Kirloskar Oil Engines Limited's wholly owned subsidiary, Kirloskar Americas Corporation, USA, has completed the acquisition of 4,900 units representing a 49% stake in Engines LPG, LLC dba Wildcat Power Gen, USA. The transaction was executed on August 6, 2026 (US time — end of the day), equivalent to August 7, 2026 IST, for a cash consideration of USD 0.15 mn. With this acquisition, Wildcat Power Gen has become a wholly owned subsidiary of Kirloskar Americas Corporation and a step-down subsidiary of Kirloskar Oil Engines Limited.

Acquisition at a Glance

The following table summarises the key parameters of the transaction:

The transaction was carried out on an arm's length basis between Kirloskar Americas Corporation, USA and the existing unitholders of Wildcat Power Gen. Kirloskar Americas Corporation had held a 51% controlling stake in the company since November 29, 2023, and this acquisition consolidates the remaining interest.

About Engines LPG, LLC dba Wildcat Power Gen

Engines LPG, LLC dba Wildcat Power Gen is a US-based genset original equipment manufacturer (OEM) incorporated on August 30, 2013. The company operates as a specialised US OEM providing EPA-certified commercial and industrial generator sets and behind-the-meter power solutions across North America. Its key segments served include data centres, telecom, microgrids, emergency services, rentals and prime power, retail distribution, and utilities. Core product lines include Optiprime and Optiprime Hybrid Power System offerings ranging from 10 kW to 7.2 MW across Natural Gas and Diesel configurations.

The company has reported strong revenue growth over the past three fiscal years, as detailed below:

For FY 2026, Wildcat Power Gen reported a total income of USD 4.71 mn (INR 44.9 Crore), based on the reference exchange rate of 1 USD = 95.3487 INR as of August 4, 2026.

Strategic Rationale

The acquisition of the remaining 49% stake consolidates 100% ownership in Wildcat Power Gen, enabling streamlined governance and swift strategic decision-making under Kirloskar Americas Corporation. The move is intended to facilitate seamless integration of research and development, technology, and global supply chain operations into Wildcat Power Gen. It also provides operational flexibility to directly scale North American expansion activities.

Regulatory and Compliance Details

The disclosure has been made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, including amendments thereunder, and in accordance with SEBI Circular no. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. Approvals from relevant regulatory and statutory authorities, as applicable, are required for the acquisition. The transaction was originally scheduled for completion by September 30, 2026, as intimated vide letter dated August 6, 2026, and has since been completed ahead of schedule.

Kirloskar Oil Engines Limited reported a consolidated net profit of ₹111.06 crore for the quarter ended June 30, 2026, marking a 17% decline from ₹134.18 crore in the corresponding period of the previous fiscal year. Despite the bottom-line contraction, consolidated revenue from operations rose 13% year-on-year to ₹1,999.53 crore, up from ₹1,761.79 crore in Q1FY26. The divergence between top-line growth and profit erosion highlights significant margin pressure, with standalone EBITDA margins compressing primarily due to geopolitical uncertainties impacting exports and elevated operational costs.

The unaudited financial results for Q1FY27 were reviewed by the Audit Committee and approved by the Board of Directors on August 6, 2026. The results are subjected to "Limited Review" by the Statutory Auditors of the Company. Gauri Kirloskar, Vice Chairperson and Managing Director, attributed the performance to broad-based domestic growth across Power Generation, Industrial, and Distribution & Aftermarket businesses, which offset weakness in key export markets. The company emphasized its transformation into a technology-led engineering entity, citing investments in OptiPrime modular power systems and gas-based distributed power as strategic drivers for long-term resilience.

Segment and Operational Performance

The B2B segment, encompassing engines, gensets, and farm machines, remained the primary revenue contributor, generating ₹1,488.4 crore, a 17% increase from ₹1,276.3 crore in Q1FY26. The B2C segment, comprising pumps and pumpsets, saw revenue rise to ₹301.0 crore from ₹291.8 crore. Financial Services, operated through Arka Financial Holdings Private Limited, contributed ₹210.2 crore, up from ₹193.7 crore.

Standalone net sales grew 16% to ₹1,471.30 crore, while standalone net profit fell 9% to ₹99.31 crore from ₹109.53 crore in Q1FY26 (excluding discontinued operations). Standalone EBITDA declined 4% to ₹165.5 crore from ₹171.6 crore, reflecting the impact of calibrated pricing actions and cost optimization efforts against global geopolitical developments.

What the Numbers Show

The compression in standalone EBITDA margin underscores the challenge of translating volume growth into profitability amidst input cost inflation and export headwinds. While the B2B segment delivered strong volume growth, accounting for over 74% of total revenue, the overall group result was weighed down by lower other income and higher finance costs. Consolidated finance costs stood at ₹116.0 crore, and other income dropped sharply to ₹15.2 crore from ₹34.7 crore in the prior year. This indicates that non-operating gains did not replicate previous levels, leaving core operations to absorb fixed costs without sufficient margin cushion.

Export revenues faced significant headwinds, with standalone international sales declining 11% to ₹92 crore from ₹120 crore in Q1FY26. Domestic sales, however, surged 19% to ₹1,369 crore, driven by robust demand in the Powergen and Industrial segments. The company’s working capital position showed an increase in inventories to ₹820 crore (64 days) and payables to ₹950 crore (81 days), indicating potential supply chain adjustments or strategic stockpiling ahead of anticipated demand cycles.

Corporate Developments

During the quarter, Kirloskar Oil Engines incorporated Kirloskar Advanced Systems Private Limited as a wholly owned subsidiary, investing ₹9 crore towards initial equity subscription. It also made a payment of ₹8.28 crore (AED 3.20 million) towards further investment in Kirloskar International ME FZE, its UAE-based subsidiary. The Nomination and Remuneration Committee approved the grant of 2,40,000 employee stock options under the KOEL ESOP 2019 plan, with 36,108 options voluntarily surrendered. The company allotted 20,735 fully paid-up equity shares upon exercise of options, increasing paid-up capital to ₹29.08 crore.