Kirloskar Oil Engines (KOEL) reported solid financial results for Q3 FY26, marked by the highest-ever third-quarter sales performance. The company saw strong year-on-year growth in standalone sales of 35%, reaching ₹1,371 Crore. Consolidated B2B segment revenue also grew by 29% YoY. Key drivers included robust execution in the Industrial segment and strong growth in the Distribution and Aftermarket business.
Company Update and Earnings Call Notification
Kirloskar Oil Engines Limited issued a communication to the stock exchanges on 11th February 2026, confirming that a Conference Call for Investors and Analysts to discuss the unaudited financial results for the quarter ended 31st December 2025 would be held on Thursday, 12th February 2026, at 3:30 pm (IST). The presentation materials for the Q3 FY26 Earnings Call are attached.
KOEL Group Structure Overview
The KOEL Group structure includes key subsidiaries: KOEL Fluid Dynamics (P) Limited (“KFD”) (100%), Kirloskar Americas Corporation (100%), Kirloskar International ME FZE (100%), and Arka Financial Holdings (P) Ltd (100%). Notably, Engines LPG, LLC dba Wildcat Power Gen is a 51% owned entity.
Standalone Sales Highlights – Q3 FY26 YoY
Standalone Total Sales grew by 35% YoY, climbing from ₹1,015 Crore in Q3 FY25 to ₹1,371 Crore in Q3 FY26. Year-to-Date (YTD) sales also showed a 25% increase, reaching ₹4,082 Crore.
Segment-wise Q3 YoY growth:
- Power Gen: Increased by 44% to ₹603 Crore.
- Industrial: Grew by 41% to ₹390 Crore.
- Distribution & After Market: Increased by 14% to ₹238 Crore.
- International B2B: Grew by 26% to ₹140 Crore.
On a YTD basis, the Power Gen segment remains the largest contributor at 46% of domestic sales.
Standalone Financial Summary (Q3 FY26 vs Q3 FY25)
Standalone PBT (Profit Before Tax) from Continuing Operations surged by 53% YoY, while PAT (Profit After Tax) from Continuing Operations grew by 54%, moving from ₹56.7 Crore to ₹87.4 Crore. The EBITDA margin for Q3 FY26 stood at 12.2%, a 18% YoY improvement.
The Net Cash Position stood at ₹348 Crore in Q3 FY26, following a peak of ₹639 Crore in Q1 FY26. Working capital metrics showed improvements, with Inventories days decreasing to 66 Days and Payables days reducing to 59 Days.
Consolidated Segment Performance Overview – B2B
Consolidated B2B revenue trended positively, with Q3 FY26 sales reaching ₹1,396.2 Crore, a 36% YoY growth over Q3 FY25’s ₹1,027.1 Crore. Q3 FY26 marked the highest ever 3rd quarter sales for the B2B segment.
Performance Updates:
- Industrial: Recorded its highest-ever quarterly sales, driven by robust execution in Defence, Marine & Railway. Domestic Industrial business grew 41% YoY.
- Power Generation: Growth was led by the LHP (Low Horsepower) segment, while the HHP (High Horsepower) segment grew by 235% YoY.
- Distribution & Aftermarket: Delivered Q3 sales of ₹238 Crore, marking a 14% YoY growth and its highest-ever quarterly performance.
Consolidated Segment Performance Overview – B2C
The B2C segment (now primarily WMS at 70%) experienced a top-line growth of 18% YoY, with Q3 FY26 revenue at ₹249 Crore. The Export business nearly doubled year-on-year, gaining strong traction following the strategic restructuring which transferred the standalone B2C business to the wholly owned subsidiary, KOEL Fluid Dynamics Private Limited (KFD), effective October 11, 2025.
Consolidated Segment Performance Overview – Financial Services
The Financial Services arm, AFHPL, reported consolidated revenue from operations of ₹227 Crore in Q3 FY26, showing a 7% YoY growth, with PAT at ₹11.2 Crore. The Total Assets Under Management (AUM) reached ₹7,679 Crore as of 31st December 2025, continuing the drive to grow secured granular retail business.
Consolidated Profit and Loss Summary
Consolidated Net Sales grew 29% YoY in Q3 FY26 to ₹1,859.0 Crore. The PAT From Continuing Operations saw significant growth of 64% YoY in the quarter, rising to ₹109.1 Crore from ₹66.6 Crore in Q3 FY25.
Consolidated segment results reflect strong performance in B2B, where segment results grew 90% YoY, and B2C, which registered a massive 568% YoY growth in segment results due to the restructuring and comparable adjustments.
Source: BSE
