Kirloskar Oil Engines Limited, a manufacturer of engines and power generation equipment, reported broad-based demand across its domestic and international markets in the second quarter of FY26, led by continued expansion of its high-horsepower product range and strong traction in industrial applications. The company said its high-horsepower (HHP) genset portfolio has expanded meaningfully, with recent customer wins in nodes such as 1,500 kilovolt-ampere, 2,000 kilovolt-ampere and 2,500 kilovolt-ampere, along with ongoing execution of six-megawatt genset orders.
The company stated that infrastructure, commercial real estate and residential developments remain the major contributors to HHP growth. “Having these wins demonstrates that we are able to prove to the customer that product is worthy, and can also compete in that space,” said Gauri Kirloskar, Managing Director. She added that demand in power generation continues to remain “broad-based” across customer segments.
Industrial demand remained strong, supported by defence procurement and railway applications. The company has progressed on emergency defence orders and has completed detailed design work for a major naval programme. In Railways, Kirloskar Oil Engines introduced a new 400-horsepower engine for maintenance vehicles and reported increased execution in power car applications. “Heavy execution ended up happening in this quarter, which has helped from a sales standpoint,” said Chief Executive Officer Rahul Sahai.
Exports continued to expand, led by the Middle East and Africa, which contributed about 60 percent of international revenue during the quarter. The company said performance in the region has stabilised following the rollout of a genset original-equipment manufacturing model. “That hard work and challenging work is actually complete. So, we are quite optimistic now about the growth that we will see from that region,” the Managing Director said. The company also reiterated that the North American market remains a long-term opportunity, citing the need for product certification and distribution development.
The company has completed the transfer of its business-to-consumer operations into its wholly owned subsidiary, LGM, through a slump sale aimed at improving organisational effectiveness within the segment, which is now referred to as Fluid Dynamics. The business reported year-on-year growth supported by its highest monthly billing in September.
Financial results for the quarter showed consolidated revenue from continuing operations at INR 19.48 billion, an increase of 30 percent from a year earlier. Stand-alone revenue totalled INR 15.93 billion. Net profit for the period was INR 1.59 billion on a consolidated basis and INR 1.41 billion on a stand-alone basis. “We crossed INR 15 billion mark first time ever, registering a 35 percent net sales growth year-on-year and 11 percent quarter-on-quarter,” said Chief Financial Officer Sachin Kejriwal.
Kirloskar Oil Engines Limited manufactures engines, power generation systems and industrial solutions for the power generation, construction, mining, defence and railway sectors.
