Kirloskar Oil Engines has issued a postal ballot notice seeking shareholder approval to increase its employee stock option grant pool ceiling by 1,00,000 options. The amendment expands the total limit from 14,00,000 to 15,00,000 equity shares under the Kirloskar Oil Engines Limited – Employee Stock Option Plan 2019 (KOEL ESOP 2019).

The company disclosed that the existing grant pool of 14,00,000 stock options has been fully utilized. Shareholders holding shares as on the cut-off date of August 14, 2026, are eligible to vote via remote e-voting through National Securities Depository Limited (NSDL). The voting window commences on August 22, 2026, at 9:00 am and concludes on September 20, 2026, at 5:00 pm.

Key Details of the Proposal

The increase in the ESOP pool is designed to help the company attract and retain talent by aligning employee interests with shareholder value. The Nomination and Remuneration Committee recommended the amendment to the Board of Directors.

Eligible beneficiaries include employees working in India or abroad, non-promoter directors, and employees of subsidiary companies, excluding those engaged in financial services such as Arka Fincap Limited. Promoters, directors holding more than 10% equity, and independent directors are excluded from the scheme.

Scheme Features

The KOEL ESOP 2019 involves a new issue of shares upon exercise of options, with no trust involvement. Key terms of the plan remain unchanged except for the increased ceiling:

• Vesting Period: Minimum of one year and maximum of four years from the date of grant.
• Exercise Price: Granted at a discount of up to 40% to the latest available closing price on the stock exchange.
• Exercise Period: Commences from vesting and expires no later than three years from the date of vesting.
• Lock-in: No lock-in period applies to shares allotted upon exercise, subject to insider trading regulations.

The company appointed Mrs. Manasi Paradkar, Practicing Company Secretary, as the scrutinizer for the postal ballot process. Results will be declared on or before September 22, 2026.

Kirloskar Oil Engines has outlined an ambitious long-term revenue target of $2 billion by FY30, underscoring its commitment to sustainable growth and improved profitability. The company is simultaneously focused on achieving higher EBITDA margins as part of its broader strategic roadmap, signalling a clear intent to scale operations while maintaining financial discipline.

Strategic Revenue and Margin Targets

The company's $2 billion revenue aspiration by FY30 reflects a significant growth trajectory, with management emphasising that margin expansion remains a core priority alongside top-line growth. Kirloskar Oil Engines has identified higher EBITDA margins as a key performance benchmark, reinforcing its focus on operational efficiency and value creation.

Navigating Global Business Challenges

Despite headwinds from global business issues, Kirloskar Oil Engines has reaffirmed its commitment to meeting its EBITDA goals for the current year. The company's management has indicated that profit levels are expected to improve in upcoming quarters, with the anticipated uptick attributed to two primary levers:

• Pricing changes aimed at improving revenue realisation
• Cost management efforts designed to protect and expand margins

This dual approach of revenue optimisation and cost discipline reflects the company's strategy to sustain profitability even amid an uncertain global operating environment.

Outlook

Kirloskar Oil Engines' focus on its EBITDA targets, combined with its long-term $2 billion revenue goal, positions the company on a defined growth path through FY30. The expected profit improvement in upcoming quarters, driven by pricing adjustments and cost controls, underscores management's confidence in navigating near-term global challenges while staying aligned with its strategic objectives.