Kirloskar Oil Engines Ltd(KIRLOSENG)

NSE: KIRLOSENGBSE: 533293

₹ 1,784.3-4.52%refreshed 23 Oct, 03:57 pm ISTMarket cap: ₹ 25,965 crWebsite: www.kirloskaroilengines.comUpdated: 24 Oct 2026

About

Kirloskar Oil Engines Limited (KOEL) is an Indian manufacturer of internal combustion engines and generator sets, with products ranging from 2.5 hp to 13,500 hp engines and gensets from 3 kVA to 12,000 kVA, sold in almost 60 countries. KOEL holds 28% market share in the domestic Powergen segment and ranks among the top global genset brands, operating the largest fleet of IoT-enabled gensets. It reported FY26 revenue of Rs 7,701.01 Cr across B2B, B2C and Financial Services segments.^[1][2]

Business segments

B2B segment (engines, gensets, industrial): revenue Rs 5,685.81 crores, 73.8% of consolidated revenue, EBIT margin 10.4% in FY26.^[3]
B2C segment (KOEL Fluid Dynamics - pumps and fluid solutions): revenue Rs 1,138.53 crores, 14.8% of consolidated revenue, EBIT margin 9.3% in FY26.^[3]
Financial services segment (Arka Fincap): revenue Rs 876.67 crores, 11.4% of consolidated revenue, EBIT margin 10.5% in FY26.^[3]
Within standalone B2B, Powergen grew 32% YoY with quarterly revenues crossing Rs 700 crores for the first time in Q4 FY26; full-year industrial revenues reached Rs 1,444 crores, growing 22%.^[1]

Products and brands

Engines span 2.5 hp to 1,650 hp; fuel-agnostic gensets range from 3 kVA to 12,000 kVA; industrial engines cover 20 hp to 13,500 hp for earth moving, construction, marine, defence and rail.^[1]
Alternative fuel solutions include biodiesel, natural gas, HFEC, ethanol, methanol, HVO, hythane, hydrogen-diesel blend, pure hydrogen, isobutanol and biogas-based engines.^[1]
The 1,250 kVA premium industrial genset family is deployed across data centres, metro infrastructure and critical standby systems; Optiprime range extends to 3,000 kVA.^[1]
KOEL secured India's first CPCB IV+ certified 58.5 kVA HCNG Genset and India's first CPCB IV+ 2.4 kW LPG Genset, and secured IP for India's first hydrogen-engine-based gensets.^[1]

Operations and capacity

The Rajkot plant fulfilled more than 80% capacity and exceeded 20,000 engines per quarter from Q3 FY26 onwards.^[1]
The Nashik facility is certified for nuclear-grade manufacturing and validated for NPCIL nuclear-grade standards.^[1]
The standalone B2C business was transferred to wholly owned subsidiary KOEL Fluid Dynamics (formerly La-Gajjar Machineries) via slump sale, effective 11 October 2025.^[4]
Kirloskar Advanced Systems Private Limited was incorporated on 30 March 2026 as a focused entity for systems integration and defence contracting, marking entry into defence and railways.^[5][1]

Key operating numbers

KOEL sold upwards of 50,000 DG units in FY26, growing 41% against an industry that grew 18% to approximately 179,000 units including telecom.^[5]
HHP Power Gen market share was negligible two years ago and is approaching double digits in FY26; Marine grew 125% and Railways grew 62% YoY in Q1 FY27.^[5]
Standalone revenue in Q1 FY27 rose 16% YoY to Rs 1,461 crores: Powergen +18%, Industrial +19%, Distribution & Aftermarket +20% YoY.^[6]
International standalone revenue fell 11% YoY to Rs 106 crores in Q1 FY27 due to Middle East logistics disruptions; group international gross sales crossed Rs 1,000 crores in FY26, growing 37%.^[6]
Distribution & Aftermarket has delivered double-digit growth for 12 consecutive quarters as of Q1 FY27.^[6]
Standalone cash conversion cycle was 25 days in Q1 FY27.^[6]

Customers and distribution

Power and Energy segment is supported by a service network of over 500 outlets and more than 3,000 professionals.^[1]
KOEL products were sold in almost 60 countries in FY26; KFD expanded its international footprint to 55 countries across four continents.^[1]
Middle East and North Africa is KOEL's largest international market, about 60% of international sales mix in H1 FY26.^[1]
Service requests in Distribution & Aftermarket reached an all-time high of approximately 92,000 in Q2 FY26.^[7]
Kirloskar Americas Corporation maintains stocking arrangements in Miami for engines, generating sets and spare parts for North, Central and South America.^[1]

Expansion and capex

Rs 1,400 crores of new capex at the existing Kagal site for a new building and production lines for HHP Power Gen, to be deployed over two years to FY28; management cited asset turn of 4 - 5x.^[5]
A separate Rs 700 crore capex programme to add 50,000 engines of capacity is targeted to come online by April 2027.^[5]
NPCIL order of Rs 798 crores (10 units, 6.3 MW each) to be executed by 2029; some revenue to begin flowing in FY27.^[5]
Consolidated revenue target of USD 2 billion by FY29-30, stated as Rs 16,000 Cr in the FY26 annual report and about Rs 16,600 crores as reaffirmed in Q1 FY27.^[1][6]

Financial services arm - Arka Fincap

Arka Fincap AUM stood at Rs 7,651 crores with approximately 136 branches and over 1,800 employees as of Q1 FY27.^[6]
Arka's debt-to-equity ratio was 3.7x in Q1 FY27 vs 4.2x a year prior; KOEL Fluid Dynamics' credit rating was upgraded to AA.^[6]
Management stated a hive-off of Arka Fincap from KOEL is the long-term plan, to be pursued stepwise.^[6]

Recent developments

On 1 October 2026, KOEL incorporated Kirloskar International B.V. in the Netherlands as a wholly owned subsidiary.^[8]
On 30 September 2026, Kirloskar International ME FZE acquired 100% of Kirloskar Trading SA (PTY) Limited, KOEL's authorised agent in South Africa, for Rs 8.25 crores; KOEL acquired the shares directly on 1 October 2026.^[9][1]
In Q1 FY27, KOEL secured its first hyperscale data centre order of approximately 192 MW, with an associated O&M contract running 5 - 6 years.^[6]
KOEL received its first oil and gas segment order for natural gas gensets across ratings up to 500 kVA in Q1 FY27.^[6]
Kirloskar International ME FZE started operations on 1 October 2025 in the UAE, focused on firefighting engines, industrial engines and spares in MENA.^[1]
The FY26 annual report names Middle East geopolitical volatility, commodity costs and forex as risks.^[1]

Market Cap

₹25,965 Cr

High / Low

₹2,720 / 880

Stock P/E

51.3

Price / Book

7.6

Book Value

₹249

EPS

₹38.7

No. of Shares

14.54 Cr

ROCE

14.7%

ROE

16.8%

OPM

16.9%

Debt / Equity

1.47

Sales

₹7,701 Cr

Net Profit

₹558 Cr

Promoter holding

41.0%

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Kirloskar Oil Engines Ltd(KIRLOSENG)

About

Business segments

Products and brands

Operations and capacity

Key operating numbers

Customers and distribution

Expansion and capex

Financial services arm - Arka Fincap

Recent developments

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