Kirloskar Oil Engines has announced its audited financial results for the quarter and year ended March 31, 2026, delivering record-breaking standalone quarterly net sales of ₹1,522 crore, marking a 24% year-on-year growth. For the full financial year, standalone net sales grew by 25% to ₹5,604 crore. The Board of Directors has recommended a final dividend of ₹4.50 per equity share (225%) of face value ₹2 each, subject to shareholder approval. This is in addition to an interim dividend of ₹2.50 per share already paid, bringing the total dividend for the year to 350%. In its post-results concall, management outlined an ambitious growth roadmap, targeting $2 billion in revenue by fiscal year 2030.

Standalone Financial Performance

On a standalone basis, the company reported strong growth across key metrics for the year ended March 31, 2026. Net profit for the full year stood at ₹461.02 crore compared to ₹431.93 crore in the previous year. Profit before exceptional items and tax for the year was ₹623.59 crore versus ₹502.76 crore previously. The EBITDA margin improved to 13.10% from 12.20% in the prior year. Exceptional items for the year amounted to an expense of ₹29.68 crore, relating to the incremental impact of the New Labour Codes notified by the Government of India on November 21, 2025. Total Comprehensive Income for the year from continuing and discontinued operations stood at ₹462.20 crore on a standalone basis.

The following table summarises the key standalone financial metrics:

Post the transfer of the B2C business segment effective October 11, 2025, the standalone operations are classified under the B2B segment only. For the year ended March 31, 2026, discontinued operations contributed revenue from operations and other income of ₹318.07 crore and a profit after tax of ₹19.52 crore on a standalone basis. Standalone reserves (excluding Revaluation Reserve) as shown in the audited balance sheet stood at ₹3,325.43 crore as at March 31, 2026, with paid-up equity share capital at ₹29.07 crore.

Consolidated Financial Performance

At the consolidated level, the company reported robust growth for the year ended March 31, 2026. Revenue from operations rose to ₹7,701.01 crore from ₹6,329.14 crore in the previous year. Consolidated net profit for the year stood at ₹562.46 crore compared to ₹475.82 crore previously. Profit attributable to owners of the Company for the year was ₹574.32 crore versus ₹489.15 crore in the prior year. Total Comprehensive Income on a consolidated basis for the year stood at ₹594.58 crore. The consolidated balance sheet reflects total assets of ₹10,852.44 crore as at March 31, 2026, with consolidated reserves (excluding Revaluation Reserve) at ₹3,591.12 crore.

The following table summarises the key consolidated financial metrics:

| Metric: | Q4 FY26 | Q4 FY25 | YoY | FY26 | FY25 | YoY | | ---: | :--- | :--- | :--- | | Revenue from Operations (₹ Cr): | 2,116 | 1,749 | 21% | 7,701 | 6,329 | 22% | | PAT (₹ Cr): | 162 | 111 | 47% | 582 | 416 | 40% | | Total Comprehensive Income (₹ Cr): | 154.37 | 125.46 | — | 594.58 | — | — | | Basic EPS (₹): | 10.91 | 9.03 | — | 39.53 | — | — | | Diluted EPS (₹): | 10.86 | 9.01 | — | 39.38 | — | — |

Growth Guidance and Capital Expenditure Plans

During the post-results investor conference call, management shared key guidance on the company's long-term growth strategy. Kirloskar Oil Engines is progressing towards its goal of becoming a $2 billion company by fiscal year 2030. To support this ambition, management plans to invest approximately INR 1,400 crores in capital expenditure over the next two years (FY27 and FY28) for capacity augmentation.

The following table outlines the key details of the planned capital expenditure:

The INR 1,400 crore CapEx is specifically earmarked for a new building and new production lines at the Kagal plant, primarily for High Horsepower capacity enhancement, while also supporting international market traction. Management indicated that this new CapEx is expected to yield an asset turn in the range of 4 to 5, potentially generating INR 5,000–6,000 crores in peak revenue. Separately, the previously announced INR 700 crores CapEx for 50,000 engines is expected to be online by April of next year.

Key Corporate Developments

During the year, the Board approved the transfer of the company's B2C business segment — Water Management Solutions (WMS) Domestic & Exports Business — by way of slump sale to its wholly owned subsidiary, KOEL Fluid Dynamics Private Limited, effective October 11, 2025. Additionally, the company incorporated a new wholly owned subsidiary, Kirloskar Advanced Systems Private Limited, with effect from March 30, 2026, with an initial investment of up to ₹9 crore. During the quarter ended March 31, 2026, the company allotted 27,795 fully paid-up equity shares of ₹2 each under the KOEL Employee Stock Option Plan 2019, increasing paid-up equity share capital to 14,53,59,209 shares.

Investor Conference Call

Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company held a conference call for investors and analysts on May 14, 2026, at 7:00 p.m. IST to discuss the audited financial results for the quarter and year ended March 31, 2026. The results were reviewed and recommended by the Audit Committee and approved by the Board of Directors in their respective meetings held on May 14, 2026, and are audited by the Statutory Auditors of the Company. The audio recording of the conference call is available on the company's website.

Kirloskar Oil Engines Limited has received a declaration from its promoter group confirming that no shares held by them were encumbered during the financial year ended March 31, 2026. The disclosure, submitted by Atul Kirloskar on behalf of the promoter group, was made in compliance with Regulation 31(4) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The company has been requested to communicate this declaration at its next Audit Committee meeting.

Promoter Shareholding Details

The declaration covers the shareholding status of the promoter group as of March 31, 2026. The data indicates that none of the shares held by the promoters or promoter group members have been pledged or encumbered. The total promoter group holding includes significant stakes held by key individuals and group entities.

Key Individual Holdings

Atul C Kirloskar holds the largest individual stake within the promoter group. His total holding of 1,46,74,947 shares represents 10.10% of the company's total equity shares. This includes shares held in his individual capacity, as a trustee of the C.S. Kirloskar Testamentary Trust, and as karta of the Atul Kirloskar HUF.

Rahul Chandrakant Kirloskar holds 1,77,86,902 shares, accounting for 12.24% of the total shares. His holding comprises individual shares, shares as a trustee of the C.S. Kirloskar Testamentary Trust, and shares as karta of the Rahul Kirloskar HUF.

Shareholding Summary Table

The following table details the holdings of major promoter group members as of March 31, 2026:

Other members of the promoter group, including Sanjay Chandrakant Kirloskar and Suman Chandrakant Kirloskar, hold smaller stakes, with no encumbrances reported. Group entities such as Kirloskar Chillers Private Limited and Navsai Opportunities Private Limited also hold minor stakes, all of which are free from encumbrances.