Kirloskar Industries has appointed George Verghese as Managing Director of its wholly-owned subsidiary, Avante Spaces Limited. The board approved the move on September 18, 2026.

Mr. Verghese will assume the role subject to approval by the members of Avante Spaces. The appointment is effective from September 18, 2026, and will continue until May 19, 2030. This role is an additional responsibility alongside his current position as Managing Director of Kirloskar Industries Limited.

Executive Profile

Mr. Verghese brings over 21 years of leadership experience across global organizations such as Dell, Reliance Communications, UST Global and Cummins. His career spans diverse functions including business operations, human resources, business strategy, marketing, and branding.

He holds a Master's degree in Management from XLRI Jamshedpur and a Bachelor's Degree in Engineering from the College of Engineering, Munnar.

His background includes prior senior roles at:

• Dell International Services
• Cummins
• Reliance Communications
• UST Global

Strategic Context

Mr. Verghese joined the Kirloskar Group in April 2021 as Vice President – Group HR. He subsequently served as CHRO and Chief of Staff at Kirloskar Oil Engines Limited, where he was part of the core leadership team that steered a strategic business turnaround.

He has been serving as the Managing Director of Kirloskar Industries Limited since May 20, 2025. In this role, he has worked closely with leadership teams across multiple group companies on strategic direction, operational alignment, institutional strengthening, and long-term value creation.

Rahul Kirloskar, Chairman of the Board at Avante Spaces Limited, said, "For over five years, George has been actively involved across multiple Kirloskar Group companies, contributing to business strategy, operational execution, and initiatives spanning HR, marketing, and culture. His experience across these areas has added valuable perspective to the Group's journey, and his expertise will further strengthen Avante Spaces as it builds for the future."

The appointment aims to strengthen governance and institutional leadership at Avante Spaces, aligning with broader organizational modernization efforts across the Kirloskar Group ecosystem.

Kirloskar Industries reported a consolidated net profit of ₹78.75 crore for the quarter ended June 30, 2026, down from ₹112.93 crore in the corresponding period of the previous year. Consolidated revenue from operations stood at ₹1,779.15 crore, compared to ₹1,827.41 crore in Q2FY25.

The Board of Directors approved the standalone and consolidated unaudited financial results on August 12, 2026. Kirtane & Pandit LLP, the statutory auditors, conducted a limited review of the results.

Financial Performance

Consolidated total income was ₹1,798.66 crore, driven primarily by revenue from sale of products and services at ₹1,772.79 crore. Other income contributed ₹19.51 crore. Total expenses amounted to ₹1,664.36 crore, including finance costs of ₹29.67 crore and employee benefits expenses of ₹102.04 crore.

Profit before tax from continuing operations was ₹104.97 crore. This included an exceptional expense of ₹29.33 crore related to stamp duty and associated expenses for the merger of ISMT Limited into Kirloskar Ferrous Industries Limited. Tax expense for continuing operations was ₹25.77 crore.

*EBITDA derived as Profit before tax + Finance costs + Depreciation + Exceptional items.

Standalone net profit was ₹7.19 crore, compared to ₹7.94 crore in Q2FY25. Standalone total income was ₹16.68 crore, comprising interest income of ₹9.18 crore and other income of ₹5.35 crore.

Board Appointment and Postal Ballot

The company appointed Sandeep Gokhale as an Additional Non-Executive Independent Director with effect from September 1, 2026. His five-year term ends on August 31, 2031, subject to shareholder approval via postal ballot. Gokhale, aged 64, holds a Bachelor of Engineering degree and an MBA in Finance. He currently serves as an Advisor to the JSW Group.

Gokhale brings nearly 40 years of experience across engineering, financial services, and natural resources sectors. He previously served as Group President – Business Development at JSW Group from 2009 to March 2022. He is not related to any existing director and holds no shares in the company.

The company dispatched the Postal Ballot Notice electronically on September 4, 2026, seeking approval for his appointment as an Independent Director for a first term of five consecutive years. The remote e-voting period commences on September 5, 2026, at 9:00 am and ends on October 4, 2026, at 5:00 pm. The results will be announced on or before October 6, 2026.

The cut-off date for determining voting rights is Friday, August 28, 2026. The notice has been sent only in electronic form to members whose names appear in the Register of Members or List of Beneficial Owners as on this date and who have registered email addresses with the company, Registrar and Share Transfer Agent, or Depositories. No hard copies of the notice were dispatched.

Mrs. Manasi Paradkar, Practicing Company Secretary based in Pune (Membership No. FCS 5447 CP No. 4385), has been appointed as the Scrutinizer to conduct the postal ballot remote e-voting process in a fair and transparent manner. The voting facility is provided through National Securities Depository Limited (NSDL).

What the Numbers Show

The consolidated profit decline was significantly influenced by non-recurring costs. The ₹29.33 crore exceptional item for the ISMT merger reduced reported net profit by approximately 37% compared to the prior year's comparable segment profit before exceptional items. Excluding this one-time cost, adjusted profit before tax from continuing operations would have been ₹134.30 crore, broadly in line with the ₹132.57 crore reported in Q2FY25.

Other comprehensive income surged to ₹2,392.79 crore, driven largely by gains on fair valuation of quoted equity investments (₹2,792.68 crore), partially offset by income tax expenses of ₹399.18 crore. This volatility in OCI contrasts with the stable operating performance, highlighting the significant impact of investment revaluation on total comprehensive income.