up)
- Revenue Trend: turning around (inflection up)
- Margin Trend: volatile
- Valuation: Significantly Overvalued
- Key Catalyst: Management Or Ownership Change
- Key Risk: Pending SLP in Supreme Court regarding resale tax penalty of ₹5
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.