KOEL reports its highest-ever quarterly consolidated revenue, while standalone net profit declines 14% amid pressure on operating margins.
Kirloskar Oil Engines Limited (KOEL) has reported its highest-ever quarterly consolidated revenue of Rs 2,257 crore for the second quarter of FY2027, registering a 17% year-on-year increase. The company recorded standalone net sales of Rs 1,722.5 crore, up 19% compared to the corresponding period last year.
The results for the quarter ended September 30, 2026, reflect growth in the company’s Power Generation, Aftermarket and international businesses. However, profitability remained under pressure, with both standalone and consolidated net profit declining year-on-year.
Standalone Revenue Grows 19%, Net Profit Falls 14%
KOEL’s standalone revenue from operations increased 19% to Rs 1,739 crore in Q2 FY2027, compared to Rs 1,459.5 crore in Q2 FY2026. Net sales during the quarter stood at Rs 1,722.5 crore, against Rs 1,449.3 crore in the year-ago period.
Despite the revenue growth, standalone EBITDA declined 6% to Rs 191.1 crore from Rs 204 crore. The EBITDA margin contracted to 11% from 14% in the corresponding quarter last year.
Standalone net profit stood at Rs 115.2 crore, registering a 14% decline compared to Rs 133.5 crore in Q2 FY2026. The net profit margin also narrowed to 6.6% from 9.2%.
The company reported cash and cash equivalents of Rs 309 crore, net of debt, including treasury investments and excluding unclaimed dividends.
Consolidated Revenue Crosses Rs 2,000 Crore
On a consolidated basis, KOEL’s revenue from operations increased 17% year-on-year to Rs 2,284 crore in Q2 FY2027, compared to Rs 1,950.6 crore in the same quarter last year.
Consolidated net profit, however, declined 18% to Rs 130.3 crore from Rs 159.2 crore. The net profit margin contracted to 5.7%, against 8.2% in Q2 FY2026.
The headline consolidated revenue figure of Rs 2,257 crore highlighted by the company represents its record quarterly performance, while the detailed financial results report revenue from operations of Rs 2,284 crore.
H1 FY2027 Performance
For the first half of FY2027, KOEL’s standalone net sales increased 17% to Rs 3,183.9 crore, compared to Rs 2,711.3 crore in H1 FY2026. Standalone revenue from operations grew 18% to Rs 3,210.3 crore.
Standalone EBITDA declined 5% to Rs 356.6 crore, while net profit fell 12% to Rs 214.5 crore during the six-month period.
Consolidated revenue from operations rose 15% to Rs 4,283.8 crore in H1 FY2027, compared to Rs 3,713.7 crore in the corresponding period last year. Consolidated net profit declined 18% to Rs 241.4 crore from Rs 293.4 crore.
Management Highlights Business Momentum
Commenting on the results, Gauri Kirloskar, Vice Chairperson and Managing Director of Kirloskar Oil Engines, said the company had delivered its best-ever quarter despite significant headwinds from global commodity inflation.
She highlighted strong performances in Power Generation, Aftermarket and international businesses, which supported market share gains. She also pointed to the company’s global agreement with DEUTZ and the first commercial billing of KASPL as developments supporting its future growth plans.
The company said the financial figures reported are for continuing operations only.
