Shares of Kirloskar Oil Engines Ltd jumped 10.92% to Rs 1,048.60 in early trade on Wednesday, November 12, after the company reported strong financial performance for the quarter ended September 2025 (Q2 FY26). The sharp rally follows a solid earnings beat and management’s announcement of a strategic restructuring to sharpen business focus.
Q2 FY26 results highlight robust growth
The company reported a 27.4% year-on-year increase in net profit to Rs 162.46 crore, compared to Rs 127.51 crore in the same period last year.
Revenue grew 30% YoY to Rs 1,948.4 crore, up from Rs 1,498.6 crore a year earlier, supported by strong momentum in its business-to-business (B2B) segment.
EBITDA rose 28.5% YoY to Rs 381.75 crore, compared to Rs 297.18 crore last year, while operating margins remained stable at 19.6%, against 19.8% in the corresponding quarter, reflecting consistent profitability despite higher input costs.
B2B segment leads growth
Revenue from the B2B segment, which includes the production, sales, and servicing of engines, gensets, electric motors, spare parts, oils, and farm equipment, stood at Rs 1,456.64 crore, up from Rs 1,089.13 crore a year earlier. The segment continues to drive a significant share of the company’s topline growth.
Management commentary and restructuring plan
Commenting on the results, Gauri Kirloskar, Managing Director of Kirloskar Oil Engines, said,
“On October 10th, we also announced a strategic restructuring of our B2C operations, transferring this business to our wholly-owned subsidiary, La-Gajjar Machineries Private Limited, through a slump sale. This step strengthens our focus and aligns with our long-term strategic vision to reach a $2 billion top line by 2030. We are encouraged by the progress made and remain focused on executing our strategic priorities with discipline and consistency.”
The company added that the restructuring will allow a sharper focus on B2B operations, while the B2C business will continue under La-Gajjar Machineries, enabling both verticals to pursue their growth opportunities more efficiently.
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