Q1 FY 26 highlights
Business Overview
• 48% growth in revenue YoY.
• 447 cr order book at consol level. 98 cr order inflow since 1st July.
• 4000 cr enquiry pipeline.
o My notes - In Q4, this was at roughly 3000+ cr at consol level. So good growth sequentially. Had spoken about receiving bigger sized inquiries in the previous call – resulting in a larger sized pipeline
• Capex - Brownfield
o 30 cr capacity expansion in Saravali unit; proposed capacity addition of 15 to 20%;
o Timeline: March 2026. Expected to add roughly 100 to 150 cr.
• EBITDA margin at 26% vs 22% in Q1 FY 25.
o Scaled up operations – which has resulted in better margin.
o Not driven by any particular sector. Sectoral mix keeps changing. Can expect 22 to 23% margin going forward.
Second consecutive quarter of 25%+ margin. This is something to be tracked. While they have guided for 22-23% - they have alluded to, on earlier calls that -this is considering the practice of using M.E. Energy’s unit at times, to do job works for Kilburn at a lower margin and vice versa.
Segment deep dive
• Order inflow from Nuclear power
o Nuclear has been revived by Govt recently (was dormant for a while). Kilburn has pioneered cooling system for nuclear.
o Received an order from L&T.
o Very few players which make the product which Kilburn does..
• OCP Morocco order
o Have bid for a couple of more projects at OCP. In advanced stage of discussion.
o Orders are in similar range as the recent order won. Margin profile also higher
• ME energy – recd orders in compressor biogas segment, sewage water treatment, export orders from Africa, etc
• Multiple inquiries from fertilizer segment. Received a large order from Coromandel. Expecting good order inflow from Fertilizers sector over next 12 to 18 months
• Completed one project for Reliance, in Titanium business. Received multiple inquiries in Titanium business.
Tariff buzz
• End user industries have a high domestic consumption as well
• Large part of order intake in domestic in nature. Customers like Reliance, Navin Fluorine, etc
• Receiving inquiries from Africa, Europe, etc.
• Don’t see any concern on demand front.
Key strength –
• Ability to provide a large bouquet of solutions to customers – while other companies can only offer one or two type of dryers.
• Strong relationship with customers running in decades.
• Presence across multiple sectors. So in a way insulates from the risk of a particular sector experiencing headwinds
• Recent Acquisitions have helped complement solution offerings. And helped in transforming to a one stop shop, offering waste heat recovery solutions and a range of dryers
Outlook and Guidance
• Not looking at any more acquisitions in near future. Synergies with Monga are in place
• Guidance of 50% growth in revenue in FY 26 ; CAGR of 25% in the following years.
My notes - Inquiry Pipeline at 4000+ cr, going by the current run rate- should have inquiries worth 4600-5000 cr by end of FY. Assuming some of it will get converted & executed in FY 26 and then fresh inquiries flowing in, in early FY 27.. Even if they were to convert 20% of this, that would mean a topline of roughly 920-1000 cr for FY 27, which would again be a healthy growth
Disc: Invested from lower levels.
