Kirloskar Oil Engines (KIRLOSENG) Q2 25/26 earnings summary

Executive summary

• Achieved record quarterly and half-year sales and profit growth, with consolidated Q2 FY26 net sales reaching ₹1,948.38 crore, up 30% year-on-year, and net profit rising to ₹159.19 crore.

• Power Generation and Industrial segments led growth, supported by strong domestic and export momentum.

• Strategic restructuring of B2C operations completed, transferring business to a wholly owned subsidiary.

• Standalone and consolidated unaudited financial results for the quarter and half year ended 30th September 2025 were approved and reviewed by the Board and auditors, with no material misstatements noted.

• The group completed significant business transfers and made strategic investments in subsidiaries during the period.

Financial highlights

• Standalone Q2 FY26 net sales rose 35% YoY to ₹1,593 crore; EBITDA up 29% YoY to ₹214 crore; PAT up 44% YoY to ₹141 crore.

• Consolidated Q2 FY26 net sales up 30% YoY to ₹1,948.38 crore; PAT up 51% YoY to ₹159.19 crore.

• Standalone H1 FY26 net sales up 20% YoY to ₹3,027 crore; EBITDA up 11% YoY to ₹405 crore; PAT up 23% YoY to ₹264 crore.

• Consolidated H1 FY26 net sales up 19% YoY to ₹3,712.18 crore; PAT up 4% YoY to ₹293.37 crore.

• Earnings per share (consolidated, basic) for Q2 FY26 was ₹11.18, up from ₹8.78 in Q2 FY25.

Outlook and guidance

• Management remains optimistic about sustained demand in domestic and international markets, focusing on new product launches, technology diversification, and expanding secured granular retail business in financial services.

• Expect continued growth in Power Generation, Industrial, and Fluid Dynamics segments, with margin improvement opportunities from product mix and exports.

• North America market entry is in early stages; meaningful returns expected over the medium to long term.

• The company reorganized its Farm Mechanization Solutions from B2C to B2B to improve synergy and transferred the B2C Water Management Solutions business to a subsidiary post-quarter.