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

Executive summary

• Achieved record Q3 and year-to-date sales, with 35% year-on-year quarterly growth and 25% year-to-date growth, driven by double-digit expansion across all business segments.

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

• Standalone and consolidated unaudited financial results for Q3 and nine months ended 31st December 2025 were approved and released, with no material misstatements per statutory auditors.

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

Financial highlights

• Standalone Q3 FY26 net sales reached ₹1,371 crore, up 35% year-on-year; EBITDA at ₹169 crore, up 59% year-on-year; EBITDA margin improved to 12.2%.

• Consolidated Q3 FY26 revenue was ₹1,882.57 crore, up 29% year-on-year; net profit was ₹67.89 crore; nine months revenue was ₹5,642 crore, net profit ₹407.24 crore.

• Standalone net cash position at ₹348 crore as of Q3 FY26; working capital metrics improved with payables at 59 days, receivables at 44 days, and inventory at 66 days.

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

Outlook and guidance

• Five-year strategy targets $2 billion revenue by FY2030, focusing on margin improvement through advanced products, aftermarket, and exports.

• Guidance applies to consolidated B2B and B2C businesses, excluding Arka; company continues to monitor regulatory developments, especially New Labour Codes.