Kirloskar Oil Engines Q4 Revenue Rises 24% To ₹1,535 Crore, Profit Declines 8%

Mumbai: Kirloskar Oil Engines Ltd reported an 8.3 percent year-on-year decline in standalone net profit to Rs 111.1 crore in Q4 FY26, compared with Rs 121.1 crore in the corresponding quarter last year, even as revenue from operations rose 24.1 percent to Rs 1,534.7 crore.

Sequentially, profit increased from Rs 86.3 crore in Q3 FY26 while revenue improved from Rs 1,380.6 crore, reflecting stronger operational momentum in the final quarter of the fiscal year.

The company’s total income for the quarter stood at Rs 1,543.6 crore against Rs 1,244.5 crore a year ago. Total expenses rose to Rs 1,384.1 crore from Rs 1,120.7 crore, led by higher raw material consumption, employee costs and other operating expenses.

Raw material and component consumption increased to Rs 801.5 crore from Rs 553.9 crore in the year-ago quarter, while purchase of traded goods rose to Rs 202.7 crore.

Sequential growth remained strong during the quarter, with revenue rising 11.2 percent over Q3 FY26 and profit after tax increasing 28.7 percent. Profit before tax stood at Rs 149.9 crore compared with Rs 118.4 crore in the previous quarter.

The company reported an exceptional expense of Rs 9.5 crore in Q4 FY26 related to the incremental impact of the new labour codes, compared with an exceptional expense of Rs 20.1 crore in Q3 FY26.

Kirloskar Oil Engines also recommended a final dividend of Rs 4.50 per equity share for FY26, subject to shareholder approval at the upcoming annual general meeting.

During the quarter, the company allotted 27,795 equity shares under its employee stock option plan, increasing the paid-up share capital marginally to Rs 29.07 crore.

For the full financial year FY26, standalone revenue from operations rose to Rs 5,646.8 crore from Rs 4,520.7 crore in FY25, while net profit increased to Rs 461 crore from Rs 431.9 crore.

Earnings per share for FY26 stood at Rs 31.73 compared with Rs 29.77 in the previous year. The company also completed the transfer of its B2C water management solutions business to its wholly owned subsidiary during the year.

Kirloskar Oil Engines reported stronger revenue growth in FY26 despite higher costs and exceptional expenses linked to labour code implementation and business restructuring activities.

Disclaimer: This report is based on unaudited/audited company filings and is not investment advice.