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

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.

Kirloskar Oil Engines Limited has continued its employee incentivization program with another round of equity share allotments under its Employee Stock Option Plan. The company's Stakeholders Relationship Committee approved the latest allotment on January 5, 2026, further expanding the company's share capital structure.

Latest ESOP Allotment Details

The Stakeholders Relationship Committee, in its meeting held on January 5, 2026, approved the allotment of 9,185 fully paid-up equity shares, each with a face value of ₹2.00. This allotment was executed under the 'Kirloskar Oil Engines Limited – Employee Stock Option Plan 2019' (KOEL ESOP 2019). The committee meeting commenced at 3:00 PM and concluded at 3:38 PM.

Updated Share Capital Structure

The recent allotment has resulted in further changes to KOEL's share capital composition:

Cumulative Impact of ESOP Allotments

With this latest development, Kirloskar Oil Engines has now completed multiple rounds of ESOP allotments. The company previously allotted 36,279 shares in November, and this recent allotment of 9,185 shares demonstrates the ongoing implementation of its employee stock option program.

Strategic Benefits of ESOP Implementation

The continued execution of the ESOP program serves several strategic objectives:

Regulatory Compliance and Transparency

Kirloskar Oil Engines has maintained its commitment to regulatory compliance by promptly informing both BSE (Scrip Code: 533293) and NSE (Scrip Code: KIRLOSENG) about this development. The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, demonstrating the company's adherence to transparency standards.

Conclusion

The systematic implementation of the ESOP 2019 scheme reflects Kirloskar Oil Engines' strategic approach to employee engagement and capital structure management. These regular allotments under the employee stock option plan continue to strengthen the alignment between employee interests and company performance while gradually enhancing the equity base.