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

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.

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.

Kirloskar Industries shareholders approved all five ordinary resolutions at its 32nd Annual General Meeting (AGM) held on August 18, 2026. The most significant approval was the declaration of a final dividend of ₹13 per equity share, equating to a 130% payout, for the financial year ended March 31, 2026. The meeting also saw the re-appointment of key board members and the renewal of the statutory auditor’s tenure, with voting participation reaching 51.69% of total outstanding shares.

The AGM, conducted via Video Conferencing or Other Audio Visual Means (OAVM), commenced at 11:30 am and concluded at 12:39 pm. Shareholders voted on the adoption of audited standalone and consolidated financial statements for FY26, along with the Board’s Report and Auditors’ Report. All resolutions were passed with the requisite majority as confirmed by the Scrutinizer’s Report from Manasi Paradkar & Associates.

Key Resolutions Passed

The following ordinary resolutions were put to vote and approved by the members:

• Adoption of the Audited Standalone and Consolidated Financial Statements for FY26, along with the Board’s Report and Auditors’ Report.
• Declaration of a dividend of ₹13 per equity share (130%) for FY26.
• Re-appointment of Mr. Vinesh Kumar Jairath as a Director in place of his retirement by rotation.
• Re-appointment of Mr. Anil Alawani as a Non-Executive Director for a period of one year up to the conclusion of the AGM in 2027.
• Re-appointment of M/s. Kirtane & Pandit LLP as Statutory Auditors for a second term of five consecutive years, from the conclusion of the 32nd AGM until the 37th AGM in 2031, including the fixation of remuneration.

Auditor Profile and Tenure

Kirtane & Pandit LLP, established in 1956, is one of the leading accounting and audit firms in India. The firm provides professional services including statutory audit, internal audits, tax advisory, forensic audits, and risk management to over 700 organizations across public, private, banking, insurance, and government sectors. Its re-appointment marks a second consecutive five-year term, extending until the conclusion of the 37th AGM in 2031.

Voting Results Breakdown

The voting process involved remote e-voting and e-voting during the AGM. The promoter and promoter group, holding 7,553,065 shares, cast 5,185,662 votes, representing 68.66% of the total votes polled. Public institutions and non-institutions accounted for the remainder of the participation.

Governance and Compliance

The proceedings were conducted in compliance with Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company adhered to the provisions of the Companies Act, 2013, and various General Circulars issued by the Ministry of Corporate Affairs (MCA), including Circular No. 14/2020, No. 17/2020, No. 20/2020, and Circular No. 03/2025 dated September 22, 2025. Additionally, the process followed SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026.

The results of the e-voting conducted during the AGM and remote e-voting were submitted separately to the stock exchanges, accompanied by the Scrutinizer’s report, in accordance with Regulation 44 of the SEBI LODR Regulations. The Scrutinizer, Manasi Paradkar & Associates, confirmed that all ordinary resolutions were passed with the requisite majority based on votes cast via NSDL’s e-voting platform.