Market leader stock with revenue growth guidance of 50% for FY26 to keep an eye on

SYNOPSIS: Kilburn Engineering projects 50% topline growth for FY26 with a Rs 700 crore order book, driven by strong demand, new acquisitions, and annual growth of 25%, supported by both organic expansion and selective inorganic opportunities

The shares of this company, which is engaged in designing and commissioning customised equipment/systems for critical applications in several industrial sectors like chemical, steel, nuclear power, petrochemical, food processing, etc., are in the news today following the management guidance. 

With a market cap of Rs 2,928 crore, the shares of Kilburn Engineering Ltd have closed at Rs 569.3. The shares are trading at a PE of 35, whereas its industry PE is 33.2, and have given a return of 2,865% over the last 5 years along with the ROCE and ROE of 21.7% and 17.2%, respectively.

About the Guidance

Kilburn Engineering has set an upbeat tone for the year by guiding for 50% topline growth in FY26, a clear sign of the confidence management has in its pipeline and execution momentum. This sharp jump can be the result of recent order wins, an improving demand environment, and recent acquisitions. 

At present, Kilburn has an unexecuted order book of Rs 600 crore, and the management  expects this to rise from Rs 650 to 700 crore by the end of FY26. The newly acquired business is also projected to add Rs 80–100 crore to revenue, giving an additional boost. Looking beyond the upcoming fiscal year, the company has guided for 25% annual growth, supported by both organic expansion and selective inorganic opportunities. With the help of ongoing fundraisers, including around Rs 150 crore expected by May 2026, it is aiming to scale its operations to Rs 1,000 crore 

Management also acknowledged the nature of its business, which operates on longer project cycles, but said they are comfortable maintaining a 100-day working cycle. Promoter holding remains steady, and upcoming warrant conversions further signal insider confidence. Overall, the guidance reflects a company preparing for its next phase of growth, backed by a healthy order pipeline, disciplined operations, and clear financial visibility.

Financials and others

The revenue from operations for the company rose from Rs 104 crore in Q2 FY25 to Rs 154 crore in Q2 FY26, showcasing a YoY growth rate of 48%; similarly, the profit also grew by 80%, increasing from Rs 15 crore in Q2 FY25 to Rs 27 crore in Q2 FY26.

The company has built relationships with some of the most respected brands across a wide range of industries, showing the trust it has earned over the years. Its clients span petrochemicals, specialty chemicals, oil & gas, carbon black, power, pharmaceuticals, FMCG, fertilizers, metals, and mining. Big names like Reliance, LG Chem, ONGC, Cipla, Dr. Reddy’s, PepsiCo, IFFCO, JSW Steel, ACC, and Nirma all rely on the company for critical projects and solutions. This diverse client base not only highlights the company’s technical strength and reliability but also gives it a stable foundation, as it isn’t dependent on any single sector for growth.

The company’s closing order book of Rs 340.72 crore is largely driven by three key sectors that continue to show strong demand. The fertiliser segment leads the list, contributing 28.7% of the total, supported by steady orders from major players in the chemical space, followed by 16.0%, highlighting the company’s strong relationships and consistent work in supplying specialised engineering solutions. Close behind is the nuclear power segment, making up 14.4% of the order book—an encouraging sign of the company’s ability to win complex, high-value projects in a highly specialized field. Together, these three sectors account for nearly 60% of the company’s order book, giving it a strong and well-balanced foundation for future growth.

Kilburn Engineering has spent almost 40 years building expertise in designing and supplying highly customized process equipment. It’s one of the few companies worldwide that offers a full range of solid, liquid, and gas dryers under one roof. Its solutions are used across industries—from drying PVC, carbon black, soda ash, and chemicals to processing products like sugar, paddy, tea, and coconut. Kilburn also creates tailored packages for both onshore and offshore needs, making it a trusted partner for complex industrial applications.

Written by Leon Mendonca

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