AI assistant
Kilburn Engineering Ltd — Call Transcript 2026
Jun 1, 2026
61063_rns_2026-06-01_46533ce1-b393-40b8-a718-f4d79642dea3.pdf
Call Transcript
Open in viewerOpens in your device viewer
€
KILBURN ENGINEERING LTD.
Corporate office : 501, 5th floor, I-Think Techno Campus, Jolly Board Tower No.1, Kanjurmarg (East), Mumbai 400 042, Maharashtra, INDIA.
Tel No.: +91 22 6551 0300 Website: www.kilburnengg.com Email: [email protected]
01st June, 2026
To
The Corporate Relationship Department
BSE Limited
P.J. Tower
Dalal Street, Fort
Mumbai - 400 001
Scrip Code: BSE 522101
Sub: Transcript of earnings conference call on the audited Financial Results for the quarter and financial year ended 31st March, 2026
Pursuant to Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we submit herewith transcript of the earnings conference call held on 27th May, 2026 to discuss the audited financial results of the Company for the quarter and financial year ended 31st March, 2026.
Yours faithfully,
For Kilburn Engineering Limited
Abhijit Shevantilal Mehta
Abhijit Mehta
Company Secretary & Compliance Officer
Encl: A/a
AN ISO - 9001 : 2015 CERTIFIED COMPANY
CIN: L24232WB1987PLC042956
Registered office : 1901,19th Floor, Biowonder - Block A, 789, Anandapur, Eastern Metropolitan Bypass, Kolkata - 700 107, INDIA. Tel no.: +91 33 6904 5700
Saravali Works : Plot No. 6, MIDC - Saravali, Kalyan Bhiwandi Road,Taluka Bhiwandi, Dist. Thane - 421 311, Maharashtra, INDIA. Tel No.: +91 2522 663800 / 283000.
Ambarnath Works : Plot No. B-78/1, Anand Nagar, Additional MIDC, Ambernath (East),Dist. Thane - 421 506, Maharashtra, INDIA.
KILBURN ENGINEERING LTD.
"Kilburn Engineering Limited
Q4 FY26 & FY26 Earnings Conference Call"
May 27, 2026
KILBURN ENGINEERING LTD.
SKP
CHORDE & COLL
MANAGEMENT: MR. AMRITANSHU KHAITAN – CHAIRMAN – KILBURN ENGINEERING LTD
MR. RANJIT LALA – MANAGING DIRECTOR – KILBURN ENGINEERING LTD
MR. SACHIN VIJAYAKAR – CHIEF FINANCIAL OFFICER – KILBURN ENGINEERING LTD
MR. K. VIJAYSANKER KARTHA – MANAGING DIRECTOR – M.E. ENERGY PRIVATE LTD
MR. AMOL MONGA – WHOLE-TIME DIRECTOR – MONGA STRAYFIELD PRIVATE LTD
MODERATOR: MR. NAVIN AGRAWAL – HEAD, INSTITUTIONAL EQUITIES SKP SECURITIES LTD
+91 98200 27446 | [email protected]
Page 1 of 19
KILBURN ENGINEERING LTD.
Kilburn Engineering Limited
May 27, 2026
Moderator:
Ladies and gentlemen, good day, and welcome to Kilburn Engineering Limited's Q4 FY26 and FY26 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode and there'll be an opportunity for you to ask questions after the management's opening remarks. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded.
I now hand the conference over to Mr. Navin Agrawal, Head, Institutional Equities at SKP Securities Limited. Thank you, and over to you, sir.
Navin Agrawal:
Good afternoon, ladies and gentlemen. It's my pleasure to welcome you to this financial results conference call on behalf of Kilburn Engineering and SKP Securities. We have with us Mr. Ranjit Lala, Managing Director; Mr. Amritanshu Khaitan, Chairman; Mr. Sachin Vijayakar, Chief Financial Officer; Mr. K. Vijaysanker Kartha, Managing Director, M.E. Energy Private Limited; and Mr. Amol Monga, Whole-Time Director, Monga Strayfield Private Limited.
We'll have the opening remarks from Mr. Ranjit Lala followed by a Q&A session. Thank you, and over to you, Mr. Lala.
Ranjit Lala:
Yes. Thank you, Navin. Good afternoon, everybody. We welcome you all to the Q4 2026 and the financial year 2026 earnings call and updates on the company and its subsidiaries. Kilburn and its subsidiaries continue to deliver yet another consistent quarterly performance and for the year 2026.
A brief of Q4 and the financial year results are as follows. Kilburn had a top line of INR134 crores for the quarter Q4 with an operating EBITDA of 25.1%. For the financial year, the top line was INR448 crores with EBITDA of 25.9%.
On a consul basis, we achieved a top line of INR189 crores and EBITDA of 22.95% for Q4 and INR629 crores with EBITDA of 25.13% for the whole year. At the group level, we ended Q4 with an order backlog of INR467 crores.
We continue to have a strong inquiry pipeline of INR4,000 crores plus at a consul level across various sectors. And for the coming year, for the current financial year, we are targeting an order intake of around INR800 crores to INR1,000 crores at group level.
We have set a growth target of 20% to 25% on top line over last year, which would result in a revenue of around INR750 crores to INR800 crores. We hope to continue EBITDA margins of 20% plus. Furthermore, the expansion of the Kilburn factory at Saravali and Phase 2 expansion of M.E. Energy at Pune are both expected to be completed by end of Q2.
Whilst we have set aspirations both in terms of numbers and on completion of expansion plans, the risk due to geopolitical challenges continue, which do impact the order intake timeliness. We have witnessed a shift by a quarter in closing some of our major orders. The orders which were
Page 2 of 19
KILBURN ENGINEERING LTD.
Kilburn Engineering Limited
May 27, 2026
expected to close in Q4 last year are now expected to close in the next 2 to 3 months. However, overall, we are very positive about the overall business scenario.
With this, I would hand over back to Navin. Thank you.
Moderator: Shall we open the floor for questions?
Ranjit Lala: Sure.
Moderator: Thank you very much. First question is from the line of Uzair Lari from Aveksat Financial Advisory. Please go ahead.
Uzair Lari: Yes, hi. Am I audible?
Amritanshu Khaitan: Yes.
Moderator: Yes, sir. Go ahead.
Uzair Lari: Yes. hi, sir. Congrats on good set of numbers. So my first question is, sir, that for this financial year, if you look, our trade receivables have almost gone up by INR100 crores. And if you look at a stand-alone basis, our revenue increased by INR113 crores and trade receivables have gone up by almost INR100 crores, so which is also like leading to a negative cash flow. And also, our cash flow negative went from INR9 crores to INR17 crores. So, going ahead, how do we see the cash flow from operations, like when will the cash flow will be positive?
Sachin Vijayakar: See, this cash flow -- the negative cash flow is a result of our increase in our debtor's level. because in the last quarter, we have dispatched nearly INR130 crores of actual dispatches have happened against only INR50 crores, INR60 crores in the previous year. So, this particular -- this debtor realizations will start flowing in from June. So, this will definitely bring down the -- reduce the debtors and increase our cash flow. But on a consul basis, you will see we have a positive cash flow from operations.
Uzair Lari: Okay. And the next question is, sir, related to the working capital days. So, in this FY26, our working capital days went from 169 to 184 days. So, what will be the trend going ahead? Like will the working capital days reduce? Or will it be at these levels only.
Sachin Vijayakar: It will reduce, but not drastically because this time also, it is high because as I told you, it is because of the debtors, increase in the debtors. Number of days debtors have increased because of the last movement of dispatches, heavy dispatches during the last 2 months of the year.
Uzair Lari: And sir, one last question. This -- if you talk about this quarter, past few quarters, our cost -- material cost has been increasing quarter-on-quarter. So, any comment on that?
Sachin Vijayakar: That depends on the type of orders -- jobs we execute. So, it depends on the particular equipment we are manufacturing and the type of material of construction use in that. So, it keeps on varying.
Page 3 of 19
KILBURN ENGINEERING LTD.
Kilburn Engineering Limited
May 27, 2026
But overall, in the mix, we try to maintain our EBITDA margins based on all the orders executing.
Amritanshu Khaitan: If I can add here, if you see material cost could go up also due to the steel prices now going up. But as we have mentioned in the past, normally, we book our material immediately once we get the order. So, you may see absolute material costs going up, but then that will also result in the prices of our product going up and thereby the turnover increasing. So as long as our overall EBITDA margins remain at the guided range of 22%, 23%, we are very comfortable in the current scenario.
K. Vijaysanker Kartha: Just one more point to add to this, Vijay Kartha here, is that as we are moving to EPC jobs, a lot of turnover comes from site execution work like services. So there -- that also impacts the material cost. So, on a mix basis is what you see. Overall, the FX remains the same, and we maintain the EBITDA.
Uzair Lari: Okay. And sir, going ahead in 1 or 2 quarters, will the trade receivables like will they reduce or be at the same level? If you could share some insight on that?
Sachin Vijayakar: No, they will reduce because as I told you, the end of the year included some large orders like the Moroccan order, which nearly INR50 crores to INR60 crores is receivable in the next 2 to 3 months. So once that amount is received, this will definitely come down.
Uzair Lari: Okay. And sir, one order of our Granules India was on hold. So, has it been delivered?...
Moderator: Uzair, sorry to interrupt. Can you speak a little louder, please?
Uzair Lari: One order of Granules India was on hold. So, has it been delivered? Or is it still in the pipeline?
Amritanshu Khaitan: It is still at the same level, status quo.
Uzair Lari: Okay. That's all from my side. Thank you so much and all the best.
Amritanshu Khaitan: Thank you.
Moderator: Thank you. Next question is from the line of Andrey Purushottam from Cogito Advisors. Please go ahead.
Andrey Purushottam: Thank you for taking my question. First of all, congratulations for a good set of numbers. My first question was actually with respect to these numbers, one thing which I couldn't understand was that in the last year, operating leverage does not seem to have played out. So, could you just explain to me why that is so? And can we look forward to operating leverage kind of playing out in the subsequent year? That was my first question.
Ranjit Lala: Can you repeat your question?
Amritanshu Khaitan: I think Ranjit, I will take that. I think you're asking about operating leverage, right?
Page 4 of 19
KILBURN ENGINEERING LTD.
Kilburn Engineering Limited
May 27, 2026
Andrey Purushottam:
Right. That's right. Yes.
Amritanshu Khaitan:
So operating leverage and economies of scale has already played out. The company, if you see in the last 3, 4 years, has grown from a INR100 crores, INR200 crores revenue company now to INR600 crores. Now that leverage is already playing out and you see our employee cost as a share of total revenue coming down, you'll see that the growth is coming through different segments, including our subsidiaries. But also, it's also to do with product mix. So, there are times when you have certain jobs which are higher margin.
There are times when there are certain jobs being executed, which are slightly lower margin. So, economies of scale has already been achieved by the company. The leverage has already been achieved, and that's why we are stable at 25%-odd EBITDA margin. It's not that from 25%, we can jump to 30% or 35%. That will not happen because we are also building the company for the future. There's investments being made in people, in talent, in infrastructure, which is to take this company to a INR1,000 crores level in 2 years' time.
For example, in this year, we've taken a write-off of INR2 crores, INR3 crores in our operating expenses for breaking the building, the office building where our factory was where the new bay will come up. So, all these also come into expenses.
Andrey Purushottam:
Yes. I was just wondering as to why has PAT growth not been as fast as revenue growth? Are there some exceptional items such as the one that you mentioned or exceptional tax paid, etcetera.
Amritanshu Khaitan:
Because last year, we were not on full tax. We are on full tax from this year. -- we had a carryforward last year earlier.
Andrey Purushottam:
So, my second part of the question is that can we look forward to these things kind of smoothening out in the next year and therefore, operating leverage playing out more fully on the course of the next 12 months?
Amritanshu Khaitan:
So, what I'm trying to explain to you is that we are already enjoying operating leverage. If we are being able to maintain a 25% EBITDA margin and grow the company at a 20%, 25% rate this year, which is the organic part, then the Monga Strayfield acquisition brought in the inorganic part. So, we have already enjoyed this operating leverage. And if the company continues to grow, net of investments, we should be able to maintain a profitable growth going forward. But obviously, this will depend also on the product mix and the type of orders we receive.
Andrey Purushottam:
Right. My second question was relating to the West Asian crisis and the Iranian crisis. Are there any implications on you from, a, the demand side? And secondly, from the cost side and the supply chain side. Could you just elaborate on what.
Amritanshu Khaitan:
Yes. So, regarding the order pipeline, we do have 2, 3 orders, which Mr. Lala also mentioned, which was supposed to be finalized by March, but we expect that to be finalized now in the next
Page 5 of 19
KILBURN ENGINEERING LTD.
Kilburn Engineering Limited
May 27, 2026
2, 3 months. This got delayed due to the current Middle East crisis. Beyond that, in Monga Strayfield, Amol is on the line.
A lot of our equipments were ready for dispatch, which could not be dispatched again due to this problem which has happened globally. That impacted our revenue a bit in Q4 for the subsidiary, which hopefully will also get mitigated by second quarter of this year. Regarding cost inflation, I think as we've mentioned in the past, you will have cost inflation, whether due to the war or otherwise with metal prices going up.
And as a company, we follow the policy of booking our material as and when we book our orders. So that helps us protect our margins. Amol, if you want to highlight the impact of the West Asia crisis on our dispatches in Q4, you can just give some highlights on that.
Amol Monga:
Yes. This is Amol. Just to add to the crisis had an impact in terms of logistics mainly, where a bunch of our orders, which are slated for the U.S. where first, starting with the gas availability crisis, it slowed our ability to produce the required products at the usual pace where we had to make arrangements for alternative fuels when industrial gas was not easily available. So that had an impact on the time lines.
And when we got over that and got the products ready, international shipping routes are now quite blocked and it takes a long -- much longer time to arrange shipping from the Mumbai Seaport to other parts of the world.
While business hasn't stopped, it has definitely increased the lead times for arranging containers and for organizing dispatches. So, we've had situations over the last 2 to 3 months where we had to store a lot of ready goods, just waiting for the logistics teams to be able to organize their dispatch. So that impact has been felt, not in terms of ability to produce, but more an ability to book the order and send it out to customer.
Moderator:
Thank you. Next question is from the line of Sagar Shah from Spark Capital Advisors. Please go ahead.
Sagar Shah:
First of all, congratulations to the entire team of Kilburn for another great set of numbers actually. So now sir, my first question was related to our -- I wanted some outlook related to our inquiry pipeline. We have a closing order book of around INR467 crores. But what is the inquiry pipeline in these kind of circumstances right now? So, means we have some exposure to the Middle East.
So basically, how is the First of all, you used to disclose on the investor presentation that you have around INR3,000 crores worth of inquiry pipeline, INR4,000 crores worth of inquiry pipeline. So, I wanted to understand what is the inquiry pipeline and how is the demand outlook? And then I have some data keeping questions.
Ranjit Lala:
Right. So, we still have a good inquiry pipeline for around INR4,000-odd crores, and it is quite diversified. Like we have inquiries from the fertilizer vertical, some from the nuclear, then
Page 6 of 19
KILBURN ENGINEERING LTD.
Kilburn Engineering Limited
May 27, 2026
sludge processing, petrochemicals, offshore gas vapor recovery units. So, we have a very diversified pipeline. And as I mentioned, we are targeting an order intake of around INR800 crores to INR1,000 crores in the current financial year.
And I would expect that the way discussions are on with the customers, by end of quarter 2, we should have closed at least half of these orders, let's say, INR450 crores to INR500 crores. So that's what keeps us confident. We also have a few inquiries from abroad, a couple of them from the Middle East and some from the Far East. We are just waiting for the right time to arrive and when we can close them.
Sagar Shah:
Okay. Sure, sir. So.
Amritanshu Khaitan:
What Ranjit mentioned was a lot to do with Kilburn. If you look at our subsidiaries, ME Energy is seeing a lot of strong inquiries from the ferrous alloy sector and the steel sector. And in Monga Strayfield, we are seeing inquiries coming in from defrosting as well as textiles and food processing. So, we are catering to multifaceted industries.
So as and when these inquiries fructify, it should add to the order book. And for ME Energy, the other critical sector is cement, which is what they are working on. So hopefully, inquiries are trickling in, in the cement space as well. So, as they get more established in the sector, the inquiry pipeline automatically gets increased.
Sagar Shah:
Okay. Fine, sir. So basically, related to that question, if we split your existing capacities, right, from Kilburn on Saravali plant, then your Ambernath plant and then your ME Energy Phase 1, Phase 2, your capex is yet to commence and Monga Strayfield. So individually, can you sum up that if we clock around INR800 crores to INR1,000 crores of revenue that we are targeting, so can we -- without even any capex requirements, are we in a position to clock revenues with these existing capacities, sir?
Amritanshu Khaitan:
Sir, we have already announced certain capex program, which is under implementation. We believe this will be completed by September, October of this year. With that capex program being completed, our capacities will be adequate to cater to the growth which the company has planned by FY28.
Sagar Shah:
Okay. Fine, sir. So now this time, sir, you haven't, now my few set of questions were related to data keeping questions. This time, you haven't disclosed the order inflow. I wanted individually based on Kilburn, Monga and M.E. Energy actually. You have an order inflow of around.
Amritanshu Khaitan:
We are not giving that breakup because we have mentioned in the past as well that there are many orders which get booked in Monga, in M.E. Energy or Kilburn, but the plants of each companies are being utilized. So we are giving a consolidated order booking. We don't want to encourage a breakup of the order book. Because treat it like, you have to treat these 100% subsidiaries like individual factories as well. There are times when if Monga Strayfield, if M.E. Energy gets an order, but Kilburn needs to execute it in the Ambernath plant, we will do that.
Page 7 of 19
KILBURN ENGINEERING LTD.
Kilburn Engineering Limited
May 27, 2026
Moderator:
Thank you. Sagar sorry to interrupt. I will request you to come back for a follow-up question. Next question is from the line of Sangeeta Purushottam from Cogito Advisors. Please go ahead.
Sangeeta Purushottam:
Yes. Hi can you hear me?
Amritanshu Khaitan:
Yes we can hear you.
Sangeeta Purushottam:
So I just wanted to check about your growth guidance. Obviously, there was a very strong growth in '26 because there was also inorganic growth included. But when I'm looking at your own slide number 32, you've guided for 25% to 30% from FY27 onwards. And I remember from the previous discussions also that the guidance was in the range of 25% to 30%, which you are now lowered to 20% to 25%. So is there any specific reason why you've turned a little cautious on the growth? That's one.
The second question I have is that in terms of whatever warrant conversions, etcetera, were there, how much more dilution is remaining to be done? Is there more warrant conversion which will happen in '27?
Amritanshu Khaitan:
So Sangeeta, we have always maintained a 20% to 25% growth strategy going forward for the next 2 years. And with that, our aim is to reach INR1,000 crores by FY28. We will stick to that guidance. We have not changed that guidance in the current quarter, firstly.
Second, the point you mentioned about warrant conversion, all warrant conversions have happened. So there's no further dilution expected. All the fundraise has happened. The money is coming to the company and it's being utilized for growth prospects of the company. So there's no more dilution.
Sangeeta Purushottam:
Okay. So if you look at your Slide 32, in the same presentation, the investor presentation, you've given CAGR, you've written the CAGR of 25% to 30%.
Amritanshu Khaitan:
This is a presentation which has just been uploaded today?
Sangeeta Purushottam:
Yes. Yes.
Amritanshu Khaitan:
I think it's a typo error by the IR team who's made it. Our guidance is 20% to 25%, which is also there in our press release, which was released yesterday. This is a typo error.
Sangeeta Purushottam:
Okay. All right. And I know that you've been guiding that margins will be 20% plus. Now that's a little worrying when we're currently looking at margins of 25%, right? EBITDA margin. And because if you grow by 20% to 25%, the margin slips to 20%, then we're really looking at no growth.
Amritanshu Khaitan:
No, Sangeeta, again, we are not guiding for 20%. We are saying 20% plus. We have also mentioned we are looking at maintaining margins of 22%, 23% in all our commentary. It is not possible for us to predict whether we will be at 25% or 23% because you'll appreciate that for
Page 8 of 19
KILBURN ENGINEERING LTD.
Kilburn Engineering Limited
May 27, 2026
any engineering company enjoying 20% plus. When I say 20% plus, you look at it from 20% to 25%, this range, it is a very high margin which the company is being able to deliver.
So we want to keep that buffer that we are guiding 20% plus, but we've also mentioned that we are looking at maintaining our margins, which are there today, which is at 22%, 23%. And what happens is quarter-on-quarter, you will have variances. Like, for example, the current quarter, we've had very high turnover, and we've had a margin of 22%, 23%. So we can be questioned by you all that, why is it that the economies of scale is not showing?
But in the same quarter, we have high costs which have come in, like the freight cost of dispatches for our large Moroccan order came in quarter 4. So again, for a project-led business where our execution happens over 6 months to 12 months, it is not strategically fair to compare 1 quarter margin or the second quarter margin. But look at an annualized trend because you will have some variances which will happen quarter-on-quarter.
Sangeeta Purushottam: Okay. Then if we look at, if I'm looking below the EBITDA margin, has the depreciation now, is it going to peak out at about, it's 116 for this, 16.6 for this year.
Amritanshu Khaitan: I mean the depreciation is INR14 crores, INR15 crores. It may go up by another few crores as our new capex plans are done, but not very significant.
Sangeeta Purushottam: Okay. And in interest of also should get moral, you should move what? Are you expect it to move in line with turnover or it should go less than turnover?
Amritanshu Khaitan: The finance cost, I would think should remain stable because if you are able to grow the business by another INR150 crores, INR200 crores and keep finance costs similar, then automatically, you're actually improving your overall working capital.
Sangeeta Purushottam: Right. So for finance cost to remain stable in a growing top line scenario means you will try to bring your working capital days down?
Amritanshu Khaitan: Correct, which Mr. Sachin mentioned earlier in the call that we have large dispatches, which have happened. So the payment of those dispatches should come in between June and September.
Sangeeta Purushottam: Right. No, I meant more like the average working capital through the year. I'm not talking of peak working capital.
Amritanshu Khaitan: So average working capital, if you see, is actually not very high. Now if you compare us to last year, our interest costs have remained more or less similar. but the turnover has grown 50%. To me the cash flow is better from that point of view. It is only when you look at September and March. But part of that had only gone into working capital. Most of it went into payment for Monga Strayfield.
Page 9 of 19
KILBURN ENGINEERING LTD.
Kilburn Engineering Limited
May 27, 2026
Sangeeta Purushottam: Okay. Okay. So that means that your, see, if you start looking at below the EBITDA, you could see higher growth of PBT as compared to EBITDA because your depreciation should not grow at 20%, 25%.
Amritanshu Khaitan: You're right in that.
Sangeeta Purushottam: Or interest margin will not grow 20%, 25%.
Amritanshu Khaitan: That's right. And the other point, just to, for the larger community hearing the call, a lot of our other income is actually operating other income, which does get discounted by investors because a lot, because all our export orders have exchange gain also which comes in, and that comes in, in other income, but it's actually operating income. So you have to take the operating income, the other income as part of the EBITDA. About 80% of it is part of the EBITDA.
Sangeeta Purushottam: Okay. Alright. Understood. Thank you.
Moderator: Thank you. Next question is from the line of Bhavya Nahar from Tamohara Investment Managers. Please go ahead.
Bhavya Nahar: Hi sir. Good afternoon. I wanted to ask, when do we expect the execution of the nuclear orders? Any visibility out there?
Ranjit Lala: We have 2 orders which are related to that vertical. And typically, these orders move quite slow. That's a fact. So currently, I expect then that it would take another year plus for the complete execution.
Bhavya Nahar: Okay. And so do we think that our current order book is sufficient for like growth in the coming quarters? Or receiving more orders.
Amritanshu Khaitan: As we mentioned in our press release also, we have an opening order book, plus we are expecting a lot of orders to get concluded in the next 2, 3 months. So with that, we are confident of achieving the guided figures, which we have. indicated.
Bhavya Nahar: Okay. And on M.E. Energy, how far are we on getting orders for the waste heat recovery systems in the cement sector? Like is it something which is already happening, discussions are ongoing or not reached that stage yet?
Amritanshu Khaitan: So, on M.E. Energy, Mr. Kartha can highlight, we are not focused only on the cement sector. We are looking at large orders for waste heat recovery boiler systems in steel, in ferrous alloy. Cement is a sector where our breakthrough has been more for the hot air gas generators, where we've got repeat orders.
We've got our first inquiry for waste heat recovery boiler system in cement, but that is still very early stage. But our success, I believe, will be more in the ferrous alloy and steel sectors, where also there is a very large requirement of the systems. Vijay, if you can expand on it, please?
Page 10 of 19
KILBURN ENGINEERING LTD.
Kilburn Engineering Limited
May 27, 2026
K. Vijaysanker Kartha:
Yes. As Amritanshu just mentioned, we have our sight very clearly on moving into getting orders on waste heat recovery-based power plants for the cement plant. So, we have an inquiry, but it is very early stage. First inquiries on and the second is just around the corner. So -- and as you know, these project finalizations will take time.
And we have already moved into cement industry with hot air generators with nonconventional fuels, and very successfully and there are inquiries going. And parallelly, there's a huge growth on the ferro alloy and steel industry.
As you know, we already are executing two large value orders. And we expect to add a couple of other sooner than later, I mean, probably in this or next quarter. And I think more success and more income from ferrous alloys, at least for this financial year, from ferrous alloys and steel sector than the...
Bhavya Nahar:
Are losing your audio. Go ahead.
K. Vijaysanker Kartha:
Yes. I mentioned that for the early part of this financial year, maybe first 8, 9 months, we'll have more larger value orders from ferrous alloys industries or steel industry rather than cement industry, success will be towards end of the year or maybe next year.
Bhavya Nahar:
Thank you so much.
Moderator:
Next question is from the line of Divyam Sureka from Nuvama Wealth Management. Please go ahead.
Divyam Sureka:
Good afternoon, team, and thank you for the opportunity. My question is on the competitive landscape for equipment supply to nuclear power plants. So how is the same shaping up? And how many approved vendors are there by NPCI or Ashvini? And how much time did it take for us to attain these qualification and approvals?
Ranjit Lala:
So typically, we face competition from Lloyds Engineering. So, one of the major competitors, yes. How long it takes for the approval of the old process? Kilburn has supplied components and systems in the past for the nuclear business. So, we were already qualified and we didn't have to go through this qualification again as such.
In terms of landscape, definitely, there are opportunities coming up. But what is visible to us is another 2 or 3 projects, okay? One is in Kaiga and the other one -- there are 2 projects on which we are working very closely. Of course, we are not directly bidding. It is through an EPC company.
Divyam Sureka:
Got it, sir. And sir, in a typical 800-megawatt nuclear project, what is the rupee amount of a product supply?
Ranjit Lala:
I would not know.
Divyam Sureka:
Thank you, sir. Thank you for taking my question.
Page 11 of 19
KILBURN ENGINEERING LTD.
Kilburn Engineering Limited
May 27, 2026
Moderator:
Next question is from the line of Naitik Mohata from Sequent Investment. Please go ahead.
Naitik Mohata:
Good morning, sir. And thank you for the opportunity. I have 2 questions, and pardon me if my question might be repetitive. One, why has our gross margins declined in quarter 4? And is it due to product mix? Or is it due to increasing input cost?
And my second question would be that given our revenue target of almost INR800 crores for FY27, our opening order book seems quite tepid. So, our products are quite complicated and we have a long gestation period. So, do we still -- are we still confident that we can achieve this kind of top line in FY27?
Ranjit Lala:
So let me answer the second question first. Well, we have to set target for ourselves, and we have always said high aspirations. Let me put it that way. In the past also, I think when we have spoken about these numbers, whether we are growing at 30%, 35%, 50% or so, I think by and large, we have been able to reach those numbers.
And to achieve this target of INR750 crores to INR800 crores, the growth that we are talking about of 20% to 25% CAGR, we are working on the order intake. I do agree with you that today, the opening order is on the lower side compared to last year. But as I said, we -- some of the orders have got delayed by a quarter. Once they are in place, we should be able to achieve. In case there's any deviation on same, I'm sure by next quarter, we will revert back.
Amritanshu Khaitan:
Just to add, we are guiding for a range of 20% to 25%. So that gives us a range of INR750 crores to INR800 crores for the current fiscal. We have already indicated that we expect the second half of the year to carry a lot more of the weight of execution, assuming that a lot of orders will be finalized in the next 30 to 60 days.
Naitik Mohata:
Fair, sir. That's helpful. And on my first question?
Sachin Vijayakar:
As regards gross margin is definitely, as Mr. Amritanshu earlier said, it depends on product mix, also the type of orders we are executing. Now this quarter, the orders which were executing had a higher component of subcontract charges, outside subcontract was involved. So that is the reason. So, it depends on order to order and type of equipment we are manufacturing.
Naitik Mohata:
Right. But for a full year perspective, 22 to 23 margins is something that is sustainable for us, right?
Amritanshu Khaitan:
Sorry, I lost you. Can you kindly repeat your question?
Moderator:
Sir, the participant is done with the question. Next question is from the line of Sanjay Shah, Individual Investor. Sorry, your voice is breaking.
Sanjay Shah:
I just wanted to get a sense beyond the next 1 year or 2 years for which you've given a guidance, the company and how does the management think about the company in, let's say, 4 to 5 years' time in terms of size or complexity in terms of contribution from domestic -- just wanted to see how you think about the company in 4 or 5 years' time in terms of size and in terms of complexity
Page 12 of 19
KILBURN ENGINEERING LTD.
Kilburn Engineering Limited
May 27, 2026
of the work that you do or in terms of the international to the domestic mix or in terms of exposure to different sectors?
Amritanshu Khaitan: So, if I can take that question, Ranjit, Kilburn 4 years ago was a INR100 crores revenue company, making INR10 crores of EBITDA. From there, we have scaled up to INR650-odd crores this year with an EBITDA of INR160 crores. The EBITDA of INR160 crores is higher than what the revenue of this company was 4 years ago.
So, we do not believe in looking at 5-year plans and 10-year plans and working on those kinds of aspirational numbers, because I think you can limit yourself in growth sitting where you are today. As a strategy, we are very focused on achieving a road map goal for the next 2 years.
We believe if we are able to achieve what we've set out for the next 2 years, a lot of opportunity would come with the scale of the company increasing, the market cap increasing, cash flow increasing, there can be opportunities to grow the company more rapidly. So, it's more prudent for us to focus over the next 2 years and then see where we can take the company from there.
Sanjay Shah: Understood -- do you see the sectors that you are exposed to changing or the domestic to international mix changing very significantly?
Amritanshu Khaitan: We believe exports will play a critical role going into the future. And we think 30% to 40% of our revenue can come from exports.
Sanjay Shah: Got it. And one last question, if I may. In terms of exports, when you say, are there any particular markets that you would be more excited about?
Amritanshu Khaitan: It is spread across continents. I think there's business opportunities which are there in the US, in Europe, in Far East, Korea, Africa. So, I mean, we are not bound by any one particular geography.
Sanjay Shah: Thank you.
Moderator: Next question is from the line of Divyansh Thakkar from Finterest Capital. Please go ahead. Divyansh, may I request to unmute your line and proceed with your question.
Divyansh Thakkar: Sir, it is Divyansh Thakkar. I might have written my name wrong, but my question has already been answered.
Moderator: Thank you very much. Next question is from the line of [Rabindra Nayak 0:41:11] from Nirmal Bang. Please go ahead.
Rabindra Nayak: Sir, a couple of questions. One is that.
Moderator: Rabindra, can you speak through the handset, please?
Rabindra Nayak: Is it clear?
Page 13 of 19
KILBURN ENGINEERING LTD.
Kilburn Engineering Limited
May 27, 2026
Ranjit Lala: Yes.
Rabindra Nayak: A couple of questions regarding -- you mentioned that we have missed some orders in '26 and Q4. Can you please quantify that order? What is the order we have missed?
Amritanshu Khaitan: We have not missed orders. We have just mentioned that certain orders getting finalized have got shifted into Q1 of this year and Q2. We expect things to get finalized in the next 2, 3 months.
Rabindra Nayak: Can you please quantify that order? I'm just asking that?
Amritanshu Khaitan: As we mentioned, we are looking at booking between INR500 crores to INR600 crores of orders by September. So, part of this would have come in before March. It's now going to come in, in the current financial year.
Rabindra Nayak: Okay. Sir, Fine. So, whether we face any delay because the order finalization execution delay was there because in FY26, in Q4 of this year?
Amritanshu Khaitan: We've had some dispatch-related delays in Monga Strayfield, which was mentioned earlier in the call due to logistics of the Middle East war.
Rabindra Nayak: Okay. And sir, the working capital actually increased substantially in this year. So, can you please tell me some color on this, how the -- which are the sectors we faced a delay in payments in FY26? So that -- and how do we expect these sectors to be in FY27?
Amritanshu Khaitan: So, working capital, if you see our interest cost has remained more or less stable. So, our absolute borrowing has actually been stable. There have been dispatches which have happened, as we've mentioned in the last -- in this quarter. The money will be realized from the customers in the next 3, 4 months. So, we believe that the working capital cycle will again normalize as collections come in.
Sachin Vijayakar: As per the payment terms, there is no delay as such.
Rabindra Nayak: Okay. No, I'm just getting some color which are the sectors actually you are facing some sort of stress in terms of payments? That is what my whole question.
Amritanshu Khaitan: We are not facing any stress for any sector. Most of our dealings are with the private sector. We are not facing any payment delays from them.
Rabindra Nayak: Okay. And sir, you mentioned that you are expecting INR800 crores of order inflow in this year. So, can you please give us any color on the sector-wise breakup? And also, if a subsidiary-wise breakup, you can give, that would be helpful.
Amritanshu Khaitan: We are not -- sir, we cannot give such detailed breakup. It is a dynamic industry where we are serving over 10, 12 industries. We have a INR4,000 crores pipeline. Depends on which orders materialize, we believe we should be able to book 800 crores to 1,000 crores of orders. The main
Page 14 of 19
KILBURN ENGINEERING LTD.
Kilburn Engineering Limited
May 27, 2026
sectors, everyone knows is nuclear, steel, oil and gas, Petrochem. So, it's a range of fertilizer. So, they are all of them. There's not one sector.
Rabindra Nayak:
Okay. Now which sector is a little bit in a positive in terms of growth this year. So that's why I'm asking?
Amritanshu Khaitan:
As we mentioned, we are positive on multiple sectors. I think the only sector where we are seeing relatively low capex is soda ash, which is out of our 14, 15 sectors we are catering to.
Rabindra Nayak:
Okay. Lastly, the capex for this year?
Amritanshu Khaitan:
It remains the same what we've been guiding for in the last 2, 3 calls, which is around 40 crores odd.
Rabindra Nayak:
Okay. It is largely in the -- across the subsidiaries and stand-alone entity.
Amritanshu Khaitan:
Correct.
Rabindra Nayak:
Okay. Thank you. Thank you very much and all the best.
Moderator:
Thank you. Next question is from the line of Sagar Shah from Spark Capital Advisors. Please go ahead.
Sagar Shah:
Yes, thank you sir for the follow up. Now sir, my first suggestion to you, sir, will be that you please disclose the investor presentation a little early so that we can have a glance through in a little more detail actually, it was just disclosed 10 minutes before the call actually. So that is just my first something like suggestion to you.
Now sir, my overall, I have around 2 questions actually. Now you already alluded to the change in the EBITDA margins. Actually, that was just -- I can see this is just because of the gross margin actually. That is why our EBITDA margins look diluted in this quarter.
But for the overall picture, when we see overall in FY27 and FY28, something like as the steel prices have normalized now, do we see the EBITDA margins again clawing back to around 23%, 25%, considering you have such a healthy order pipeline, considering the -- you have an easy pass-through of the cost also? That is my first question.
Amritanshu Khaitan:
Again, I have raised it earlier in the call. Please add the other income into the EBITDA margins because a large part of the other income is operating in nature. Because we've had large export orders, we've gained foreign currency in those orders, which actually is part of revenue. So, if you see our margins even in this quarter has been relatively stable at about 23% odd. And if you take it at a consolidated level also, you are looking at the full year being 25%.
Ranjit Lala:
One more point which I want to add is you mentioned about pass-through in the cost. Our costs are not passed through, okay? We mitigate all the risk by placing orders on time. And there can
Page 15 of 19
KILBURN ENGINEERING LTD.
Kilburn Engineering Limited
May 27, 2026
be some surprises from time to time, which we have also said in the past, which may impact the bottom lines at times, okay?
So, we don't have a pass-through. And on the EBITDA margins, we have always said that -- yes, particularly, I have been saying it's 20% plus because, yes, I have been extra cautious. Normally, we are targeting 20% to 23%. But expecting that every year, we would be in the range of 25% or something, I think that may not be possible. But be assured that we are always working on maximizing the bottom lines.
Sagar Shah:
Yes, certainly, sir. And these EBITDA margins that you're clocking are one of the best in the industry by no means I. But -- and my second question, when you are guiding for 750 crores to 800 crores of order intake for this year, that will?
Ranjit Lala:
Order intake is 800 crores to 1,000 crores, I said.
Sagar Shah:
Okay. So, 800 crores to 1,000 crores for the year. So, when we talk of such healthy order intake, so actually, you already guided like which sectors actually are you targeting? But what kind of product profile actually that we are getting orders for that you can see and highlight? Is it for rotary dryers. Is it for spray dryers?
Ranjit Lala:
So, we are talking about the fertilizer vertical where we need a lot of rotary dryers. Then we talk about offshore gas wafer recovery units, they are skids for vapor recovery from the raw gas. Then we talk about petrochemicals, we talk about the VFPDs and the FPDs.
And then we talk about sludge processing, we are talking about paddle dryers. So, each of these verticals has a requirement for different kind of dryers or a combination of these. Apart from this, we also supply the balance of plant, which go with these dryers. So, it's a mix. Yes.
Amritanshu Khaitan:
And then you have the waste heat recovery systems for any energy, which is.
Ranjit Lala:
Yes Sorry.
Amritanshu Khaitan:
I was talking about the energy engine. Yes, In the ferrous alloy space as well as the steel space. And then you have the hot air gas generators for cement, which M.E. Energy provides. And then you have the RF dryers and sheet metal fabrication for Monga.
Ranjit Lala:
From the Monga Strayfield family. Yes. And in the past also, the Monga Strayfield products were more entrenched into textiles, and now we have really worked on getting inquiries from defrosting, from pulses from many other verticals, we have been developing products. So that's an ongoing process.
Sagar Shah:
Okay. And is it safe to assume, sir, that in FY28, post the capex that we'll be doing, when it will be commissioned in Q2 and Q3 FY27, we'll have even larger capacity to take orders in case of M.E. as well as Kilburn. And we can expect even more order intake actually in FY28. Is it safe to assume?
Page 16 of 19
KILBURN ENGINEERING LTD.
Kilburn Engineering Limited
May 27, 2026
Ranjit Lala:
Well, I think order intake and execution are 2 different aspects of business. With the current expansion, we will definitely be able to do INR800 crores comfortably, with both these expansions. On the order intake side, there are many other factors like you saw a little bit of delay in order intake because of the geopolitical situation. I think we should keep these 2 things separately. If you talk about an ideal situation, yes, you would like to take in orders of 1,000 crores and execute the same thing in 1 year.
Sagar Shah:
Okay. Fine, sir.
Ranjit Lala:
There are many dynamics which are in place, and we have to respect all those dynamics.
Sagar Shah:
Sure sir. I'll maybe connect you post the results. Thank you, sir, and all the best.
Ranjit Lala:
Sure. Thank you so much.
Moderator:
Thank you. Next question is from the line of Dhirendra Patro from Spark PMS. Please go ahead.
Dhirendra Patro:
Hello, sir. Thank you for the opportunity. I just want to just clear on the margin front. So the EBITDA margin guidance that you are guiding for FY27 would be 22% to 23%. This is including the other income side?
Ranjit Lala:
That's yes.
Dhirendra Patro:
Okay. That will be all from my end.
Moderator:
Thank you. Next question is from the line of Prajay from Wealthyvia Ventures. Please go ahead.
Prajay:
Hello Am I audible?
Moderator:
Yes, sir. Go ahead.
Prajay:
Yes. So, actually, I have the confusion. With regards to the order which was not being executed or being delayed. So, is my understanding correct that there are around 2, 3 orders that was supposed to be executed on Q4, but now it has been delayed to Q1?
Ranjit Lala:
Are you referring to the granules order?
Prajay:
Yes.
Ranjit Lala:
Talking about the order intake. Sorry, I mean, can you repeat your question, please?
Prajay:
What I'm trying to say that because of the current Iran issue, in the call itself, you said that there was some delay in the order execution or rather order intake.
Ranjit Lala:
There was a delay in the order intake.
Page 17 of 19
KILBURN ENGINEERING LTD.
Kilburn Engineering Limited
May 27, 2026
Amritanshu Khaitan:
No, there was a delay in order intake at overall level. And there has been some execution delay in one of our subsidiaries, which is Monga Strayfield. That will get evened out by second -- by the first half of this year. We expect that to be evened out by first half of this year.
Prajay:
Okay. And one thing I just wanted to understand, I'm sorry, it's a very basic question, but what I'm trying to understand is that Monga Strayfield business is not so much similar to M.E. and Kilburn, right, if I'm not mistaken?
Amritanshu Khaitan:
Monga Strayfield business is similar to Kilburn from the point of view that the product they make is for drying solutions, though the type of product they make is very different to what Kilburn makes.
Prajay:
Okay. So, perse, like is it possible to give Monga's order book?
Amritanshu Khaitan:
We do not disclose separate order books. But typically, Monga Strayfield had a short order cycle where they normally deliver in 3 months' time, their equipment. So, it's more like a running business.
Prajay:
Okay. I think that's one of two questions that I had. Most of the questions have already been answered. Thank you and all the best.
Moderator:
Thank you. Next question is from the line of Abhijit Mitra from Aionios Alpha. Please go ahead.
Abhijit Mitra:
Yes, thanks for taking my question. I'm just if you can share the average ticket size of orders that you're expecting when you're guiding for 800 crores to 1,000 crores of order inflows in FY2??
Amritanshu Khaitan:
Yes, very difficult.
Ranjit Lala:
I'll answer that, please. So, it can -- I will exclude the tea dryers, which are typically in the range of 40 lakhs to 50 lakhs. I'll exclude them. But anything between 2 crores to 5 crores for the smaller machines, we have some inquiries for around 40 crores odd and even a project of 100 crores plus. So that's the kind of range.
Amritanshu Khaitan:
And in ME energy, we are even quoting for jobs which are over 300 crores.
Abhijit Mitra:
Got it. Thanks that's from my end.
Moderator:
Thank you. Next follow-up question is from the line of Rabindra Nayak from Nirmal Bang. Please go ahead.
Rabindra Nayak:
Sir, thank you for the opportunity. Sir, regarding in Monga Strayfield, is it possible to give a bifurcation what is the revenue from the sheet metal and RF dryer side?
Ranjit Lala:
Amol, can you take that?
Page 18 of 19
KILBURN ENGINEERING LTD.
Kilburn Engineering Limited
May 27, 2026
Amritanshu Khaitan:
See, we do not generally give a breakup of our subsidiary revenue. But if you take from a range point of view, RF dryer would be about 50%, sheet metal would be 50%.
Rabindra Nayak:
Okay. Thank you.
Amritanshu Khaitan:
50-50 between the 2 verticals, but the details are as per the company policy.
Moderator:
Thank you. As there are no further questions, I'll now hand the conference over to Mr. Ranjit Lala for closing comments.
Ranjit Lala:
Yes. Thank you. First of all, thanks to all of you for participating in this call. I would like to just summarize that many of you have some concerns, I understand. That's what I could guess from this call. Well, geopolitical situations will always pose some kind of a risk, but I can assure you that we are very much on top of it. We are trying to work on closing as many orders as possible.
And overall, as a team, we are very positive. I'm sure as and when there are some developments or any changes happening, we will keep all of you posted. And I look forward to getting in touch with all of you in the next quarter. Meanwhile, all of you also requested or welcome to visit our factory and meet us one-on-one, and we can take questions. That's all from my side. Thank you so much.
Moderator:
Thank you very much. On behalf of SKP Securities Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.
Page 19 of 19