Kirloskar Oil Engines Achieves Record Q2 Performance with 35% Revenue Surge

Kirloskar Oil Engines Limited (KOEL) has reported its strongest quarterly performance to date, with standalone net sales crossing the ₹1,500 crore mark for the first time. The company's financial results demonstrate robust growth across key metrics, signaling a positive trajectory in its operations.

Financial Highlights

Metric	Q2	Q2 Previous Year	YoY Change
Standalone Net Sales	₹1,593.00 crore	₹1,184.00 crore	35%
Standalone Net Profit	₹141.00 crore	₹98.00 crore	44%
EBITDA	₹214.00 crore	₹147.60 crore	45%
EBITDA Margin	13.40%	12.40%	100 bps

Consolidated Performance

On a consolidated basis, Kirloskar Oil Engines reported equally impressive results:

Revenue from continuing operations: ₹1,948.00 crore (30% YoY increase)
Net profit from continuing operations: ₹159.00 crore (51% YoY increase)

Half-Year Performance

The company's strong performance extended to the half-year period as well:

Metric	H1	H1 Previous Year	YoY Change
Standalone Net Sales	₹3,027.00 crore	₹2,518.00 crore	20%
Net Profit	₹264.00 crore	₹215.00 crore	23%

Segment Performance

All segments within the standalone business recorded double-digit growth, with the Power Generation Business Unit showing particularly robust performance. This across-the-board growth underscores the company's strong market position and operational efficiency.

Strategic Restructuring

On October 10th, Kirloskar Oil Engines announced a strategic restructuring initiative, transferring its B2C operations to its wholly-owned subsidiary, La-Gajjar Machineries Private Limited, through a slump sale. This move aligns with the company's goal of reaching a ₹2 billion topline by 2030.

Financial Analysis

Examining the company's income statement data reveals several positive trends:

Revenue Growth: The company's sales have shown consistent growth, with the current quarter reporting sales of ₹1,948.40 crore, a 29.50% increase compared to the same quarter five years ago.
Profitability: Net profit for the quarter stood at ₹159.20 crore, representing a 27.46% increase over the past five years. This growth in profitability outpaces revenue growth, indicating improved operational efficiency.
Operating Margins: The Operating Profit Margin (OPM) for the quarter was 19.59%, slightly lower than the 19.77% reported five years ago. However, it shows improvement compared to recent quarters, suggesting the company is managing its costs effectively despite inflationary pressures.
EBITDA Performance: EBITDA for the quarter reached ₹394.30 crore, a significant 24.42% increase over the past five years, reflecting the company's ability to enhance its operational performance.

Kirloskar Oil Engines' record-breaking quarter demonstrates its resilience and adaptability in a dynamic market environment. The company's strategic initiatives, coupled with strong financial performance across segments, position it well for sustained growth. As KOEL continues to execute its long-term strategy, investors and industry observers will be keenly watching its progress towards its 2030 revenue target.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+2.48%	+9.75%	+22.68%	+50.95%	-1.06%	+979.50%

Kirloskar Oil Engines Limited (KOEL), a leader in the manufacturing of internal combustion engines and generator sets, has reported a decline in its financial performance for the quarter ended September 30, 2025. The company's net profit fell by 34% year-on-year to ₹134.90 crores, while revenue from operations decreased to ₹1,244.65 crores.

Financial Highlights

Metric	Q2 FY26	Q2 FY25	YoY Change
Revenue from Operations	1244.65	1306.01	-4.70%
Net Profit	134.90	204.20	-34.00%

For the half-year period, net profit decreased to ₹258.73 crores from ₹352.53 crores in the previous year.

Key Developments

The company's Board approved the transfer of its Business to Customer (B2C) segment, including Water Management Solutions domestic and export business, to its wholly owned subsidiary La-Gajjar Machineries Private Limited through a slump sale.
KOEL invested $2 million (approximately ₹17.76 crores) in Series A-1 Preferred Stock of its US subsidiary Kirloskar Americas Corporation.
Total assets stood at ₹4,747.19 crores as of September 30, 2025, compared to ₹4,307.50 crores in the previous year.

Financial Position

Despite the decline in quarterly performance, Kirloskar Oil Engines maintains a strong financial position. The increase in total assets indicates ongoing investments.

Strategic Moves

The restructuring of B2C operations through the transfer to La-Gajjar Machineries Private Limited may be part of KOEL's efforts to streamline operations. The investment in Kirloskar Americas Corporation suggests a continued focus on international presence.