Kirloskar Industries files FY26 BRSR with reduced energy use
Kirloskar Industries Limited submitted its FY26 Business Responsibility and Sustainability Report to Indian stock exchanges, detailing improved environmental efficiency with lower energy consumption and emissions. The report, independently assured by BDO India, underscores robust governance, inclusive workforce practices, and sustainable achievements by its subsidiary Avante Spaces Limited, alongside continued focus on MSME sourcing and employee skilling through CSR.
*this image is generated using AI for illustrative purposes only.
Kirloskar Industries Limited (KIL) has submitted its Business Responsibility and Sustainability Report (BRSR) for the financial year ended March 31, 2026, to the Bombay Stock Exchange (BSE) and the National Stock Exchange of India Limited (NSE). Filed on July 23, 2026, pursuant to Regulation 34(2)(f) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the report details the company’s standalone performance across all nine National Guidelines on Responsible Business Conduct (NGRBC) principles. The disclosures are supported by independent reasonable assurance from BDO India Services Private Limited, validating the reliability of core sustainability indicators for the period from April 1, 2025, to March 31, 2026.
Environmental Performance and Efficiency
As an unregistered Core Investment Company primarily engaged in investing in group companies and leasing properties, KIL maintains a limited direct environmental footprint. However, the company reported significant improvements in resource efficiency during FY26. Total energy consumption from non-renewable sources declined by approximately 31% year-on-year, dropping from 253.10 GJ in FY25 to 174 GJ in FY26. There was no consumption of renewable energy in either year.
Greenhouse gas (GHG) emissions also saw a marked reduction. Scope 1 emissions fell from 10.27 metric tonnes of CO2 equivalent in FY25 to 7.35 metric tonnes in FY26. Similarly, Scope 2 emissions decreased from 22.73 metric tonnes to 13.69 metric tonnes. Water consumption stood at 163 kiloliters in FY26, up from 11.08 kiloliters in FY25, though the company noted that water usage is shared with group companies and total withdrawal is negligible. Waste management practices remained robust, with all 0.86 metric tonnes of waste generated in FY26 being recycled, resulting in zero waste disposed via incineration or landfilling.
| Environmental Metric | FY26 | FY25 |
|---|---|---|
| Non-Renewable Energy Consumption (GJ) | 174 | 253.10 |
| Scope 1 Emissions (Metric Tonnes CO2e) | 7.35 | 10.27 |
| Scope 2 Emissions (Metric Tonnes CO2e) | 13.69 | 22.73 |
| Water Consumption (Kiloliters) | 163 | 11.08 |
| Waste Generated (MT) | 0.86 | 0.348 |
| Waste Recycled (MT) | 0.862 | 0.348 |
Governance and Human Capital
KIL’s governance framework is anchored in Board-approved policies covering ethics, human rights, and risk management. The company reported zero instances of fines, penalties, or complaints related to bribery, corruption, or conflict of interest during FY26. A materiality reassessment conducted by an independent third-party agency identified eleven key material issues, including Corporate Governance, Climate Change, and Human Rights.
The workforce remained small but inclusive, with 22 employees as of March 31, 2026 (21 permanent, one other-than-permanent). Women constituted 25% of the Board of Directors (three out of 12 members) and 50% of Key Managerial Personnel (two out of four). All employees received training on human rights issues, and 76% underwent performance and career development reviews. The company maintained a 100% return-to-work and retention rate for permanent employees who availed parental leave.
Subsidiary Achievements and Value Chain
Avante Spaces Limited, KIL’s wholly-owned subsidiary, achieved notable sustainability milestones. Its maiden commercial project, ‘One Avante’, received Platinum Certification from the Indian Green Building Council (IGBC) and three ISO certifications: ISO 9001:2015 (Quality), ISO 14001:2015 (Environmental), and ISO 45001:2018 (Occupational Health & Safety). Avante also received a Diamond Award for water management excellence from iNFHRA. Its second project, ‘Infinia’, has received Platinum pre-certification from both USGBC and IGBC.
On the value chain front, KIL conducted a BRSR Core Value Chain Workshop for key suppliers, covering 86% of relevant partners. While complete BRSR Core-aligned data could not be obtained from suppliers due to their developing ESG capabilities, the company is strengthening engagement processes. Input material sourced directly from MSMEs and small producers accounted for 14.10% of total inputs by value in FY26, an increase from 10.19% in FY25.
CSR Initiatives
CSR remains applicable to KIL under Section 135 of the Companies Act, 2013, with a turnover of ₹127 crore. The company sponsored 151 students for employability-oriented education through the S.L. Kirloskar CSR Foundation. Notably, 43% of these beneficiaries were girls, including 10 orphans and 9 single-parent households, while 73% were from Affirmative Action backgrounds. All six shareholder complaints received during the year were resolved, leaving nil pending at year-end.
Historical Stock Returns for Kirloskar Industries
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.87% | -0.01% | -1.41% | +21.76% | -2.52% | +167.48% |
How might Avante Spaces' success in securing Platinum IGBC and USGBC certifications influence KIL's broader real estate portfolio strategy and valuation multiples?
What specific initiatives is KIL planning to implement to transition its energy consumption from non-renewable sources to renewable alternatives in the coming fiscal years?
Given the current limitations in obtaining BRSR Core-aligned data from suppliers, what timeline or incentives has KIL established to improve ESG reporting compliance across its value chain?
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