Kirloskar Oil Engines Ltd (KOEL) (BSE: 533293; NSE: KIRLOSENG), a leading manufacturer of internal combustion engines, power generation equipment, and agricultural machinery, reported its audited financial results for the fourth quarter and full year ending March 31, 2025. The company posted its highest-ever standalone quarterly revenue of ₹1,401 crore, marking a 2% year-on-year rise and a 21% jump over the previous quarter. EBITDA for the quarter stood at ₹171 crore, reflecting a 45% increase sequentially, though slightly down from ₹179 crore a year ago. The EBITDA margin came in at 12.1%. Net profit for Q4 was ₹106 crore, a 62% quarter-on-quarter increase, despite a 10% decline compared to the same period last year.
On a consolidated basis, Q4 revenue from operations reached ₹1,753 crore, up 6% from the previous year and 21% higher than the preceding quarter. Consolidated net profit for the quarter was ₹111 crore, reflecting an 18% decline year-on-year but a 64% increase over Q3. The company closed the quarter with net cash and equivalents of ₹448 crore, maintaining a robust financial position.
For the full year FY25, KOEL recorded standalone revenue of ₹5,073 crore, a 6% increase from ₹4,806 crore in FY24. EBITDA rose by 15% to ₹654 crore, and net profit grew to ₹416 crore from ₹362 crore, also a 15% increase. Margins improved to 12.8%, compared to 11.7% in the previous fiscal. On a consolidated basis, full-year revenue stood at ₹6,349 crore, up 8% year-on-year. Net profit for FY25 was ₹449 crore, nearly flat compared to ₹451 crore in FY24.
Managing Director Gauri Kirloskar noted that FY25 was a landmark year, with the company delivering its highest-ever sales despite a market correction following the CPCB4+ emissions transition. She highlighted the consistent performance across both B2B and B2C segments, emphasizing KOEL’s ability to maintain growth and profitability in a dynamic market environment. The 2x3y strategic plan launched in FY22, aimed at doubling revenue in three years, concluded this quarter. While topline grew 1.6 times, EBITDA expanded 2.4 times, and operating cash flow increased by 2.6 times during the period.
Reflecting on the company’s strategic evolution, Gauri Kirloskar acknowledged that while not all targets were met exactly as envisioned, the team demonstrated resilience and adaptability. These experiences, she said, lay a strong foundation for the company’s next major goal—reaching $2 billion in revenue over the next five years under its new “2B2B” strategy. She expressed confidence that KOEL is well-equipped to scale further through continued focus on innovation, operational excellence, and market diversification.
The Board of Directors has recommended a total dividend of 325% for FY25. This includes a final dividend of 200% (₹4.00 per share), subject to shareholder approval, in addition to an interim dividend of 125% (₹2.50 per share) already paid during the year. The company’s robust financial health, strategic investments in R&D, and continued expansion into international markets position KOEL for sustainable long-term growth.
Kirloskar Oil Engines Ltd (KOEL) is a prominent manufacturer of internal combustion engines, agricultural machinery, and power generation equipment, with a strong footprint in both domestic and international markets. The company produces high-performance engines for a range of construction equipment and is known for its expertise in developing both air-cooled and liquid-cooled engines for generator sets, covering capacities from 2kVA to 3000kVA.
KOEL holds a substantial market share in diesel and electric pump sets, power tillers, and specialized engines for the marine and fishing sectors. Its global presence is supported by an extensive distribution network, with regional offices located in Dubai, South Africa, Kenya, and Houston, USA, ensuring efficient service and support across key markets.
The company’s state-of-the-art Research & Engineering Centre plays a critical role in ensuring all engines and gensets comply with rigorous noise and emission standards. In addition to conventional products, KOEL also manufactures engines compatible with alternative fuels, including biodiesel, natural gas, and biogas, reflecting its commitment to sustainable solutions.
