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 sales growth and 25% year-to-date growth, driven by double-digit growth across all business segments.

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

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

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

• Strategic B2C business integration into LGM and continued focus on B2B and industrial tailwinds position the company for sustained growth.

Financial highlights

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

• B2B Q3 FY26 revenue at ₹1,396.15 Cr (36% growth), B2C at ₹249.39 Cr (18% growth), and financial services at ₹227.06 Cr (7% growth).

• Standalone net cash position at ₹348 Cr as of Q3 FY26.

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

Outlook and guidance

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

• Guidance applies to consolidated B2B and B2C businesses, excluding Arka.

• Company continues to monitor regulatory developments, especially regarding the New Labour Codes, and will assess future accounting implications.