Kirloskar Pneumatic Company Ltd. share price target

The management has guided for revenue and earnings to grow by 20%+ with EBITDA margins of 18-20%. FY27 execution to improve driven by higher short-cycle...

We interacted with the management of Kirloskar Pneumatic Company (KKPC), which outlined a steady growth trajectory, with FY26 revenue guided at ~Rs18bn and FY27 at Rs21bn while maintaining EBIT margins at ~20% despite macro uncertainties. Growth is expected to be driven by air compressors and the newly introduced Precision Engineering segment, which is likely to contribute ~18% of revenue in FY27 (~Rs4bn), supported by strong order inflows, short execution cycles (10-12 weeks) and efficient asset utilization without incremental capex. Air compressors remain the core growth engine, led by scaling of indigenously developed Tezcatlipoca, capacity ramp-up and...

Kirloskar Pneumatic (KKPC) reported a soft revenue growth of 2.3% YoY, while EBITDA margin contracted by 244bps YoY to 11.8%. During Q1, the company faced lower offtake and execution delays due to geopolitical uncertainties and supply chain disruptions. However, management remains optimistic about the long-term growth prospects amid short-term challenges. In the Air...

Management targets ~Rs20bn revenue and ~18-20% EBITDA margin for FY26 and expect ~20% revenue CAGR over the next two years. Kirloskar Pneumatic (KKPC) reported a healthy quarter registering 20.7% YoY revenue growth while maintaining an 18.5% EBITDA margin. During the year, KKPC gained market share in its Air compression segment aided by stronger adoption and demand for Tezcatlipoca compressors while the Refrigeration compression segment remained a growth driver with traction from dairy, food...

Tezcatlipoca A-800, to be launched soon, will replace oil-free screw air compressors, further gaining market share in Air Compression We visited Kirloskar Pneumatic's Saswad and Hadapsar plants and engaged with top management to discuss the current demand environment and future outlook. The Saswad plant, which primarily manufactures gas and refrigeration compressors, contributes ~70% to KKPC's total revenue. The Gas Compression business remains weak due to elevated gas prices; however, the management...

KPCL manufactures air, refrigeration and gas compressors and systems that account for 95% of sales.