Kirloskar Oil Engines

“With the implementation of our pricing adjustments, our active value engineering pipeline, and expanding market opportunities in data centers, international markets, and new technology partnerships, we are confident in our ability to sustain both top-line growth and margin recovery in the quarters ahead.”

“There's a lot of work, but what I can say is we are fully committed to protecting our margins, and we are looking to sequentially improve that.”

“I think the investments are going to continue till 31st of December, and we should start seeing higher margin business, which is essentially the business which we are doing in granular secured retail, and the impact of a better ROA, while the book quality continues to be strong, starting quarter one of next year.”

“Yes. So, as per planned, we will be executing our capex program for this financial year.”

“our power generation business had an exceptional quarter, posting revenues of INR792 crores, a 17% year-on-year increase.”

“A clear indication of this is that our market share in the 1010 kVA node is now upwards of 30%.”

“Our industrial business delivered a steady performance this quarter, recording revenues of INR381 crores, which reflects a 2% increase year- on- year.”

“It is more of an execution. We had some challenge on the execution side, but this doesn't reflect the demand in any way, neither does this reflect our trajectory on the industrial side.”

“Our distribution and aftermarket business unit, or DABU, maintained strong momentum, growing 29% year-on-year to INR293 crores.”

“Another bright spot for us is the traction we are seeing with our Optiprime range, which is now seeing strong demand across key segments like data centers, real estate, hospitality, and manufacturing.”

“The demand continues to be strong, and we continue to move towards our stated 2 billion ambition.”

“Yes, so we are getting a lot of acceptance from all the hyperscalers, colos, neoclouds. We are engaged with most of the data center operators.”

“But we are also fairly prudent about it, and for us, the business only gets real when there is a qualified purchase order and stuff that would make it a tangible contract.”

“We are not seeing openness to elongation of delivery lead times.”

“Despite these, our standalone EBITDA came in at INR191 crores, translating to an EBITDA margin of 11%.”

“While margins compressed year-on-year due to the input price inflation, we held margins broadly stable quarter-on-quarter, softening by just 30 basis points through disciplined operational execution.”

“First, on pricing, we implemented targeted price increases across business units.”

“EBITDA at INR191 crores versus INR204 crores in Q2 FY26, representing a 6% decrease year-on-year, as we absorbed temporary input cost pressures.”

“EBITDA at INR357 crores versus INR376 crores in H1 FY26, registering a 5% decrease year-on-year. EBITDA margin was 11.1% compared to 13.8% in H1 FY26.”

“We maintain a healthy net cash position of INR309 crores, supported by AA+ long-term and A1+ short-term credit ratings.”

“Our cash conversion cycle remains stable at 31 days, showing efficient working capital management despite scaling higher volumes. Net inventory days improved by one day to 63 days as compared to the prior quarter. Net receivables days stood at 43 days”

“Right now, just in terms of some of the numbers, with Tier 1 capital exceeding 21%, leverage is below 3.8x , and GNPA is at approximately 1%.”

“Yes, our cash from operation has been positive for H1 also. Since we are building up the strategic inventory, that's why it got slightly impacted in H1.”

“And even for the project execution, which is happening in this year and coming years, we have to build the inventory. Those are the temporary impact you are seeing on the cash side.”

“Having said that, we remain committed to supporting the long-term growth ambitions, and we will be, and are evaluating appropriate private and public capital raising avenues.”

“This quarter, we also formalized a flexible service agreement with DEUTZ to expand the global distribution of our 1.6 L global standard engine platform, with an initial focus on the Americas.”

“Also this quarter, our newly formed subsidiary, Kirloskar Advanced Systems, completed its maiden commercial billing, marking our entry into specialized high-precision defense and aerospace systems.”

“On Optiprime, we secured an order in Zambia and dispatched our first systems to China, early steps in our international data center and mission-critical journey.”

“We have done our first commercial billing, but we do believe there is a large opportunity out there and we are actively going after it.”

“But our big focus area for certification for Tier 4 final in the U.S. is, one of them is to do with the program that we're working with DEUTZ that Gauri spoke about.”

“Sharp rise in prices of crude oil and commodities like copper, aluminium, and pig iron worked as primary headwinds.”

“Order intake has been significantly stronger than a year ago, and we delivered this growth despite container shortages and shipping delays.”

“On your last question, on the data center order that we have announced, as often happens in physical infrastructure projects, there has been a delay at the customer's end.”

“We're seeing inflation, and given the global geopolitical situation, we're seeing inflation to be a recurring phenomenon, and we will continue to endeavor to pass that on. I don't believe that we are done.”

“Our consolidated quarterly revenue crossed the INR2,000 crores threshold, reaching INR2,257 crores, our best quarter ever, representing a growth of 17% year-on-year”

“On a standalone basis, revenue scaled to an all-time high of INR1,722 crores, registering an increase of 19% year-on-year and 18% sequentially.”

“For the first half of the year, standalone net sales reached INR3,184 crores, which is healthy 17% growth year-on-year.”

“Net profit from continuing operations at INR115 crores versus INR134 crores in Q2 FY26, showing a 14% decrease year-on-year.”

“Net profit from continuing operation at INR214 crores versus INR243 crores in H1 FY26, a 12% decrease year-on-year.”