Kilburn Engineering targets ₹800 cr revenue while trimming margin goals
Management expects 20-25% growth in FY27, but warns that 25% EBITDA margins are no longer sustainable due to rising logistics costs.
— 1 earlier story on Kilburn Engineering Ltd. →What's new
- Revenue guidance set at ₹750-800 crore for FY27, a 20-25% growth target.
- Management expects ₹800-1,000 crore in new orders from a ₹4,000 crore pipeline.
- Working capital days hit 184, driven by year-end dispatches and Red Sea disruptions.
Why this matters
The margin revision is a reality check on the company's scaling phase. While the order pipeline remains large, the jump in working capital to 184 days suggests that growth is becoming more expensive to finance.
What we're watching
- Whether the company can convert its ₹4,000 crore inquiry pipeline into firm orders.
- Any further movement in working capital days as the company scales.
- Progress toward the ₹1,000 crore revenue milestone by FY28.
The full read
Kilburn Engineering is recalibrating its expectations. While the company is pushing for 20-25% revenue growth in the coming year, targeting ₹750-800 crore, it has officially walked back its 25% EBITDA margin target. Management now expects margins to stabilize at 20%+, citing the reality of project mix and logistics costs. The growth plan relies on an inquiry pipeline of over ₹4,000 crore, with the company aiming to land ₹800-1,000 crore in new orders. However, the operational cost of this expansion is visible in the balance sheet. Working capital days have climbed to 184, a consequence of heavy year-end dispatches and shipping delays in the Red Sea. While management insists no business was lost to these disruptions, the shift in margin guidance and the ballooning working capital cycle show that scaling to their ₹1,000 crore FY28 goal is a capital-intensive process.
Questions answered
- Why did management lower its EBITDA margin guidance?
- Management cited the unsustainability of previous 25% targets, pointing to project mix and rising logistics costs as the primary drivers for the adjustment to 20%+.
- How much revenue is the company targeting for the next fiscal year?
- Kilburn is targeting revenue between ₹750 crore and ₹800 crore, which represents a 20-25% growth rate.
- What is the status of the company's order book?
- The company is targeting new orders worth ₹800-1,000 crore, supported by an inquiry pipeline exceeding ₹4,000 crore across the nuclear, oil and gas, and steel sectors.
- Did Red Sea geopolitical tensions hurt the business?
- The company confirmed that no business was lost, though the disruptions did shift some order closures from the previous year into the first half of the new fiscal year.
- What is the current state of the company's working capital?
- Working capital days have spiked to 184, a result of heavy year-end dispatches and delays caused by geopolitical factors.
Story so far
All notes on KLBRENG-B →- 27 May 2026 · 3:18 PM IST Kilburn Engineering targets ₹800 cr revenue while trimming margin goals
- 1d ago Kilburn Engineering profit jumps 54% as margins beat guidance