Kirloskar Oil Engines Limited announced its unaudited financial results for the quarter and nine months ended December 31, 2025, demonstrating robust operational performance across both standalone and consolidated operations. The company's Board of Directors approved the results in their meeting held on February 11, 2026.

Standalone Financial Performance

The company's standalone operations showed strong growth during Q3 FY26, with revenue from operations reaching ₹1,380.61 crores compared to ₹1,024.35 crores in the corresponding quarter of the previous year.

For the nine months ended December 31, 2025, standalone revenue from operations stood at ₹4,112.12 crores compared to ₹3,284.52 crores in the previous year, while net profit increased to ₹349.92 crores from ₹310.80 crores.

Consolidated Financial Results

The consolidated financial performance reflected the company's diversified business portfolio across multiple segments including B2B, B2C, and Financial Services.

Segment Performance Analysis

The company operates through three primary segments at the consolidated level:

Business to Business (B2B): Revenue of ₹1,396.15 crores in Q3 FY26, up from ₹1,027.11 crores in Q3 FY25. This segment includes production, sales and services of Engines, Gensets, Electric Motors, spare parts, oils, and Farm Machines.

Business to Customer (B2C): Generated revenue of ₹249.39 crores compared to ₹210.59 crores in the previous year quarter. This segment comprises production, assembly, sales and services of Diesel or Electric operated Pumps & pumpsets and allied products.

Financial Services: Contributed ₹227.06 crores in revenue versus ₹211.61 crores in Q3 FY25, operating through wholly owned NBFC subsidiaries.

Interim Dividend Declaration

The Board of Directors declared an interim dividend of ₹2.50 per equity share of ₹2.00 each, representing 125% of the face value for Financial Year 2025-26.

Corporate Actions and Capital Changes

The company approved the allotment of 9,074 fully paid-up equity shares of ₹2.00 each upon exercise of Employee Stock Options under the KOEL ESOP 2019 plan.

Exceptional Items Impact

The results were affected by exceptional items of ₹20.08 crores in standalone operations and ₹23.01 crores in consolidated operations. These charges relate to the estimated incremental liability of employee benefit obligations resulting from the implementation of New Labour Codes, which became effective November 21, 2025. The New Labour Codes consolidate 29 existing labour laws into four comprehensive codes covering wages, industrial relations, social security, and occupational safety.

Business Restructuring

During the quarter, the company completed the transfer of its B2C business segment (Water Management Solutions) to its wholly owned subsidiary KOEL Fluid Dynamics Private Limited through a slump sale arrangement effective October 11, 2025. This transaction involved net assets of ₹18.08 crores and was structured as an internal reorganization with no impact on consolidated results.

Kirloskar Oil Engines Limited has received a substantial acquisition disclosure from promoter Geetanjali Vikram Kirloskar under SEBI Regulation 29(2) of the Substantial Acquisition of Shares and Takeovers Regulations, 2011. The disclosure pertains to the acquisition of 200 additional equity shares through open market transactions.

Transaction Details

The acquisition was executed on December 18, 2025, through open market purchases. Geetanjali Vikram Kirloskar, who is classified as a promoter group member, submitted the mandatory disclosure filing on December 19, 2025 from France.

Share Capital Information

The company's equity share capital structure shows the total equity share capital at ₹82.43 crores, comprising 16,48,55,383 equity shares with a face value of ₹5.00 each. The acquisition represents a minimal percentage of the total shareholding.

Regulatory Compliance

The disclosure was filed in accordance with SEBI regulations governing substantial acquisitions by promoters and persons acting in concert. Geetanjali Vikram Kirloskar, based at Kirloskar Residency, Bellary Road, Kirloskar Business Park, Hebbal, Bengaluru, submitted the filing as per regulatory requirements.

This acquisition represents part of the ongoing shareholding activities by the promoter group in Kirloskar Oil Engines. The disclosure ensures transparency and compliance with market regulations regarding share transactions by key stakeholders.