Kirloskar Oil Engines Limited (KOEL) (BSE: 533293; NSE: KIRLOSENG), a leading manufacturer of internal combustion engines, power solutions, and agricultural equipment, has announced its unaudited financial results for Q3 and the first nine months of the financial year ending March 31, 2025. In Q3 FY25 (Standalone), the company reported net sales of ₹1,154 crore, reflecting a 3% year-on-year (YoY) growth compared to ₹1,125 crore in Q3 FY24.
However, EBITDA declined by 9% YoY to ₹117 crore from ₹128 crore, leading to a reduction in EBITDA margin from 11.3% to 10.1%. Net profit also saw a decline of 17% YoY, standing at ₹65 crore versus ₹79 crore in the same quarter last year. The company maintained a strong liquidity position, with cash and cash equivalents of ₹159 crore, net of debt, including treasury investments.
On a consolidated basis, revenue from operations grew by 4% YoY, reaching ₹1,454 crore in Q3 FY25, compared to ₹1,391 crore in Q3 FY24. Despite the revenue increase, net profit declined significantly by 37% YoY, falling from ₹108 crore in Q3 FY24 to ₹68 crore in Q3 FY25. This decline was primarily driven by lower margins and increased costs impacting overall profitability.
For the year-to-date (YTD) FY25 performance on a standalone basis, the company achieved net sales of ₹3,672 crore, a 7% increase from ₹3,428 crore in YTD FY24. EBITDA also improved by 10% YoY to ₹438 crore, up from ₹399 crore, with the EBITDA margin slightly increasing from 11.5% to 11.8%. Net profit rose by 10% YoY, reaching ₹280 crore compared to ₹254 crore in the same period last year, showcasing steady profitability growth.
On a consolidated level, revenue from operations for YTD FY25 stood at ₹4,596 crore, marking an 8% increase from ₹4,241 crore in YTD FY24. However, net profit declined by 6% YoY, amounting to ₹307 crore compared to ₹326 crore in the previous year. While revenue growth remained strong, profitability was impacted by cost pressures and margin fluctuations.
Gauri Kirloskar, Managing Director of KOEL, acknowledged the challenges faced during the quarter, stating, “This quarter presented multiple headwinds. On the B2B side, the expected slowdown in the Powergen segment post-emission norm transition impacted demand. On the B2C front, the consolidation of five plants into one affected production. While the B2B segment registered a 3% growth, the B2C segment saw a 14% decline. However, demand from infrastructure and construction remains strong, and we have successfully transitioned to BS V norms in the industrial segment. We anticipate demand in the power generation market to stabilize in the coming quarters.”
KOEL is a key player in the internal combustion engine, power generation, and agricultural equipment sectors, with a strong presence in international markets. The company specializes in air-cooled and liquid-cooled engines, generator sets (2kVA to 3000kVA), diesel and electric pump sets, power tillers, and specialized marine engines. KOEL operates globally, with offices in the Middle East, Africa, and the United States. The company continues to innovate in alternative fuel solutions, including biodiesel, natural gas, and biogas-powered engines, and is recognized as a leading brand in IoT-connected DG sets.
