Kirloskar Oil Engines Limited (KOEL) reported a 35% increase in standalone sales for Q2 FY26, reaching ₹1,593 Crore. The Power Generation Business Unit (PGBU) saw a significant 41% year-on-year growth. Consolidated revenue from operations for Q2 FY26 stood at ₹1,948.4 Crore, a 30% increase compared to the previous year. The company’s financial services arm, Arka Financial Holdings (AFHPL), witnessed a revenue of ₹233 Crore, a 20% YoY increase.
Standalone Performance
KOEL’s standalone sales for Q2 FY26 increased by 35% to ₹1,593 Crore compared to ₹1,184 Crore in Q2 FY25. For the first half of the fiscal year (H1 FY26), standalone sales grew by 20% to ₹3,027 Crore.
Key highlights:
- B2B Sales: Increased by 35% in Q2 FY26.
- Power Gen: Increased by 41% in Q2 FY26.
- Industrial: Increased by 40% in Q2 FY26.
- EBITDA Margin: Stood at 13.4% for Q2 FY26.
Standalone profit after tax (PAT) for Q2 FY26 was ₹140.8 Crore, with a margin of 8.8%.
Consolidated Performance
The company’s consolidated revenue from operations for Q2 FY26 was ₹1,948.4 Crore, up 30% from ₹1,498.6 Crore in Q2 FY25. For H1 FY26, the consolidated revenue reached ₹3,712.2 Crore, a 19% increase year-over-year.
- B2B Segment: Saw a 34% increase in revenue.
- Financial Services: Revenue increased by 17% to ₹233.3 Crore.
Consolidated PAT for Q2 FY26 stood at ₹159.2 Crore with a margin of 8.2%.
Financial Services (Arka Financial Holdings)
Arka Financial Holdings (AFHPL) reported total assets under management (AUM) of ₹7,558 Crore as of September 30, 2025. AFHPL’s consolidated revenue from operations stood at ₹233 Crore in Q2 FY26, a 20% year-over-year increase. The consolidated PAT for AFHPL stood at ₹25.5 Crore.
KOEL’s total investment in AFHPL as of September 30, 2025, stood at ₹1,053 Crore.
B2B Segment Highlights
The Power Generation Business Unit (PGBU) achieved a remarkable 41% year-on-year growth. Exports (standalone) for H1 FY26 were up by 24% year-on-year.
B2C Segment
The B2C segment reported top-line growth of 23% year-on-year. Strategic restructuring involved transferring the business to a wholly-owned subsidiary, La-Gajjar Machineries Pvt. Ltd.
Source: BSE
