Kirloskar Oil Engines (KIRLOSENG) Q4 25/26 earnings summary

Executive summary

• Achieved record consolidated and standalone revenues and profits in FY26, with strong growth across B2B, B2C, and Financial Services segments.

• Standalone and consolidated PAT grew significantly year-over-year, with improved margins and operational efficiency.

• Sold over 1 million pumps, crossed INR 1,000 crore in international gross sales, and became a top 10 global manufacturer by volume in industrial and power gen sectors.

• Strategic reorganization included transfer of B2C business to a wholly owned subsidiary, with no impact on consolidated results.

• Board approved audited financial results for FY26 with unmodified audit opinions; final dividend of ₹4.50 per share recommended, subject to AGM approval.

Financial highlights

• Standalone Q4 FY26 net sales: INR 1,522 crore (+24% YoY); full-year net sales: INR 5,646.83 crore (+25% YoY); EBITDA: INR 737 crore (+33% YoY); EBITDA margin: 13.1%.

• Standalone net profit for FY26: INR 464 crore (+35% YoY); consolidated net profit: INR 562.46 crore (+18% YoY); consolidated revenue: INR 7,701.01 crore (+22% YoY).

• Standalone EPS for FY26: ₹31.73; consolidated EPS: ₹39.53.

• Net cash position at INR 552 crore; working capital cycle improved with inventory at 48 days, receivables at 41 days, payables at 60 days.

• Final dividend of ₹4.50 per share recommended for FY26.

Outlook and guidance

• Targeting to become a $2 billion company by FY30, with industrial and aftermarket segments as key drivers.

• Committed to sustainable growth, focusing on long-term profitability and resilience through business cycles.

• Strategic shift in B2C toward last-mile sales and new product launches; continued focus on secured granular retail business in financial services.

• Operating leverage expected to improve as new capacity comes online, with margin gains anticipated from FY27.

• Company will continue to evaluate the impact of new Labour Codes and account for further implications as they become measurable.