Kirloskar Brothers Shifts to Value-Added Manufacturing and Services Amid Declining EPC Revenue
Kirloskar Brothers Limited is transitioning from low-margin engineering, procurement and construction (EPC) projects to focus on value-added manufactured products and services. EPC revenue share has decreased from 10% in FY20 to 3% in FY25. The company aims to enhance profitability and operational efficiency through manufacturing improvements and digital initiatives, while maintaining a selective approach to EPC projects in water, power, and irrigation sectors. The pending order book reached INR 3,727 crore in FY26, driven by demand across various sectors.
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Kirloskar Brothers Limited is shifting its focus from low-margin EPC projects to value-added manufacturing and services, with EPC revenue declining from 10% in FY20 to 3% in FY25. The company is prioritizing higher-margin offerings and engineered solutions to improve profitability.
Initiatives include manufacturing debottlenecking, digital transformation, and cost optimization. Investments in automation and IoT aim to enhance production efficiency and expand service revenues. As of Q3 FY26, the consolidated pending order book was INR 3,727 crore, reflecting strong demand in irrigation, power, and industrial sectors.
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