Kirloskar Oil Engines Limited (KIRLOSENG) AI Stock Analysis

• Market Cap: ₹168.64B
• Dividend Yield: 0.5%
• Average Volume (3M): 52.95K
• Price to Earnings (P/E): 33.3
• Beta (1Y): 1.81
• Revenue Growth: 11.85%
• EPS Growth: -3.66%
• Country: IN
• Employees: 2,376
• Sector: Energy
• Sector Strength: 52
• Industry: Industrial - Machinery
• EPS (TTM): 9.70
• Shares Outstanding: 145,331,420
• 10 Day Avg. Volume: 108,458
• 30 Day Avg. Volume: 52,949
• PEG Ratio: 2.05
• Price to Book (P/B): 3.42
• Price to Sales (P/S): 1.66
• P/FCF Ratio: -10.07
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ₹1,154.00 ▼(-8.47% Downside)

Kirloskar Oil Engines Limited demonstrates strong financial performance with robust revenue and profit growth. Technical indicators show positive momentum, supporting a bullish outlook. However, high leverage and negative cash flow are significant risks, and the stock's valuation appears high, which could limit upside potential.

Positive Factors

Revenue Growth

The company's robust revenue growth indicates successful market expansion and product demand, supporting long-term business sustainability and competitive positioning.

Operational Efficiency

Improved margins reflect enhanced operational efficiency, which can lead to better profitability and competitive advantage in the long term.

Market Position

Strong market position in key sectors provides a stable revenue base and opportunities for growth, reinforcing the company's long-term competitive edge.

Negative Factors

High Leverage

High leverage can increase financial risk and limit flexibility, potentially impacting the company's ability to invest in growth opportunities.

Negative Cash Flow

Persistent negative cash flow may strain liquidity and hinder the company's capacity to fund operations and growth initiatives, posing a long-term risk.

EPS Decline

Declining EPS growth can signal challenges in profitability and shareholder value creation, potentially affecting investor confidence and market perception.

Kirloskar Oil Engines Limited Business Overview & Revenue Model

Company Description

Kirloskar Oil Engines Limited manufactures and distributes diesel engines, agricultural pump sets, electric pump sets, power tillers, generating sets, and spares in India and internationally. The company offers air-cooled and water-cooled engines, and diesel generating sets; and petrol generators used for power back-up in industrial, residential, and commercial establishments. It sells its products under the KOEL i-Green and KOEL Chhota Chilli brands. The company also provides industrial engines for applications in various sectors, such as earth moving, construction, mining, material handling, fluid handling, marine, and off-shore; diesel engines and pump sets for agriculture applications; diesel generating sets for stationary power plants; and marine main propulsion engines and auxiliary generating sets. In addition, it offers financial services. The company serves service industries, such as telecom, IT/ITES, BPO, shopping malls, hotels, hospitals, and banks; educational and financial institutions; infrastructure projects, including airports, roads, bridges, residential and commercial complexes, townships, high-rise buildings, and others; and other industries comprising engineering, manufacturing, FMCG, automobile and auto ancillaries, textile, pharmaceuticals, dairy, and food processing; and defense agencies, such as the air force, army, and navy, as well as the coast guard. The company was formerly known as Kirloskar Engines India Limited and changed its name to Kirloskar Oil Engines Limited in March 2010. Kirloskar Oil Engines Limited was founded in 1946 and is based in Pune, India.

How the Company Makes Money

KIRLOSENG generates revenue primarily through the sale of diesel engines and generators, which are utilized in various applications, including agriculture, construction, and industrial operations. The company has established key revenue streams from its core products, including stationary engines, portable generators, and agricultural pumps. Additionally, KIRLOSENG benefits from service contracts, spare parts sales, and maintenance services, contributing to recurring revenue. Strategic partnerships with distributors and collaborations with agricultural and industrial stakeholders enhance market reach and drive sales. Furthermore, KIRLOSENG's focus on research and development allows it to innovate and introduce new products, catering to evolving market demands and enhancing profitability.

Kirloskar Oil Engines Limited Financial Statement Overview

Summary

Kirloskar Oil Engines Limited demonstrates strong revenue and profit growth with improving operational margins, reflecting robust underlying performance. However, the high leverage and negative cash flow present challenges that need addressing to ensure sustainable financial health. The company should focus on managing its debt levels and improving cash flow generation to enhance stability.

Income Statement

Kirloskar Oil Engines Limited has shown strong revenue growth with a consistent increase over the past years, reaching 63,491 million INR in 2025 from 32,548 million INR in 2021. The company has improved its gross profit margin substantially, reaching 43.71% in 2025. The EBIT margin has also seen a notable increase, indicating improved operational efficiency. While the company has managed consistent net income growth, the net profit margin remains moderate at 7.71% in 2025. Overall, the income statement reflects a positive growth trajectory with improving profitability.

Balance Sheet

The company's balance sheet shows a substantial increase in total assets and stockholders' equity over the years, reflecting solid growth. However, the debt-to-equity ratio is high at 1.89 in 2025, indicating potential leverage risks. The equity ratio has improved, suggesting better financial stability. Despite these strengths, the high debt levels could pose risks if not managed carefully.

Cash Flow

Cash flow analysis reveals challenges with consistently negative free cash flow over the years, reaching -10,471 million INR in 2025. The operating cash flow remains negative, which may impact liquidity. However, there is a positive trend in financing cash flows, indicating the company's efforts to manage its cash requirements. Despite these efforts, the negative cash flow metrics highlight areas for improvement in cash management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	64.71B	63.49B	58.98B	49.68B	39.79B	32.55B
Gross Profit	28.25B	27.74B	23.53B	14.82B	10.24B	9.12B
EBITDA	12.53B	11.91B	10.19B	7.45B	4.25B	3.97B
Net Income	4.72B	4.89B	4.42B	3.32B	1.75B	1.95B
Balance Sheet
Total Assets	0.00	104.80B	82.78B	67.25B	50.30B	38.01B
Cash, Cash Equivalents and Short-Term Investments	14.96B	15.07B	9.46B	8.41B	8.18B	10.38B
Total Debt	0.00	58.19B	41.42B	32.44B	19.65B	8.49B
Total Liabilities	-30.57B	74.24B	56.18B	44.21B	29.49B	18.79B
Stockholders Equity	30.57B	30.86B	26.76B	23.04B	20.82B	19.22B
Cash Flow
Free Cash Flow	0.00	-10.47B	-8.64B	-10.82B	-11.66B	-1.21B
Operating Cash Flow	0.00	-7.39B	-4.69B	-9.20B	-10.41B	-159.40M
Investing Cash Flow	0.00	-5.23B	-1.09B	-1.44B	-29.30M	-4.65B
Financing Cash Flow	0.00	15.09B	8.00B	11.82B	9.50B	5.99B

Kirloskar Oil Engines Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1260.80
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:KIRLOSENG, the sentiment is Neutral. The current price of 1260.8 is above the 20-day moving average (MA) of 1233.56, above the 50-day MA of 1149.34, and above the 200-day MA of 932.05, indicating a neutral trend. The MACD of 8.40 indicates Positive momentum. The RSI at 39.34 is Neutral, neither overbought nor oversold. The STOCH value of 8.81 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:KIRLOSENG.

Kirloskar Oil Engines Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KIRLOSENG	68 Neutral	₹168.64B	33.25	―	0.50%	11.85%	-3.66%
TDPOWERSYS	68 Neutral	₹105.07B	50.45	―	0.23%	40.14%	53.51%
RELTD	66 Neutral	₹25.21B	38.46	―	―	483.21%	―
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
SWELECTES	57 Neutral	₹8.90B	26.32	―	0.47%	39.01%	-42.51%

Kirloskar Oil Engines Limited Corporate Events

Kirloskar Oil Engines Renames Wholly Owned Subsidiary as KOEL Fluid Dynamics

Kirloskar Oil Engines Limited has announced that its wholly owned subsidiary, previously known as La-Gajjar Machineries Private Limited, has received approval from the Registrar of Companies to change its name to KOEL Fluid Dynamics Private Limited, effective from 8 January 2026. The rebranding of the subsidiary, which aligns more closely with the KOEL identity, signals a strategic move to integrate its operations and branding under a unified corporate umbrella, potentially strengthening market recognition and positioning within its fluid and engine-related business segments.

Kirloskar Oil Engines Engages Investors in Operational Overview Discussions

Kirloskar Oil Engines Limited conducted investor meetings on December 8, 2025, with Axis Capital Limited and Bajaj Allianz Life Insurance to discuss the company’s operational overview. The meetings were held virtually and no unpublished price sensitive information was disclosed, indicating a focus on transparency and maintaining regulatory compliance.

Kirloskar Oil Engines Engages Investors with Operational Insights

Kirloskar Oil Engines Limited held investor meetings on December 8, 2025, with Axis Capital Limited and Bajaj Allianz Life Insurance. These discussions provided an operational overview of the company, ensuring no unpublished price-sensitive information was disclosed. The meetings are part of the company’s ongoing efforts to maintain transparency and communication with stakeholders, aligning with SEBI regulations.