Kirloskar Oil Engines delivered mixed results for the September quarter, with consolidated net profit declining 19% year-on-year to ₹132 crore compared with ₹163 crore in the corresponding quarter last year. According to latest reports, the company achieved revenue growth of 17.1% to ₹2,284 crore from ₹1,951 crore in the year-ago period, registering an increase of ₹333 crore compared with the corresponding quarter last year. However, EBITDA declined 11.5% to ₹338 crore from ₹382 crore, while EBITDA margin contracted significantly to 14.8% from 19.6% a year earlier, indicating mounting margin pressures across the business. The sharp margin contraction of 480 basis points indicates that operating earnings did not keep pace with revenue growth during the quarter.
The company's three reportable business segments showed varied performance during the quarter. As reported by CNBC TV18, the B2B segment generated revenue of ₹1,715.28 crore compared with ₹1,456.64 crore in the corresponding period last year, while the B2C segment reported revenue of ₹330.18 crore against ₹258.41 crore a year earlier. The financial services segment revenue stood at ₹208.58 crore in Q2 FY27, compared with ₹235.58 crore in the year-ago quarter. Segment results totaled ₹181.26 crore for the quarter, compared with ₹211.74 crore in the year-ago period. Segment results breakdown showed the B2B segment's result at ₹147.59 crore, compared with ₹163.24 crore in the corresponding quarter last year. The B2C segment reported a result of ₹12.87 crore, against ₹18.18 crore year earlier, while the financial services segment's result was ₹6.05 crore, compared with ₹33.52 crore. Despite the higher revenue across all segments, the company's overall profitability declined due to weaker operating margins.
For the half-year period ended September 30, 2026, the company's consolidated revenue from operations stood at ₹4,263.75 crore compared with ₹3,713.72 crore in the corresponding period last year. According to CNBC TV18, net profit for the six-month period was ₹241.37 crore, against ₹298.11 crore year earlier. The company's board approved the unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2026, at its meeting on November 4, with the results subjected to a limited review by the company's statutory auditors. Finance costs for the quarter were ₹5.79 crore, while profit before tax from continuing operations stood at ₹175.47 crore.
Despite the mixed quarterly results showing profit decline and margin compression, Kirloskar Oil Engines shares closed at ₹1,807.70 on the NSE, up ₹89.80 or 5.23%. As reported by CNBC TV18, the positive market reaction suggests investor confidence in the company's ability to navigate current margin pressures and achieve future profitability improvements across its diversified business segments. The market's response appears to focus on the company's double-digit revenue growth despite operational challenges, indicating optimism about long-term prospects. The results were announced on November 4, 2026, with the company's consolidated financial results including its subsidiaries that operate across engines and pumps businesses and financial services.
