Kirloskar Oil Engines Limited (KOEL), a leading manufacturer of internal combustion engines, generator sets and agricultural equipment, has reported a strong start to FY27 with 16 percent year-on-year growth in standalone revenue from operations for the quarter ended June 30, 2026. The company continued to record healthy domestic demand across its core businesses while advancing its technology-driven growth strategy.
Standalone revenue from operations increased to ₹1,471 crore from ₹1,272 crore in the corresponding quarter last year. Net sales also rose 16 percent to ₹1,461 crore. The company reported EBITDA of ₹165 crore with an EBITDA margin of 11.2 percent, while standalone net profit stood at ₹99 crore. KOEL maintained a strong financial position with cash and cash equivalents of ₹485 crore. On a consolidated basis, revenue from operations grew 13 percent year-on-year to ₹2,000 crore, while consolidated net profit stood at ₹111 crore.
Commenting on the results, Gauri Kirloskar, Vice Chairperson and Managing Director, said the first quarter marked another important step in KOEL’s transformation into a technology-led engineering and power solutions company. She noted that despite geopolitical uncertainties and weak export demand, the company delivered broad-based domestic growth across its Power Generation, Industrial, and Distribution & Aftermarket businesses through stronger execution, improved market share and a resilient business model.
During the quarter, KOEL strengthened its leadership in the domestic power generation market by expanding its OptiPrime modular power systems for mission-critical applications. The company also continued to invest in gas-based distributed power solutions, supporting opportunities across data centres, industrial power, utilities and other strategic sectors.
The Industrial business expanded into new applications, while the Distribution & Aftermarket business recorded another strong quarter driven by service-led growth. KOEL also completed its first turnkey high-horsepower repowering project, further strengthening its engineering capabilities. The company’s subsidiary, KOEL Fluid Dynamics, expanded its product portfolio with 13 new launches while recording healthy growth in industrial pumps and improving operational efficiency. Arka Financial Services also continued its expansion, increasing both its national presence and assets under management during the quarter.
Although exports remained under pressure due to global geopolitical developments and delayed customer investments, KOEL continued to improve operational efficiency through disciplined cost management and selective pricing actions. The company remains confident that these measures, combined with continued investments in advanced engineering, innovation and customer-focused power solutions, will support stronger profitability and sustainable long-term growth.
With a legacy spanning several decades, Kirloskar Oil Engines Limited has built a strong presence across domestic and international markets through its portfolio of power generation solutions, industrial engines, agricultural equipment and engineering systems. The company continues to invest in technology, operational excellence and market expansion to strengthen its position in the evolving energy and industrial landscape.
