Kirloskar Electric Co Ltd has accepted the resignations of two senior management personnel, marking a shift in its operational and sales leadership structure. The company notified the Bombay Stock Exchange on August 20, 2026, confirming the departure of Arunesh M, Senior Vice President – Operations (Mysore Unit), and Yathiraj B.L., Vice President – Oil Filled Transformers Division.

Both executives cited personal reasons for their exit. Arunesh M submitted his resignation on July 31, 2026, requesting immediate relief from duties at the closure of his shift that day. Yathiraj B.L. tendered his resignation earlier, on May 14, 2026, with an effective date of May 31, 2026. He requested a waiver of the notice period to travel to the United States to visit his son, noting that his return timeline remained uncertain.

Regulatory Compliance

The intimation was issued in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The filing also referenced a SEBI circular dated January 30, 2026, regarding additional details sought by the regulator. Mahabaleshwar Bhat, Company Secretary & Compliance Officer, signed the disclosure on behalf of the company.

Executive Departures

The resignations impact key functional areas within the organization:

• Arunesh M: Held the position of Senior Vice President – Operations (Mysore Unit). His last working day was July 31, 2026.
• Yathiraj B.L.: Served as Vice President – Oil Filled Transformers Division (previously listed as Sales & Marketing in his resignation letter). His last working day was May 31, 2026.

The company did not disclose any financial implications or replacement plans in the filing.

Kirloskar Electric Company Limited reported a standalone loss after tax of ₹5.99 crore for the quarter ended June 30, 2026, compared to a profit of ₹0.45 crore in Q1FY26. The company’s revenue from operations fell 21.5% year-on-year to ₹103.85 crore, reflecting subdued billing as customers deferred dispatches amid macroeconomic uncertainty.

Despite the revenue contraction, order booking surged to ₹184 crore, marking a 28% increase over the corresponding quarter last year and a 36% rise sequentially. This resulted in a book-to-bill ratio of 1.79 times. The order intake was primarily driven by the transformer business at Mysore, which recorded its highest-ever Q1 intake, with growing traction in the data centre segment for cast resin transformers.

Financial Performance

The company’s cost of materials consumed stood at ₹80.83 crore, representing 69.1% of revenue, an improvement from 71.9% in Q1FY26. Finance costs declined 17.3% year-on-year to ₹5.25 crore, attributed to improved working capital utilisation. However, these efficiencies were offset by lower top-line growth, leading to a pre-tax loss of ₹5.95 crore.

Note: Previous quarter order inflow derived from reported 28% YoY increase.

What the Numbers Show

While the income statement reflects operational pressure, the balance sheet signals active restructuring efforts. The company disclosed that its net worth (excluding revaluation reserve) is eroded, yet it continues on a going concern basis supported by the repayment of all term loans restructured under the Joint Lenders’ Forum (JLF) mechanism. Additionally, the board approved a preferential issue of up to ₹40 crore equity shares to promoter group company Kirloskar Power Equipments Limited, aiming to strengthen capital adequacy.

Segment Performance

In the power generation/distribution segment, revenues dropped significantly to ₹41.04 crore from ₹72.07 crore in Q1FY26, though segment profit before interest and tax remained positive at ₹1.30 crore. The rotating machines segment saw revenues decline slightly to ₹57.43 crore from ₹59.44 crore, with segment PBIT falling to ₹2.62 crore from ₹3.58 crore.

Corporate Developments

The board appointed M/s. Rao, Murthy & Associates as Cost Auditors for FY27. Furthermore, the company is advancing the monetization of immovable property at Hubballi, following a High Court directive for change of land use, which management expects will improve working capital in forthcoming periods.