Kirloskar Oil Engines (KIRLOSENG) Q3 25/26 earnings summary

Executive summary

• Achieved record Q3 and year-to-date sales, with strong double-digit growth across all business segments, including highest-ever quarterly sales in Industrial and Distribution & Aftermarket units.

• Strategic restructuring included the transfer of the B2C business to a wholly owned subsidiary, now classified as discontinued operations in standalone results, with no impact on consolidated results.

• Standalone and consolidated unaudited financial results for the quarter and nine months ended 31st December 2025 were approved and released, with a limited review by statutory auditors confirming no material misstatements.

• An interim dividend of ₹2.50 per equity share (125% of face value) was declared, with a record date of 20th February 2026 and payment by 12th March 2026.

Financial highlights

• Standalone Q3 FY26 sales reached ₹1,388.61 Cr, up 35% year-on-year; EBITDA at ₹169 Cr, up 59% year-on-year; EBITDA margin improved to 12.2%.

• Consolidated Q3 FY26 revenue was ₹1,882.57 Cr, up 29% year-on-year; consolidated net profit at ₹67.89 Cr; nine months revenue: ₹5,642.00 Cr; net profit: ₹407.24 Cr.

• Net profit (excluding exceptional items) was ₹102 Cr, up 80% year-on-year; cash position net of debt at ₹348 Cr.

• EPS (consolidated, Q3): ₹4.91; nine months: ₹28.63.

• Total comprehensive income (consolidated, Q3): ₹66.81 Cr; nine months: ₹440.21 Cr.

Outlook and guidance

• Management reiterated a five-year strategy to reach $2 billion revenue by FY2030, focusing on advanced products, aftermarket, and exports to drive margin improvement.

• CapEx plan of ₹700 Cr underway to support operational ramp-up and future growth.

• The company continues to monitor regulatory developments, especially regarding the New Labour Codes, and will assess future accounting implications as guidance emerges.