Kirloskar Brothers Ltd: Why Is It Outperforming Nifty 500?

Kirloskar Brothers Ltd's latest quarterly results (Mar 2026) show

• PAT Growth YoY: -18.8% (inflecting downward)
• Revenue Growth YoY: +10.5%
• Operating Margin: 13.0% (contracting)

Kirloskar Brothers Ltd's profit is declining with an inflecting downward trend.

• PAT Growth YoY: -18.8% (latest quarter)
• PAT Growth QoQ: -10.4% (sequential)
• 3-Year PAT CAGR: +16.9%
• Trend: Inflecting downward — consistent growth pattern

Kirloskar Brothers Ltd's revenue growth trend is turning around (inflection up).

• Revenue Growth YoY: +10.5%
• Revenue Growth QoQ: +26.8% (sequential)
• 3-Year Revenue CAGR: +6.8%

Kirloskar Brothers Ltd's operating margin is contracting.

• Current OPM: 13.0%
• OPM Change YoY: -2.0% basis points
• OPM Change QoQ: 0.0% basis points

Kirloskar Brothers Ltd's long-term compounding rates

• 3-Year Profit CAGR: +16.9%
• 3-Year Revenue CAGR: +6.8%

Kirloskar Brothers Ltd's earnings growth is inflecting downward with mixed signals on a sequential basis.

• YoY Acceleration: -24.7% bps
• Sequential Acceleration: -60.4% bps
• Margin Warning: Operating margins are under pressure

Kirloskar Brothers Ltd's trailing twelve month (TTM) performance

• TTM PAT: ₹377 Cr
• TTM PAT Growth: -10.0% YoY
• TTM Revenue: ₹5,000 Cr
• TTM Revenue Growth: +1.0% YoY
• TTM Operating Margin: 12.1%

Kirloskar Brothers Ltd appears significantly overvalued based on our fair value analysis.

• Valuation Signal: Significantly Overvalued
• Current PE: 39.7x
• Price-to-Book: 6.5x

Kirloskar Brothers Ltd's current PE ratio is 39.7x.

• Current PE: 39.7x
• Market Cap: 16.0K Cr
• Dividend Yield: 0.35%

Kirloskar Brothers Ltd's current PE is 39.7x.

• Current PE: 39.7x
• Valuation Assessment: Significantly Overvalued

Kirloskar Brothers Ltd's price-to-book ratio is 6.5x.

• Price-to-Book (P/B): 6.5x
• Book Value per Share: ₹310
• Current Price: ₹2018

Kirloskar Brothers Ltd is rated Weak with a fundamental score of 35.26/100. This score is calculated from objective financial metrics

• Revenue Growth YoY: +10.5% (10% weight)
• PAT Growth YoY: -18.8% (10% weight)
• PAT Growth QoQ: -10.4% (10% weight)
• Margins contracting (10% weight)

Kirloskar Brothers Ltd has a debt-to-equity ratio of N/A.

• Total Debt: ₹250 Cr

Kirloskar Brothers Ltd's return ratios over recent years

• FY2024: ROCE 27.0%
• FY2025: ROCE 28.0%
• FY2026: ROCE 21.0%

Kirloskar Brothers Ltd's operating cash flow is positive (FY2026).

• Cash from Operations (CFO): ₹334 Cr
• Free Cash Flow (FCF): ₹125 Cr
• CFO/PAT Ratio: 89% (strong cash conversion)

Kirloskar Brothers Ltd's current dividend yield is 0.35%.

• Dividend Yield: 0.35%
• Current Price: ₹2018

Kirloskar Brothers Ltd's shareholding pattern (Mar 2026)

• Promoters: 66.0%
• FII (Foreign): 6.2%
• DII (Domestic): 10.4%
• Public: 17.4%

Kirloskar Brothers Ltd's promoter holding has remained stable recently.

• Current Promoter Holding: 66.0% (Mar 2026)
• Previous Quarter: 66.0% (Dec 2025)
• Change: 0.00% (stable)

Kirloskar Brothers Ltd has been outperforming Nifty 500 for 1 consecutive week, indicating early-stage outperformance.

Kirloskar Brothers Ltd is a new entry this week — it just started outperforming Nifty 500. New entries are worth monitoring for follow-through.

Based on quantitative research signals, here is why Kirloskar Brothers Ltd may be worth studying

• Cash flow is positive — CFO ₹334 Cr

Kirloskar Brothers Ltd investment thesis summary:

Kirloskar Brothers Ltd's forward outlook based on current data signals

• Earnings Trend: inflecting downward
• Revenue Trend: turning around (inflection up)
• Margin Trend: contracting
• Valuation: Significantly Overvalued