NewsEarningsKirloskar Oil Engines Achieves Record Q2 Revenue, Driven by Strong Growth Across SegmentsKirloskar Oil Engines Achieves Record Q2 Revenue, Driven by Strong Growth Across Segments
Kirloskar Oil Engines Limited (KOEL) achieved record-breaking performance in Q2 FY2026, with revenue exceeding INR 1,500 crore for the first time. Net sales reached INR 1593.00 crore, a 35% YoY growth. EBITDA grew 45% to INR 214.00 crore, with net profit up 44% to INR 141.00 crore. The Power Generation segment led growth with 41% YoY increase, while the Industrial business saw 40% YoY growth. International B2B sales rose 39% YoY, with B2C sales up 77%. The company announced restructuring of its B2C business to enhance focus and efficiency. Management remains optimistic about future growth, citing healthy market demand and progress on strategic priorities.
*this image is generated using AI for illustrative purposes only.
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
| Metric | Q2 FY2026 | YoY Growth |
|---|---|---|
| Net Sales | 1593.00 | 35% |
| EBITDA | 214.00 | 45% |
| Net Profit | 141.00 | 44% |
| EBITDA Margin | 13.40% | 100 bps |
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.
Historical Stock Returns for Kirloskar Oil Engines
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -3.29% | -3.08% | +4.47% | +39.32% | +16.54% | +793.57% |
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