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Kirloskar Oil Engines Ltd.
NSE: KIRLOSENGIndustrialsSpecialty Industrial Machinery
- Last close
- ₹1,784.70
- Day change
- −₹84.30 (−4.51%)vs
- Market cap
- ₹30,078 crIndian rupees
- Research updated
- 1 report
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About Kirloskar Oil Engines
Kirloskar Oil Engines Ltd. is a leading manufacturer of diesel engines, diesel generator sets, and pump sets powered by diesel, petrol, and kerosene. The company operates across key segments including power generation, industrial engines, farm mechanization, and water solutions, serving agriculture, power generation, industrial, defence, marine, nuclear, construction, mining, and distribution sectors. Its B2B division focuses on engines, gensets, power solutions for institutional and project clients, after-sales support, and retail channels for tractor spares, oils, and batteries. The B2C Fluid Dynamics business handles pumps and water management, while the Financial Services arm, Arka, provides financing solutions. With manufacturing facilities in Pune, Kagal, Nashik, and Rajkot, Kirloskar Oil Engines Ltd. delivers versatile products for domestic and international markets, emphasizing operational efficiency and customer-centric innovation in engines and related equipment. Founded in 1946 and headquartered in Pune, India, it stands as a flagship entity in the engineering sector.
- Sector
- Industrials
- Industry
- Specialty Industrial Machinery
- Listing
- NSE: KIRLOSENG
- Employees
- 2,380
- Headquarters
- Pune, India
- ISIN
- INE146L01010
- Website
- kirloskaroilengines.com
Public research · Report of
Business model & financial foundation
Kirloskar Oil Engines (KOEL) (NSE: KIRLOSENG), Diesel engines, generating sets and power systems; pumps; NBFC (Arka): revenue of ₹7,701 crore in FY26 (+21.7% on FY25), an EBITDA margin of 18.4% and net profit of ₹574.3 crore.
- Revenue, FY26 (₹ crore)
- 7,701
- consolidated
- Revenue growth, FY26
- +21.7%
- on FY25
- EBITDA margin, FY26
- 18.4%
- EBITDA (rev - cogs - employee - other exp) / revenue
- Net profit, FY26 (₹ crore)
- 574.3
- to owners
- Return on equity, FY26
- 17.1%
- on average equity
- Market capitalisation (₹ crore)
- 29,693
- at the close of 15 Oct 2026
Company profile
Kirloskar Oil Engines is an Indian maker of diesel and gas engines, generating sets (low to high horsepower, CPCB IV+ compliant), industrial engines for construction, rail, marine, defence and nuclear applications, plus aftermarket parts and service. Through KOEL Fluid Dynamics it sells pumps and water management solutions, and through Arka Fincap it runs an NBFC. B2B engines and gensets are about three quarters of consolidated revenue.
| Item | Value |
|---|---|
| Legal name | Kirloskar Oil Engines Limited (formerly Kirloskar Engines India Limited) |
| Exchange and ticker | NSE: KIRLOSENG; BSE: 533293 |
| ISIN | INE146L01010 |
| CIN | L29100PN2009PLC133351 |
| Sector | Industrials |
| Industry | Diesel engines, generating sets and power systems; pumps; NBFC (Arka) |
| Headquarters | Pune, India |
| Fiscal year end | March |
| Reporting basis and unit | consolidated, in ₹ crore |
| Auditor | G. D. Apte & Co., Chartered Accountants, Pune (FRN 100515W) (since 2021-08-12) |
| Market capitalisation | ₹29,693 crore (15 Oct 2026) |
| Shares outstanding | 14.53 crore shares (FY26) |
| Price | ₹2,148 (close, 15 Oct 2026) |
| 52-week range | ₹867.0 - ₹2,720 (to 15 Oct 2026) |
| Website | https://www.kirloskaroilengines.com |
Corporate structure and shareholding
| Entity | Holding | Business |
|---|---|---|
| KOEL Fluid Dynamics Private Limited (formerly La-Gajjar Machineries) | 100% | Pumps and water management solutions (B2C segment), domestic and exports; standalone B2C business transferred to it by slump sale w.e.f. 11 Oct 2025 |
| Arka Financial Holdings Private Limited | 100% | Unregistered core investment company holding Arka Fincap (NBFC-ND-SI; SME, wholesale and secured retail lending) and Arka Investment Advisory |
| Arka Fincap Limited | n.d. | Step-down NBFC subsidiary via AFHPL; material subsidiary; holding % not stated in AR table |
| Kirloskar Americas Corporation | 100% | US subsidiary: industrial, powergen and fluid dynamics sales; data-centre engagement |
Optiqua Pipes and Electricals business classified as discontinued. Wildcat Power Gen (51% via KAC) and Kirloskar International ME FZE are smaller entities per earlier disclosures.
| Shareholding (% of shares) | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|
| Promoter | 41.12% | 41.08% | 41.07% | 41.07% |
| Promoter holding pledged | 0.00% | 0.00% | 0.00% | 0.00% |
| Foreign institutions | 8.34% | 8.45% | 10.79% | 11.33% |
| Domestic institutions | 28.00% | 28.21% | 26.69% | 26.00% |
| of which mutual funds | 25.53% | 26.10% | 24.87% | 23.85% |
| Retail | 22.56% | 22.26% | 21.45% | 21.61% |
The promoter holding pledged is a share of the promoter's own holding.
Business model
Kirloskar Oil Engines (NSE: KIRLOSENG) reports three segments. B2B (FY26 revenue 5,685.8 cr, result 592.0 cr) makes diesel/gas engines and gensets from low to high horsepower (CPCB IV+), industrial engines for construction, rail, marine, defence and nuclear, plus aftermarket parts and service. Standalone B2B sales in FY26: Powergen 2,598 cr, Industrial 1,444 cr, Distribution & Aftermarket 968 cr, International 593 cr. B2C (KOEL Fluid Dynamics, ex La-Gajjar; 1,138.5 cr / 106.2 cr) sells pumps and water management; the standalone B2C business moved into KFD by slump sale on 11 Oct 2025. Financial services (Arka Fincap, NBFC; 876.7 cr / 92.4 cr after interest) lends to SMEs, wholesale and secured retail; AUM 7,651 cr at Q1 FY27. Consolidated revenue FY26 7,701 cr, EBITDA 1,415 cr, PAT to owners 574 cr, diluted EPS 39.38. The industrial business is net cash (485 cr at Q1 FY27); nearly all consolidated debt (5,314 cr) is Arka's (5,042 cr at Mar-26).
| Segment | revenue, FY26 (₹ crore) | Share | segment result, FY26 (₹ crore) | Share |
|---|---|---|---|---|
| B2B Power & Energy (incl. FMS from 1 Apr 2025; comparatives regrouped) | 5,686 | 73.8% | 592.0 | 74.9% |
| B2C Fluid Dynamics (KOEL Fluid Dynamics pumps; ex-FMS from 1 Apr 2025) | 1,139 | 14.8% | 106.2 | 13.4% |
| Financial Services (Arka Financial Holdings / Arka Fincap) | 876.7 | 11.4% | 92.4 | 11.7% |
Segments as the company reports them (consolidated); each share is of the segments' sum.
| Peer | Why the dossier compares them |
|---|---|
| Cummins India (CUMMINSIND) | Market leader in Indian diesel gensets and engines, especially HHP and data-centre; the benchmark KOEL is chasing |
| Greaves Cotton (GREAVESCOT) | Competes in LHP/MHP gensets and small engines |
| Ashok Leyland (ASHOKLEY) | Power solutions (gensets/industrial engines) competitor, though mostly CV |
| Shakti Pumps (SHAKTIPUMP) | Listed pump peer for KOEL Fluid Dynamics B2C business |
| Kirloskar Brothers (KIRLOSBROS) | |
| Triveni Turbine (TRITURBINE) |
Financial databook
| Profit and loss (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Revenue from operations | 3,979 | 4,968 | 5,898 | 6,329 | 7,701 |
| Cost of revenue (vendor classification) * | 2,955 | 3,486 | 3,916 | 4,040 | 4,961 |
| Other operating costs (vendor classification) * | 326.8 | 419.1 | 472.2 | 551.3 | 686.1 |
| EBITDA (vendor classification) * | 409.8 | 727.9 | 1,025 | 1,166 | 1,434 |
| EBIT * | 324.0 | 640.7 | 900.0 | 1,094 | 1,241 |
| Finance costs incl. Arka financial services interest | 92.1 | 191.8 | 328.9 | 482.4 | 522.8 |
| Profit before tax, continuing operations | 231.9 | 448.9 | 595.2 | 648.7 | 756.3 |
| Total tax expense, continuing operations | 61.0 | 117.3 | 155.5 | 175.1 | 198.6 |
| Net profit, continuing operations | 170.9 | 331.7 | 439.7 | 473.6 | 557.7 |
| Diluted EPS, continuing + discontinued (INR) | 12.03 | 22.88 | 30.46 | 33.60 | 39.38 |
| Materials consumed + traded goods + inventory change | 3,497 | 3,581 | 4,447 | ||
| Employee benefits expense | 431.0 | 536.1 | 612.4 | ||
| Other expenses net of expenses capitalised | 941.9 | 1,025 | 1,226 | ||
| EBITDA (rev - cogs - employee - other exp) | 1,028 | 1,187 | 1,415 | ||
| Other income | 28.6 | 46.7 | 70.2 | ||
| Depreciation and amortisation | 118.8 | 139.4 | 174.0 | ||
| Share of net profit of joint venture | 1.33 | 0.73 | 0.00 | ||
| Exceptional items income/(expense) | -15.3 | 36.2 | -32.5 | ||
| Profit attributable to non-controlling interests | -2.17 | -13.3 | -11.9 | ||
| Profit attributable to owners of the parent (incl. discontinued) | 441.9 | 489.2 | 574.3 |
| Balance sheet (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Equity attributable to owners (X periods); vendor periods are total equity | 2,082 | 2,304 | 2,660 | 3,087 | 3,620 |
| Borrowings, current + non-current (incl. Arka FS debt; excl. leases) | 1,965 | 3,244 | 4,142 | 5,761 | 5,314 |
| Cash & equivalents + other bank balances | 153.0 | 270.3 | 492.9 | 996.6 | 1,250 |
| Trade receivables | 468.8 | 527.7 | 607.0 | 695.9 | 953.2 |
| Inventories | 388.1 | 545.0 | 643.6 | 591.3 | 743.7 |
| Trade payables (MSME + others) | 575.8 | 678.3 | 794.1 | 708.3 | 947.0 |
| Net property, plant and equipment * | 41.2 | 41.1 | 41.7 | 50.8 | 53.7 |
| Capital work in progress * | 26.5 | 61.4 | 264.2 | 90.8 | 76.8 |
| Total assets * | 5,030 | 6,725 | 8,278 | 10,480 | 10,852 |
| Current investments | 510.5 | 325.4 | |||
| Loans and receivables of financial services business (Arka), NC + current | 6,001 | 5,544 |
| Cash flow (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Cash from operations | -1,017 | -1,144 | -468.8 | -739.5 | 932.2 |
| Free cash flow (vendor definition) * | -1,166 | -1,082 | -863.9 | -1,047 | 592.4 |
| Dividends paid (the provider's sign: an outflow is negative) * | -57.8 | -72.3 | -72.4 | -87.1 | -94.4 |
| Capital expenditure (purchase of PPE and intangibles), sign as reported | -124.4 | -160.5 | -395.1 | -308.3 | -339.8 |
| Other reported lines (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Shares outstanding * | 14.46 | 14.47 | 14.49 | 14.51 | 14.53 |
| Quarterly profit and loss (₹ crore) | Q2FY25 | Q3FY25 | Q4FY25 | Q1FY26 | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|---|---|---|---|
| Revenue from operations | 1,499 | 1,449 | 1,749 | 1,764 | 1,948 | 1,873 | 2,116 | 2,000 |
| Cost of revenue (vendor classification) * | 817.4 | 803.2 | 1,461 | 1,016 | 1,108 | 1,062 | 1,236 | 1,179 |
| Other operating costs (vendor classification) * | 253.1 | 266.4 | -679.9 | 284.4 | 307.8 | 317.4 | 342.2 | 329.2 |
| EBITDA (vendor classification) * | 309.0 | 265.4 | 254.8 | 361.4 | 394.3 | 341.4 | 388.5 | 315.5 |
| EBIT * | 284.0 | 228.1 | 267.8 | 321.7 | 352.3 | 275.2 | 329.9 | 267.0 |
| Finance costs incl. Arka financial services interest | 117.5 | 133.2 | 130.6 | 139.4 | 136.0 | 127.5 | 119.9 | 116.0 |
| Profit before tax, continuing operations | 166.3 | 92.8 | 178.7 | 182.3 | 216.3 | 147.7 | 210.0 | 151.1 |
| Total tax expense, continuing operations | 41.5 | 26.2 | 52.6 | 48.1 | 57.1 | 38.5 | 54.8 | 40.0 |
| Net profit, continuing operations | 124.8 | 66.6 | 126.1 | 134.2 | 159.2 | 109.1 | 155.2 | 111.1 |
| Diluted EPS, continuing + discontinued (INR) | 8.74 | 4.89 | 9.01 | 9.75 | 11.17 | 7.64 | 10.86 | 7.81 |
| Materials consumed + traded goods + inventory change | 819.2 | 802.6 | 1,011 | 1,019 | 1,111 | 1,068 | 1,249 | 1,185 |
| Employee benefits expense | 136.3 | 133.1 | 142.0 | 137.1 | 151.1 | 161.7 | 162.5 | 191.2 |
| Other expenses net of expenses capitalised | 245.9 | 261.1 | 283.5 | 281.2 | 305.0 | 311.4 | 328.9 | 323.4 |
| EBITDA (rev - cogs - employee - other exp) | 297.2 | 252.5 | 312.4 | 326.7 | 381.8 | 331.5 | 375.5 | 300.3 |
| Other income | 11.5 | 10.6 | 15.1 | 34.7 | 12.6 | 9.97 | 12.9 | 15.2 |
| Depreciation and amortisation | 32.8 | 37.2 | 39.1 | 39.7 | 42.0 | 43.2 | 49.2 | 48.5 |
| Share of net profit of joint venture | 0.04 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Exceptional items income/(expense) | 7.87 | 0.00 | 20.9 | 0.00 | 0.00 | -23.0 | -9.44 | 0.00 |
| Profit attributable to non-controlling interests | -2.59 | -3.41 | -4.48 | -2.96 | -3.27 | -2.25 | -3.38 | -2.65 |
| Profit attributable to owners of the parent (incl. discontinued) | 127.5 | 71.3 | 131.0 | 141.9 | 162.5 | 111.4 | 158.6 | 113.7 |
Consolidated, as reported. Lines marked * are the market-data provider's figures; the rest are extracted from the company's filings or derived from them. n.d. not disclosed, n.r. not retrieved, n.a. not applicable.
Metrics dashboard
| Metric | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Revenue growth | 22.2% | 24.9% | 18.7% | 7.3% | 21.7% |
| EBITDA margin | 17.4% | 18.8% | 18.4% | ||
| Net margin | 7.5% | 7.7% | 7.5% | ||
| Return on equity | 17.8% | 17.0% | 17.1% | ||
| Return on capital employed | 9.5% | 13.4% | 14.6% | 14.0% | 14.0% |
| Return on assets | 5.9% | 5.2% | 5.4% | ||
| Borrowings less cash (₹ crore) | 1,812 | 2,974 | 3,649 | 4,764 | 4,063 |
| Borrowings less cash / EBITDA | 3.55x | 4.01x | 2.87x | ||
| Interest cover | 3.52x | 3.34x | 2.74x | 2.27x | 2.37x |
| Asset turnover | 0.90x | 0.85x | 0.79x | 0.67x | 0.72x |
| Receivable days | 43 | 39 | 38 | 40 | 45 |
| Inventory days (on revenue) | 36 | 40 | 40 | 34 | 35 |
| Payable days (on revenue) | 53 | 50 | 49 | 41 | 45 |
| Cash conversion | -1.06x | -1.51x | 1.62x | ||
| Capex intensity | 3.1% | 3.2% | 6.7% | 4.9% | 4.4% |
| Free cash flow (₹ crore) | -1,141 | -1,305 | -863.8 | -1,048 | 592.4 |
| Dividend payout | 16.4% | 17.8% | 16.4% | ||
| EPS, diluted (₹) | 12.03 | 22.88 | 30.46 | 33.60 | 39.38 |
| Book value per share (₹) | 143.9 | 159.3 | 183.6 | 212.7 | 249.2 |
Computed from the statements above:
- Revenue growth: revenue over the previous year's, less one.
- EBITDA margin: EBITDA (rev - cogs - employee - other exp) / revenue.
- Net margin: net profit to owners / revenue.
- Return on equity: net profit to owners / average equity.
- Return on capital employed: EBIT / average equity plus borrowings.
- Return on assets: net profit to owners / average total assets.
- Borrowings less cash (₹ crore): borrowings less cash and cash equivalents, with no investments netted; negative is cash beyond borrowings.
- Borrowings less cash / EBITDA: borrowings less cash / EBITDA (rev - cogs - employee - other exp).
- Interest cover: EBIT / finance cost.
- Asset turnover: revenue / average total assets.
- Receivable days: receivables / revenue x 365.
- Inventory days (on revenue): inventory / revenue x 365.
- Payable days (on revenue): payables / revenue x 365.
- Cash conversion: cash from operations / net profit to owners.
- Capex intensity: capital expenditure / revenue.
- Free cash flow (₹ crore): cash from operations less capital expenditure.
- Dividend payout: dividends paid / net profit to owners.
- EPS, diluted (₹): as reported (Diluted EPS, continuing + discontinued (INR)).
- Book value per share (₹): equity / shares outstanding.
Source: the company's filings and disclosures as extracted into Mool's company dossier (version 1, information to 15 Oct 2026); market data at the close of 15 Oct 2026. Every figure is read from the dossier's files or computed from them; the account of the business model is the analyst's, from the dossier's workings.
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- Future earnings & financial modelForecasts built from the drivers that move the business, by scenario, beside the street's.
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The model behind the report: the company’s history, the drivers that move it, its forecasts by scenario and the valuation the 12-month target comes from.
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Report history
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Prices are the last close on the NSE, 23 Oct 2026. Research from Mool’s report of 15 Oct 2026; page updated 25 Oct 2026.
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