Synopsis: Kirloskar Oil Engines Ltd reported strong Q2 results with sales up 30% YoY and profit rising 27%, supported by steady 10% QoQ growth and robust performance across power generation and industrial segments, reflecting sustained business momentum.
This company manufactures and services diesel engines and diesel generator sets also makes diesel, petrol and kerosene-based pump sets is now in the focus after it reported Q2 results with 27% profit growth and 30% sales growth year on year.
With market capitalization of Rs. 15,677 cr, the shares of Kirloskar Oil Engines Ltd are currently trading at Rs. 1,080 per share, jumping more than 15% in today’s market session, making a high of Rs. 1,093.50, from its previous close of Rs. 945.15 per share.
Quarter-on-Quarter (QoQ) Performance
Kirloskar Oil Engines Ltd delivered steady sequential growth in Q2 FY2025. Sales rose 10% QoQ to Rs. 1,948 crore from Rs. 1,764 crore in the Q1FY26. EBITDA increased 17% to Rs. 382 crore, while net profit grew 14.4% to Rs. 159 crore. EPS also improved 14%, rising from Rs. 9.77 to Rs. 11.18.
Year-on-Year (YoY) Performance
On a yearly basis, the company posted robust results, with sales jumping 30% YoY from Rs. 1,505 crore to Rs. 1,948 crore. EBITDA climbed 28% from Rs. 298 crore to Rs. 382 crore, while net profit surged 27% from Rs. 125 crore to Rs. 159 crore. EPS advanced 27%, increasing from Rs. 8.79 to Rs. 11.18.
B2B and B2C Segments
Kirloskar Oil Engines Ltd operates through diverse product lines that are strategically mapped to its B2B and B2C business segments. Under the B2B segment, the company caters to Power Generation, Industrial, and Distribution & Aftermarket businesses, serving large institutional clients in sectors such as marine and defense, along with offering engines, gensets, and after-sales support.
The International Business also falls under this segment, driving global growth. In the B2C segment, Kirloskar focuses on Water Management Solutions, offering engine-based and electric pump sets (KOEL and LGM brands), along with a retail network for tractor spares, oils, and batteries. Additionally, the company’s Arka Group provides financial services, complementing its industrial and consumer offerings.
Business Highlights
Kirloskar Oil Engines Ltd’s Power Generation Business Unit (PGBU) delivered an impressive 41% year-on-year growth in its standalone operations, reinforcing its market leadership in the sector.
Domestic Market saw strong traction in its OptiPrime range, securing multiple large commercial orders of 1500, 2000, and 2500 kVA, reflecting high customer confidence. The Industrial BU also maintained healthy momentum, particularly in the Defence and Railway segments. Key developments included the submission of the detailed design for the Indian Navy’s ‘Make 1’ initiative and the launch of a new 400HP engine for railway maintenance applications.
On the global front, KOEL continued its robust performance in the Middle East and North Africa (MENA) region, with exports rising 24% year-on-year in H1 FY26, underscoring its growing international footprint and strong demand across markets.
The segment revenue composition for the current quarter is primarily driven by the Power Generation segment, which contributes 47% of the total revenue. The Industrial segment follows with a 26% share, while Distribution & After Market accounts for 16%. Exports form the smallest segment, contributing 11% of the quarter’s total revenue.
Written by Manideep Appana
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