Kirloskar Oil Engines Limited (KOEL) has reported a stellar performance for the second quarter of FY2026, with revenue crossing the INR 1,500 crore mark for the first time. The company's robust growth was driven by strong performances across all business units, particularly in the Power Generation and Industrial segments.

Key Financial Highlights

Segment-wise Performance

Power Generation

The Power Generation business unit anchored the company's performance, delivering a strong 41% year-on-year growth in sales and achieving its highest ever quarterly revenue of INR 678.00 crores. This robust performance further strengthens KOEL's market leadership position.

Industrial Business

The Industrial business unit also delivered a strong performance with 40% year-on-year sales growth, driven by healthy traction in both defense and railways sectors. The company's Defense business continued its positive trajectory, supported by emergency procurement orders and steady progress on key strategic programs.

International Business Growth

KOEL's international business demonstrated strong diversification and strategic progress:

• Overall International B2B sales grew by 39% year-on-year
• B2C sales registered a 77% year-on-year increase
• Exports for the first half of the year exceeded INR 320.00 crores, reflecting broad-based strength across markets

Strategic Initiatives

The company has recently announced the restructuring of its B2C business, which will be transferred to its wholly-owned subsidiary, LGM, by way of slump sale. This move aims to:

• Maintain dedicated focus on each segment
• Drive greater efficiency through structures best suited to their respective customer needs

Management Commentary

Gauri Kirloskar, Managing Director of KOEL, commented on the results:

"Q2 has been a strong quarter for KOEL with net sales crossing the INR 1,500 crore mark for the first time. I would like to congratulate the entire KOEL team on achieving this new milestone."

She added, "We remain focused on the planned rollout of our products in Q3 FY '26, which we expect will further enhance our competitive position across the domestic power generation business."

Outlook

The management remains optimistic about the coming quarters, citing:

• Healthy market demand
• Encouraging results across key product segments
• Positive reception of new product launches
• Steady progress on strategic priorities outlined in the 2B2B vision

With a strong performance in the first half of FY2026 and a positive outlook for the future, Kirloskar Oil Engines appears well-positioned to capitalize on growth opportunities in both domestic and international markets.

Kirloskar Oil Engines Limited (KOEL), a leader in manufacturing internal combustion engines and generator sets, has announced the appointment of Mr. Srikumar Vijayasekharan as an Additional Non-Executive Director in the capacity of Independent Director. The appointment, effective from November 11, 2025, is for a five-year term, subject to shareholder approval.

Key Highlights of the Appointment

• Term: Five-year tenure starting November 11, 2025
• Approval: Subject to member approval
• Age: 64 years
• Professional Background: Chartered Accountant with over 40 years of experience
• Previous Role: Chief Operating Officer of Deloitte South Asia (2015-2023)
• Current Position: Independent Director on the Board of Arka Fincap Limited

Professional Experience

Mr. Vijayasekharan brings a wealth of experience to KOEL's board:

• Extensive Audit Experience: Specializes in audit and assurance services across various sectors including manufacturing, financial services, healthcare, technology, and consumer business.
• Leadership at Deloitte: Served as COO of Deloitte South Asia from 2015 to 2023, overseeing significant growth.
• Operational Expertise: Responsible for finance, IT, infrastructure, business plans, strategy implementation, and succession planning at Deloitte South Asia.

Impact on KOEL

The appointment of Mr. Vijayasekharan may strengthen KOEL's board with his extensive experience in finance, operations, and governance. His background in various industries aligns well with KOEL's diverse business interests in engines, generator sets, and agricultural equipment.

Governance Implications

• Board Independence: The addition of Mr. Vijayasekharan as an Independent Director may enhance the board's oversight and governance structure.
• Compliance: The appointment is in line with regulatory requirements for board composition in listed companies.

Additional Information

• Mr. Vijayasekharan holds no shares in Kirloskar Oil Engines Limited.
• He is not related to any existing board member of the company.

The appointment of Mr. Srikumar Vijayasekharan appears to be a strategic move by Kirloskar Oil Engines Limited to strengthen its board with diverse and experienced leadership as the company continues to navigate the evolving business landscape.