Kilburn Engineering Ltd Q2 FY26 Earnings Analysis

- Kilburn Engineering targets a 50% revenue growth for FY26, maintaining the strong growth rate seen in Q1FY26. - For the next two years, the company aims for at least 20%-25% growth annually. - The expansion of existing plants, including a brownfield expansion at Saravali with a CapEx of around ₹30 crores, is expected to increase capacity and support growth. - New plant operations are expected to start by FY27, contributing significantly to growth from that year onwards. - Continued bidding for big-ticket orders (up to ₹125 crores) and a healthy pipeline of ₹4000+ crores in enquiries with a win rate of 20%-25% support the growth outlook. - The company focuses on scaling profitable execution and expanding export orders, which now account for 25%-30% of order intake. - Collaboration and synergies with subsidiaries (M E Energy, Monga Strayfield) aim to open new sector opportunities enhancing future sales.

- Kilburn Engineering targets a strong revenue growth of 50% for FY26, maintaining this from the last quarter's performance. - For the next two years, the company aims for a 20%-25% annual growth rate, supported by investments in new plants and potential CapEx in subsidiaries like M E Energy. - Margin guidance is maintained between 22% to 23%, with current margins around 25% due to favorable product mix and scaled operations; a sustainable margin expansion is expected as operations scale up. - Order pipeline is robust, with enquiries over ₹4000 crore and a win rate of 20%-25%, fueling future earnings growth. - Brownfield expansion at Saravali with ₹30 crore CapEx is expected to be operational by FY27, contributing significantly to capacity and output. - Growing export orders (25%-30% of order intake) and diversification into sectors like nuclear energy add to positive outlook for earnings and EPS.

- Brownfield expansion at Saravali plant with a CapEx of around ₹30 crores, expected to complete by March 2026. This will add ~5000 sq meters of working area, targeting ₹100-150 crores additional output depending on product mix. (Pages 3, 8, 11, 12, 16) - Potential phase two investment at M E Energy, estimated between ₹7 to ₹12 crores, with final numbers to be confirmed. (Page 9) - No current acquisitions planned; focus is on integrating recently acquired entities (M E Energy and Monga Strayfield) and leveraging synergies. (Page 12) - The CapEx aims to support the growth target of 20-25% over the next two years and to fully utilize capacity by FY27. (Pages 11, 12) - Strategic emphasis on scaling operations profitably and bidding larger tickets, backed by capacity expansion. (Pages 9, 12, 16) - Monga Strayfield and M E Energy collaborations focus on synergies rather than immediate CapEx. (Pages 5, 6)

- No explicit mention of any current or upcoming fundraising through debt or equity in the transcript. - CapEx of around ₹30 crores approved for brownfield expansion at Saravali, with possible additional investments of ₹7-12 crores in M E Energy. - Funding for CapEx appears to be from internal resources or board approval; no reference to external fundraising. - Management stated no acquisitions currently on the table; focus is on integration and organic growth. - No indications of planned equity or debt issuance shared during the Q&A or management remarks.

- Kilburn Engineering has a consolidated enquiry pipeline of over ₹4,000 crores. - The current order backlog at the end of Q1 FY26 stands at ₹447 crores. - Since 1st July 2025, new LOIs and orders worth ₹98 crores have been received. - The company's win/strike rate on inquiries is between 20% to 25%. - The order intake includes large-ticket bids, some as big as ₹100-125 crores. - Execution timelines for orders vary from 3-4 months for smaller ones up to 12 months for larger greenfield projects. - Orders span multiple sectors including nuclear, fertilizer, and industrial applications like air preheaters and titanium products. - Brownfield expansion with a CapEx of ₹30 crores is planned to support growth and capacity utilization by March 2026.