Kirloskar Oil Engines Limited released the transcript of its Q3 FY26 earnings conference call held on February 12, 2026, providing detailed insights into the company's record-breaking quarterly performance and strategic initiatives across business segments.

Conference Call Highlights and Leadership

The earnings call was hosted by Antique Stock Broking Limited and featured key management personnel including Ms. Gauri Kirloskar (Managing Director), Mr. Rahul Sahai (CEO), Mr. Sachin Kejriwal (CFO), Mr. Kiran Bhagnur Khapre (CHRO), and Ms. Farah Irani (Company Secretary). The call discussed the company's highest ever third quarter sales and year-to-date performance.

Business Performance Overview

Managing Director Gauri Kirloskar highlighted that Q3 FY26 delivered the company's highest ever third quarter sales, achieving 35% year-on-year sales growth and 25% year-to-date growth. The performance was driven by double-digit growth across all business segments, with particular strength in domestic Power Generation and Industrial businesses.

High Horsepower Segment Momentum

The High Horsepower (HHP) segment emerged as a standout performer with substantial growth of 235% over the previous year. CEO Rahul Sahai explained that the company's HHP products now range from 1,000 kVA to 3,000 kVA, with demand primarily driven by infrastructure developments including commercial, residential, and data centre applications.

Strategic Initiatives and Market Expansion

The management discussed several strategic developments including the incorporation of Kirloskar Advanced Systems Limited for specialized government work in Defence and Railways. The company also outlined its international expansion strategy, with focused efforts in Middle East, Africa, and ongoing investments in the U.S. market through Kirloskar Americas subsidiary.

Financial Services and Subsidiary Performance

Arka Fincap, the financial services subsidiary, reported revenue of ₹227 crores with 7% year-on-year growth. Managing Director Samrat Gupta detailed the company's strategy of granularizing the loan book through retail portfolio development, with current Assets Under Management at ₹7,600 crores and maintaining healthy asset quality metrics.

Operational Excellence and Future Outlook

CFO Sachin Kejriwal emphasized the company's improved operational efficiency, with EBITDA margins expanding and working capital management showing positive trends. The management expressed confidence in sustaining growth momentum while maintaining focus on margin improvement through strategic product positioning and market expansion initiatives.

Kirloskar Oil Engines Limited (KOEL), a leader in manufacturing internal combustion engines and generator sets, has successfully completed the postal ballot process for the appointment of Mr. Srikumar Vijayasekharan as an Independent Director. The shareholders have approved the special resolution, confirming his appointment effective from November 11, 2025.

Postal Ballot Results

The company announced the successful completion of the postal ballot process based on the Scrutinizer's Report on voting results. The appointment follows the regulatory framework under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Director Appointment Details

Mr. Srikumar Vijayasekharan's appointment as Additional Non-Executive Director in the capacity of Independent Director brings significant expertise to KOEL's board:

Professional Background

Mr. Vijayasekharan brings extensive experience across multiple domains:

• Leadership Experience: Served as COO of Deloitte South Asia, overseeing significant growth where the firm expanded over four times during his tenure
• Operational Expertise: Responsible for finance, IT, infrastructure, business plans, strategy implementation, and succession planning
• Industry Experience: Specializes in audit and assurance services across manufacturing, financial services, healthcare, technology, and consumer business sectors
• Board Experience: Currently serves as Independent Director on Arka Fincap Limited's board

Governance and Compliance

The postal ballot process ensured compliance with regulatory requirements:

• Electronic Voting Only: In compliance with MCA circulars, voting was conducted only through remote e-voting
• Scrutinizer Appointment: Mrs. Manasi Paradkar, Practicing Company Secretary, was appointed as scrutinizer
• Independence Criteria: Mr. Vijayasekharan meets the criteria for independence under Section 149(6) of the Companies Act, 2013
• Committee Membership: He has been appointed as Audit Committee Member effective December 12, 2025

Shareholding and Related Information

• Mr. Vijayasekharan holds no equity shares in Kirloskar Oil Engines Limited
• He is not related to any existing board member of the company
• The appointment strengthens the board's independence and governance structure

The successful appointment of Mr. Srikumar Vijayasekharan represents a strategic move by Kirloskar Oil Engines Limited to enhance its board composition with experienced leadership. The company has formally communicated the approval to both BSE and NSE, completing all regulatory requirements for the appointment.