Kirloskar Oil Engines (KIRLOSENG) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 delivered record consolidated revenue: ₹1,763.80 crore, up 8% year-over-year, with standalone revenue at ₹1,444.65 crore.

• Standalone net profit was ₹122.80 crore, consolidated net profit at ₹134 crore, with PAT from continuing operations down 14% year-over-year.

• Growth was led by strong domestic demand, B2B and Power Gen segments, and robust international business, especially in the Middle East and North Africa.

• Strategic divestiture of the cables and pipes business (Optiqua/La-Gajjar Machineries) completed to focus on core operations.

• Segment realignment included moving Farm Mechanization Solutions from B2C to B2B for operational synergy.

Financial highlights

• Standalone net sales up 8% year-over-year to ₹1,444.65 crore; consolidated revenue up 8% to ₹1,763.80 crore.

• Standalone EBITDA margin at 13.2%, down from 14.8% last year (excluding one-time items); consolidated EBITDA at ₹284.38 crore.

• Standalone net profit at ₹122.80 crore; consolidated net profit at ₹134 crore; basic EPS (consolidated) at ₹9.77.

• Financial Services revenue up 18% year-over-year to ₹196 crore; AUM at ₹7,231 crore.

• Net cash and cash equivalents at ₹639 crore, reflecting strong liquidity.

Outlook and guidance

• Management expects sustained domestic demand across infrastructure, real estate, and emerging sectors like data centers.

• International business momentum, especially in the Middle East, is expected to continue.

• Strategic focus remains on B2B growth, innovation, and expanding high-horsepower product offerings.

• Farm Mechanization Solutions business reorganized from B2C to B2B segment to improve synergy.

• Focus on expanding B2C exports and growing secured granular retail business in Financial Services.