Kirloskar Oil Engines (KIRLOSENG) Q4 24/25 earnings summary

Executive summary

• Achieved 1.6x top-line growth from FY22 to FY25, with FY25 standalone sales at ₹5,113.33 crore and consolidated sales at ₹6,349.13 crore, and 2.4x EBITDA growth, marking 11 consecutive quarters of over ₹1,000 crore revenue from operations.

• Completed the 2X3Y journey, expanded product portfolio, especially in HHP gensets and international markets, and launched new products including the world's smallest 1,000 kVA genset and Sentinel Series.

• Secured a ₹270 crore deal with the Indian Navy for indigenized propulsion engines, supporting defense self-reliance.

• ARKA transitioned to a new leadership and strategy, focusing on a diversified, retail-focused, high-return loan portfolio.

• Announced the 2B strategy, targeting $2 billion in revenue by FY2030.

Financial highlights

• Standalone FY25 sales grew to ₹5,113.33 crore, up from ₹4,850.54 crore YoY; consolidated FY25 sales reached ₹6,349.13 crore, up from ₹5,898.32 crore YoY.

• Standalone FY25 net profit was ₹428.86 crore, consolidated net profit was ₹475.82 crore; standalone EPS at ₹29.77, consolidated EPS at ₹33.71.

• Q4 sales reached an all-time high of ₹1,401 crore, up 21% sequentially; Q4 consolidated sales were ₹1,737 crore.

• FY25 EBITDA margin at 12.8%, PAT margin at 8.5% standalone and 7.5% consolidated.

• Cash from operations grew 2.6x from FY22 to FY25, reaching ₹490 crore.

Outlook and guidance

• Long-term ambition to reach $2 billion consolidated revenue by FY2030, focusing on technology, capacity, international expansion, and retail business growth.

• ARKA targets 3x AUM growth, 3% ROA, and GNPAs below 3% by FY30, focusing on granular secured retail lending.

• Board recommended a final dividend and highlighted ongoing expansion, including international subsidiary incorporation.