KSB Limited reviewed its strong performance at the Institutional Investors Meet held on March 17, 2026. Key highlights included a 17% CAGR in both revenue and EBITDA, driven significantly by new product introductions across water/wastewater, firefighting, and solar segments. The company confirmed a robust order book of ₹25,848 million (including nuclear), and discussed strategic focus areas like nuclear pump localization, export growth, and capitalizing on large infrastructure demands.
KSB Institutional Investors Meet Summary
KSB Limited provided an update on its business trajectory, following intimations on March 11 and 17, 2026. The meeting featured key management, including Mr. Rajeev Jain (Managing Director) and Mr. Mahesh Bhave (CFO). The presentation opened with a cautionary statement regarding forward-looking projections.
Historical Snapshot and Setup
KSB India was established in 1960, with major milestones including the start of the foundry in 1974, acquisition of the PPD energy division (now SupremeServ) in 1978, and the start of the Water Pumps division in 1994. The company currently operates six manufacturing plants and six service stations across India.
Financial Performance Overview (CY 2025)
The company reported strong, steady financial performance for the year ending December 31, 2025:
- Revenue from operations grew to ₹26,957 million (from ₹25,331 million), reflecting a 17% CAGR.
- EBITDA grew from ₹350 Cr to ₹387 Cr, also showing a 17% CAGR.
- Profit before tax increased from ₹322 Cr to ₹352 Cr.
- Profit after tax showed a 22% CAGR.
- EPS stood at 15.2, and ROCE was reported at 24 (excluding labor impact).
- Dividend declared was 220%.
Order Book and Segment Dynamics
The order intake trajectory shows a 14% CAGR, with an average monthly intake of around ₹249 Cr for 2025. The current order book stands robustly at ₹25,848 million as of December 2025, with nuclear orders accounting for ₹12,816 million.
Order Intake Bifurcation (2025 Chart)
- Standard Pump: 48%
- Engineered Pumps: 19%
- SupremeServ: 15%
- Valves: 18%
Exports recorded a 22% CAGR, constituting 17% of total revenue in 2025. The solar business demonstrated exceptional growth with a 112% order intake CAGR.
Growth Drivers and New Segments
Key Growth Sectors
Domestic demand drivers for the current year are primarily in Energy (thermal power plants), Infrastructure (water/wastewater treatment projects), and Building Services (metros, hospitals). Solar is expected to grow based on KUSUM 2.0 scheme developments.
Nuclear Business Progress
Nuclear business remains a decadal opportunity. Testing for the first two sets of pumps at the Tarapur plant was scheduled to begin on March 22, 2026. The company expects to invoice a minimum of two to maximum four pumps during the year. Nuclear revenue for CY 2025 was approximately ₹30 Cr to ₹50 Cr, and the potential annual run rate is estimated between ₹100 Cr to ₹200 Cr in a good year.
Solar Business Evolution
KSB has increased its manufacturing share in the solar package from an initial 10% to 30-35% today, adding controllers to in-house production alongside motors and pumps. Revenue target for solar this year is minimum ₹300 Cr (up from ₹245 Cr in the last year). Working capital challenges specific to Maharashtra documentation processes are being addressed.
Other Segments
- Water/Wastewater: Showing 30% CAGR growth, supported by new products like Sewatec vertical turbine pumps.
- Firefighting: Growing at a 68% CAGR, benefiting from data center orders (Etanorm received FM/UL certification).
- Mechanical Seals: A starting business generating around ₹15 crores, considered highly profitable, though currently focused on non-API seals.
- Mining Pumps: The foundry is now certified for white iron casting, positioning KSB India as a global supplier for vertical pumps in this segment.
Outlook on Competition and Margins
Management noted that while competition is stiff in the project/engineered business (refineries, petrochemicals), the aftermarket segment shows lower competition. Export margins are generally better than domestic margins due to price levels and currency advantages. The company aims to maintain a healthy EBITDA level of 13% to 14% while focusing on top-line growth to gain market share.
Q&A Takeaways
In response to questions, Rajeev Jain confirmed that the modest 7% top-line growth in Q4 was mainly due to the spillover of planned nuclear revenue into the current year. Furthermore, in nuclear projects, while KSB has secured orders for Gorakhpur and Kaiga, the ordering for Rawatbhata expansion is pending, expected in 2027. The commencement of supplies is linked to the first pour of concrete at the site.
Source: BSE
