Kirloskar Pneumatic Company Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Kirloskar Pneumatic Company Ltd trades at ₹720, in a confirmed uptrend and 20 weeks into that stage. That is +0.9% against its own 200-day average. It sits at 0% of a 52-week range of ₹720 to ₹1,998. On relative strength it is currently behind the NIFTY 500 on a trailing-13-week view (11 weeks and counting).

Today the stock is in a confirmed uptrend — week 20 of stage 2, confirmed. At ₹720 it trades +0.9% versus its 200-day average and sits at 0% of its 52-week range (₹720–₹1,998).

Against the market, two honest reads. Cumulative: over the last 10.5 years the stock moved +409% while the NIFTY 500 moved +267% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock is currently behind (11 weeks and counting; last ahead the week of 2026-07-01) — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

Story check

Kirloskar Pneumatic Company Ltd's story is not scored yet against the markers our research file set on 17 May 2026. Where it sits in its own cycle: MID_CYCLE_CONTRACTION_TO_RECOVERY. Still open: Revenue, EBIT margin metric switch, segment reportability, and MENA exports — four separate guidance reversals in FY26 make forward earnings bridges unreliable.

Our read, 17 May 2026. Record order book, PLI-backed new product pipeline, and management credibility on delivery—offset by a pattern of guidance downgrades and opaque segment disclosures.

From the numbers. PE compressed 84% from Sep 2024 peak of 246x (EPS cyclicality driven expansion) to current 39x, which is at the 50th percentile of 10Y history — not cheap, not expensive. The cycle_matrix_label is WATCH_VALUE. EPS has…

From the price. Price stage 2, week 20 — above its 200-day line, relative strength falling.

From the research. Record order book, PLI-backed new product pipeline, and management credibility on delivery—offset by a pattern of guidance downgrades and opaque segment disclosures.

🚨 Where they disagree. PE compressed 84% from Sep 2024 peak of 246x (EPS cyclicality driven expansion) to current 39x, which is at the 50th percentile of 10Y history — not cheap, not expensive. The cycle_matrix_label is WATCH_VALUE. EPS has recovered strongly in Q4 FY26 (Rs 22.14) after a weak Q1-Q3 FY26 (average Rs 5.5). FIIs have increased from 1.14% in Sep 2023 to 8.02% in Dec 2024 — a significant institutional re-rating signal.

What is proven. Record order book, PLI-backed new product pipeline, and management credibility on delivery—offset by a pattern of guidance downgrades and opaque segment disclosures.

What is not proven yet. Revenue, EBIT margin metric switch, segment reportability, and MENA exports — four separate guidance reversals in FY26 make forward earnings bridges unreliable.

Layer 1 read, 22 August 2026 — KEEP. It did not halve — the shares split. Strip two data artifacts and this is a good business on a full price. Kirloskar Pneumatic makes industrial compressors and is having its best year: a record Rs 1,853 crore of orders with Rs 1,353 crore due for delivery this year, profit up 41% over twelve months, and no debt. Two alarming numbers in the file turned out to be false. The 51% price fall is a share split — the company halved the face value on 18 August, so the share count doubled; like for like the price is down about 3%. And the "87% collapse in the valuation multiple" is a vendor correcting a wrong earnings figure (2.66 changed to 16.45 in July 2025), not the market re-pricing anything. What is left is a solid company at 37 times earnings, which the timeline itself calls not cheap, where…

What would change Layer 1’s mind. A second consecutive quarter of single-digit revenue growth with the order book failing to convert — specifically September-quarter revenue below about Rs 420 crore against the Rs 386 crore of a year ago, while the Rs 1,353 crore FY27-executable portion of the order book fails to translate. That would turn six guidance disappointments into a delivery problem rather than a communication problem, which is the distinction the whole P2 rests on. The driver-level kill switch matters too: if the…

Layer 2 read, 22 August 2026 — ADVANCE. Supply is tightening while a large executable order book gives the company room to grow. The order book is ₹1,853 crore, including ₹1,353 crore executable in FY27. Externally, Compressors is labelled IDEAL_TROUGH_SETUP because institutions are ABSENT while sector capex is in SUPPLY_WITHDRAWAL; this outweighs, but does not erase, six prior guidance misses.

What would change Layer 2’s mind. A company filing that cancels a material part of the ₹1,353 crore FY27-executable order book would flip ADVANCE to DROP.

Layer 3 read, 22 August 2026 — BENCH. A strong order book cannot yet outweigh six guidance misses and a full valuation. Timeline R1 is the load-bearing problem: six completed guidance pairs were misses, including a margin-metric switch and weaker MENA delivery. Stream 1 also confirms that Middle East conflict slowed package bookings, so the P2 stays on the bench until reported sales convert the order book.

What would change Layer 3’s mind. Two consecutive quarters that meet management's growth framework without another target change, while the Rs 1,353 Cr FY27-executable order book converts into reported revenue, would flip BENCH to DEPLOY.

The test written in advance. Persistent guidance downgrade pattern — 4 misses in FY26 — Persistent guidance downgrade pattern — 4 misses in FY26 Q1 FY27 revenue vs Rs 450-470 Cr implied 20% run-rate; EBITDA margin vs 18-20% guide by the next result.

The test written in advance. MENA geopolitical disruption — export revenue at risk — MENA geopolitical disruption — export revenue at risk Export revenue as % of total sales in Q1-Q2 FY27; MENA order finalization news by the next result.

The test written in advance. Zephyros AC commercialization risk — Zephyros AC commercialization risk Q1-Q2 FY27 Zephyros unit deployments; PLI scheme commercialization timeline updates by the next result.

Lever 6 · Order-book wins — BUILDING. Rs 1,853 Cr order book at April 1, 2026 — 15% YoY growth, Rs 1,353 Cr (73%) executable in FY27 — gives the strongest revenue visibility in company history. What proves it keeps working: Record Order Book Execution. It stops working if Q1 FY27 revenue vs Rs 450-470 Cr implied 20% run-rate; EBITDA margin vs 18-20% guide.

Lever 7 · Consolidation — BUILDING. Ammonia-based zero-GWP AC package targets Rs 5,000 Cr market; PLI approved for Rs 320 Cr capex; first commercial units deploying Q1 FY27. What proves it keeps working: PLI-Backed Zephyros AC Platform. It stops working if Q1 FY27 revenue vs Rs 450-470 Cr implied 20% run-rate; EBITDA margin vs 18-20% guide.

Lever 1 · Operating leverage — BUILDING. Raw material as % of sales improved 630 bps to 50.06% in Q4 FY26 — backward integration into motors, heat exchangers, sheet metal providing structural COGS tailwind. What proves it keeps working: Operating Leverage + Backward Integration. It stops working if Q1 FY27 revenue vs Rs 450-470 Cr implied 20% run-rate; EBITDA margin vs 18-20% guide.

Lever 2 · Value-added mix — BUILDING. India's only complete centrifugal compressor manufacturer — 130 units in field, 85 commissioned, expanding into pharma/tire/textiles beyond core metals and power. What proves it keeps working: Tesco Centrifugal Compressor Franchise. It stops working if Q1 FY27 revenue vs Rs 450-470 Cr implied 20% run-rate; EBITDA margin vs 18-20% guide.

Sources: our stock research file (17 May 2026) · quarterly results through Jun 26 · the company’s own earnings calls. The story check is re-scored every results season; the record below never changes.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Kirloskar Pneumatic Company Ltd reported ₹303 Cr of revenue in the Jun 26 quarter, +7.4% year on year. That is the 3rd straight quarter of year-on-year growth. Over 10 years it has compounded at 13.4% a year. The last full year, FY26, came in at ₹1,787 Cr. The last four reported quarters add to ₹1,808 Cr.

Why this happened. FY26 order booking exceeded Rs 2,000 Cr for the first time (vs Rs 1,871 Cr in FY25). The order book composition has also improved: zero large package orders that caused quarterly lumps in FY26 means Q-on-Q execution should be more predictable. Equipment business run-rate is Rs 600-700 Cr annually with shorter execution timelines, supporting quarterly revenue stability. The Rs 500 Cr Precision Engineering backlog is additional and not yet formally part of the compression segment reporting.

FY26 revenue came in at ₹1,787 Cr (+9.0% on the year), capping 10 years at 13.4% compound. The latest quarter (Jun 26) printed ₹303 Cr, +7.4% year on year — the 3rd consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +9.0% growth against the decade's 13.4% — the current year is running slower than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +9.7% over the last 4 quarters against +15.5%/yr over the last 8 — rolling over; TTM profit +25.2% vs +36.1%/yr — rolling over.

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Kirloskar Pneumatic Company Ltd's operating margin is 15.0% in the Jun 26 quarter, +3.0 percentage points against the same quarter a year ago. That is the widest this company has ever printed on a full-year basis. Across 16 fiscal years the operating margin has ranged 7.0% to 20.0%. The current quarter sits inside that band.

Why this happened. In-house manufacturing of motors (Saswad plant), heat exchangers, sheet metal components, and forgings (Nashik foundry) is reducing raw material to sales ratio structurally. Q4 FY26 saw 630bps improvement vs prior year. Management targets 20-25% of revenue from equipment business (shorter-cycle, higher-margin) vs large packages. This shift reduces business lumpiness AND improves margins as the equipment mix carries better contribution. New centrifugal compressors (Tesco, A800 frame) and Hydrino oil-free compressors are all fully in-house manufactured, supporting IP ownership and cost advantage.

The latest quarter's operating margin is 15.0%, +3.0 pp against the same quarter a year ago. Across 16 fiscal years the operating margin has ranged 7.0%–20.0%, and FY26's 20.0% is the top of that band — a record year.

Why the margin moved: operating margin went +3.2 pp year on year while gross margin went +5.2 pp — the gain came mostly from the gross line: input costs and pricing.

Worth repeating from the valuation section: cheap against its own history on record margins is not the same thing as cheap — a record margin flatters every ratio built on top of it.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Kirloskar Pneumatic Company Ltd earned ₹33.0 Cr of net profit in the Jun 26 quarter, +32.0% year on year. It is the 3rd consecutive quarter of growth. Full-year FY26 profit was ₹254 Cr. The 10-year compound rate is 21.2%. That is 10.9% of the quarter's revenue. The same quarter a year earlier earned ₹25.0 Cr.

Jun 26 profit was ₹33.0 Cr, +32.0% year on year — the 3rd consecutive quarter of growth. On the full year, FY26 printed ₹254 Cr (+20.4%), and the 10-year compound rate is 21.2%.

Why profit moved: revenue contributed +7.4% and the margin +3.0 pp — the quarter was margin-led: most of the profit growth came from keeping more of each sale.

Pace comparison, last four quarters: profit +22.6% vs revenue +9.0%. Profit is growing faster than sales — fixed costs are being spread over a bigger base, and each extra rupee of revenue drops more to the bottom line.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 106% of Kirloskar Pneumatic Company Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹233 Cr of operating cash against ₹254 Cr of profit. After ₹63.0 Cr of capital spending, ₹170 Cr was left as free cash.

FY26: operating cash of ₹233 Cr against reported profit of ₹254 Cr, leaving free cash of ₹170 Cr after ₹63.0 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 106% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 106%: the cash cycle tightened 21 days between FY21 and FY26 — cash that used to wait in the cycle now reaches the bank sooner.

Router verdict: the bigger cash user is investment — capital spending ran 2.3× depreciation over three years, so the next section's job is to check what that build-out is buying.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Kirloskar Pneumatic Company Ltd's cash conversion cycle runs 90 days in FY26, down from 111 days in FY21. Capital spending ran ₹216 Cr over the last 3 years. At FY26 sales of ₹1,787 Cr each day of that cycle holds about ₹4.9 Cr, so roughly ₹441 Cr sits inside the business at any moment.

FY26: debtors at 107 days, inventory at 89 days — roughly 2.9 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 90 days, tighter than FY21's 111.

The full loop: cash goes out to suppliers and production on day 0; stock waits 89 days to sell; customers pay about 107 days after that; and suppliers themselves are paid at 106 days — netting out to the 90-day cycle.

In money terms: at FY26 sales of ₹1,787 Cr, each day of the cycle holds about ₹4.9 Cr — so the 90-day loop keeps roughly ₹441 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹216 Cr over the last 3 fiscal years against ₹96.0 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹7.0 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the cash is going into capacity, not disappearing into the cycle — the question becomes whether the new capacity earns.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Kirloskar Pneumatic Company Ltd earns a ROCE of 30% in FY26. That is up from a trough of 6% in FY15. Return on invested capital clears the cost of that capital by +19.4 percentage points, so growth here adds value rather than only size. The wiring behind it is 14.2% net margin on 1.02× asset turns.

FY26 ROCE is 30%, recovered from a FY15 trough of 6% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY26): 14.2% net margin × 1.02× asset turns × 1.41× balance-sheet leverage ≈ 20.4% on equity. Margin does its share; leverage is modest — this is an earned return, not a borrowed one.

The capstone test — ROIC − WACC: 31.4% − 12.0% = a +19.4 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. A spread this wide means every rupee reinvested creates more than a rupee of value — the engine compounds.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.

Kirloskar Pneumatic Company Ltd carries total debt of ₹3.0 Cr against shareholder equity of ₹1,260 Cr as of Jun 26, a debt-to-equity of 0.00 — effectively unlevered. On the annual view that ratio went from 0.00 in FY22 to 0.00 in FY26. The returns elsewhere on this page are therefore earned rather than borrowed.

Jun 26: total debt of ₹3.0 Cr against shareholder equity of ₹1,260 Cr — a debt-to-equity of 0.00. On the annual view, debt-to-equity went from 0.00 (FY22) to 0.00 (FY26). The returns on this page are earned, not borrowed.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Foreign institutions added 6.5 points of Kirloskar Pneumatic Company Ltd over 8 quarters, the biggest move on the register. That takes foreign institutions to 10.4% of the company. Domestic institutions moved −5.6 points over the same window, to 26.0%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Foreign institutions: +6.5 points over 8 quarters to 10.4%; Domestic institutions: −5.6 points over 8 quarters to 26.0%; Promoters: −0.1 points over 8 quarters to 38.8%.

Why the register moved: rotation — foreign institutions +6.5 points against domestic institutions −5.6 points over 8 quarters, with promoters holding steady — one class of institutions handing the register to the other, not a verdict change by the people closest to the numbers.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Kirloskar Pneumatic Company Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

Why this happened. The Precision Engineering division leverages KIRLPNU's existing manufacturing capabilities (forgings, castings, precision machining, heat treatment) to serve external customers — a capital-light revenue stream on existing assets. Management committed in January 2026 that it would become a reportable segment from Q1 FY27; the April 2026 call reversed this, saying management will 'avoid talking too much about this business' until sustainability is confirmed. The Rs 500 Cr order book is real, but the segment is de-facto excluded from formal disclosure. Once reportable, it could be a meaningful PAT contributor given the in-house manufacturing leverage.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Kirloskar Pneumatic Company Ltd trades at 35.6× P/E, mid-range by its own standards (38th percentile). Its long-run median P/E is 40.4×, measured across 10.6 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 35.6× is mid-range by its own standards (38th percentile), against a long-run median of 40.4× measured over 10.6 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

One caveat before moving on: margins are the best this company has ever printed — cheap against its own history on record margins is not the same thing as cheap. If profitability mean-reverts, today's multiple is higher than it looks.

Why the multiple sits where it does: over the past year annual EPS moved +21.2% against a −42.9% price move — earnings outran the price, pushing the multiple DOWN its own range.

The price move, decomposed: over 5y, of the +12.6%/yr price move, ~+50.0%/yr came from earnings growth and ~−37.4 pp from the multiple (compressing); over 10y, of the +15.1%/yr price move, ~+22.5%/yr came from earnings growth and ~−7.4 pp from the multiple (compressing). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

Put together: the multiple is unremarkable against its own past, so the story rests on the earnings line underneath it, not the multiple.

What the price assumes This reading works the multiple backwards. It asks one question: what yearly rate of profit growth is a buyer at the market price already paying for? The number is the growth rate that makes eleven years of profit — six years growing, then five fading — add up to that day's market price, once each year is discounted at 11% a year.

Solved at its 27 August 2026 price, Kirloskar Pneumatic Company Ltd was paying for profit growth of about 20.7% a year. Profit itself has compounded 21.2% a year over the past 10 years. Today the market pays 35.6× P/E, the 38th percentile of its own 11-year range.

What the two numbers say together. The multiple is unremarkable against its own past, and the growth the price is paying for is close to what this company has actually delivered.

How to hold this number: it is a reading of one day's price, taken on 27 August 2026, not a running figure — every other number on this page, the multiple included, is read off the live quote as of 11 September 2026. A higher price is paying for more growth and a lower price for less, so it moves whenever the price does, and this page does not restate it between measurements.

Stage: Turning around Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Kirloskar Pneumatic Company Ltd reads as turning around on its fundamental arc. Turning around — profit growth swung from −0.5% at the trough to +25.2%, a 2-quarter improving streak, ROCE lifting at 28.9%. The read is built from 12 quarters across 4 curves, on full evidence.

Why it matters: growth inflections are where re-ratings start — the curves say a turn is forming, so the question becomes whether the next quarters confirm it.

4-Factor Sector Score

48.4/100 — rank 1 of 5 in Compressors · 93% evidence confidence

Kirloskar Pneumatic Company Ltd scores 48.4 out of 100 against the 5 companies it is compared with in Compressors, ranking 1. Acceleration candidate, not a confirmed leader: earnings are strong but sector-relative strength is -51.5% and the one-year return is -43.4%. Do not upgrade until sector-relative strength is above zero and another reported period confirms growth.

The four contributions add to the total exactly: 26.7 + 14 + 5.9 + 1.8 = 48.4. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Said versus delivered

What Kirloskar Pneumatic Company Ltd's management promised, set against what actually arrived — 4 tracked promises on the record. Read straight from the company’s own earnings calls. A promise that slipped stays on this page after it is met.

🚨 Forward Margin Target Downgraded · 27 April 2026. In the January 2026 call, both the MD and CFO guided an EBIT margin of 20% as the company's sustainable forward target for FY27, presenting it as a recovery to historical levels. The April 2026 call resets this to EBITDA of 18–20% as sustainable, which, given D&A running at ~1.7% of revenue, implies a forward EBIT of approximately 16–18% — a material step-down from the 20% EBIT commitment made just one quarter prior. No adequate explanation is offered for why the margin level actually achieved in FY26 (~20% EBIT) is no longer considered attainable going forward. Earlier call (Jan 2026): “We expect that we will get back to our targeted growth rate of 20% on the top line and an EBIT margin of 20% going forward.” Later call (Apr 2026): “A margin expectation of 18% to 20% EBITDA would be more sustainable. While we always strive for higher margins, we must also consider the impact on growth and find a balance.”

Revenue Guidance Reversal · 23 January 2026. In the July 2025 call, management guided for sales 'very near 2,000' crores, and in October 2025, explicitly stated they were 'not calling it down at all' when asked about this target. However, in the latest January 2026 call, they lowered the full-year guidance to 1,800-1,850 crores, contradictory to the confidence expressed just one quarter prior. Later call (Jan 2026): “We expect to close the year with sales of about 1,800 to 1,850 crores... growth of about 12-14% on the top line.”

Contradiction on Order Finalization · 23 January 2026. During the October 2025 call, management claimed they had 'finalized' large orders and were merely waiting for signatures to book them in Q3. In direct contradiction, the January 2026 call admits that 'practically no big orders' were finalized throughout the entire calendar year and the current order book contains 'no large package orders.' Earlier call (Oct 2025): “I know that there are some big orders that we have finalized... We will book these orders in Q3. We also expect that some of the delayed decisions will now be cleared.” Later call (Jan 2026): “Last year, we had nearly 600 crores of large package orders in this. This year, however, we have no large package orders... throughout last year, there were practically no big orders being finalized in this space.”

🚨 Execution & Uncertainty Narrative · 23 January 2026. In October 2025, management assured analysts that uncertainty was 'digested' and they had specific packages under execution to hit Q3 targets. The January 2026 call contradicts this, explaining a Q3 miss due to the exact same issue—packages not being cleared for dispatch—demonstrating that the uncertainty was not actually contained. Earlier call (Oct 2025): “Most of all the uncertainty... has been digested... I have packages and large orders under execution, which should get me that number [Q3 target].” Later call (Jan 2026): “While we internally met most of our manufacturing targets, we could not get this to translate into sales as some of the larger packages were not cleared for dispatch... This meant lower sales and a higher inventory.”

Every quote above is taken word for word from the company’s own earnings calls.

Frequently asked questions