Kirloskar Oil Engines (KIRLOSENG) Q2 26/27 earnings summary

Executive summary

• Q2 consolidated revenue from operations was ₹2,284.04 crore, up 17% YoY; continuing-operations PAT was ₹130.31 crore, down 18%.

• Standalone continuing-operations sales rose 19% to ₹1,722.5 crore, while EBITDA fell 6% and PAT fell 14%.

• PowerGen, distribution and aftermarket, and international operations supported growth; input-cost inflation pressured margins.

Financial highlights

• Consolidated Q2 net sales were ₹2,257.1 crore, up 17% YoY; H1 net sales rose 15% to ₹4,239.9 crore. Consolidated H1 revenue was ₹4,283.75 crore.

• Consolidated continuing-operations PAT was ₹130.31 crore in Q2, down 18%, and ₹241.37 crore in H1, down 18%.

• Standalone Q2 EBITDA was ₹191.1 crore, down 6%, with an 11.0% margin versus 14.0%; H1 EBITDA was ₹356.6 crore, down 5%, with an 11.1% margin versus 13.8%.

• Standalone continuing-operations PAT was ₹115.17 crore in Q2, down 14%, and ₹214.48 crore in H1, down 12%.

Segment performance

• Q2 B2B revenue grew 20% to ₹1,745.28 crore; segment result was ₹147.59 crore, down 10%.

• Q2 B2C revenue rose 28% to ₹330.18 crore; segment result increased 26% to ₹22.87 crore.

• Financial Services Q2 revenue declined 11% to ₹208.58 crore; segment result fell 82% to ₹6.05 crore.

• PowerGen revenue was ₹792 crore, up 17%; distribution and aftermarket grew 29% to ₹293 crore, and fluid dynamics rose 28% to ₹331 crore.

• International business reached ₹413 crore on a gross consolidated basis, up 59%; standalone international revenue was ₹257 crore, up 50%.