Kirloskar Oil Engines Limited (KIRLOSENG) AI Stock Analysis

• Market Cap: ₹140.12B
• Dividend Yield: 0.67%
• Average Volume (3M): 29.52K
• Price to Earnings (P/E): 29.7
• Beta (1Y): 1.70
• Revenue Growth: 8.02%
• EPS Growth: -0.95%
• Country: IN
• Employees: 2,376
• Sector: Energy
• Sector Strength: 52
• Industry: Industrial - Machinery
• EPS (TTM): 8.55
• Shares Outstanding: 145,295,140
• 10 Day Avg. Volume: 42,272
• 30 Day Avg. Volume: 29,523
• 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): 35.3
• Revenue Forecast (FY): ₹61.43B

• Rating: 61 Neutral
• Price Target: ₹941.00 ▲(6.67% Upside)

Kirloskar Oil Engines Limited's overall stock score is primarily influenced by strong financial performance, despite challenges in cash flow and high leverage. The technical analysis indicates bullish momentum, but overbought signals suggest caution. Valuation metrics highlight the stock's relatively high price, which may limit upside potential. Investors should monitor financial health improvements and market conditions closely.

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: Positive
• Last Price: 882.15
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:KIRLOSENG, the sentiment is Positive. The current price of 882.15 is below the 20-day moving average (MA) of 935.65, below the 50-day MA of 920.87, and above the 200-day MA of 835.61, indicating a bullish trend. The MACD of 24.95 indicates Negative momentum. The RSI at 54.32 is Neutral, neither overbought nor oversold. The STOCH value of 65.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
TDPOWERSYS	68 Neutral	₹121.95B	58.57	―	0.21%	40.14%	53.51%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
KIRLOSENG	61 Neutral	₹140.12B	29.67	―	0.67%	8.02%	-0.95%
SWELECTES	59 Neutral	₹11.55B	43.00	―	0.39%	103.45%	-53.21%

Kirloskar Oil Engines Limited Corporate Events

Kirloskar Oil Engines Transfers B2C Segment to Subsidiary

Kirloskar Oil Engines Limited has announced the transfer of its Business to Customer (B2C) segment to its wholly-owned subsidiary, La-Gajjar Machineries Private Limited, through a slump sale. This strategic move, effective from October 11, 2025, involves the issuance of equity shares of La-Gajjar Machineries to Kirloskar Oil Engines, potentially streamlining operations and enhancing focus on core business areas.

Kirloskar Oil Engines Opens Special Window for Share Transfer Requests

Kirloskar Oil Engines Limited has announced the opening of a special window for the re-lodgement of transfer requests for physical shares, as per the SEBI Circular. This initiative, available from July 1, 2025, to January 6, 2026, aims to facilitate the transfer of shares lodged before April 1, 2019, which were previously rejected or unattended. This move is expected to streamline the process by ensuring that all re-lodged shares are processed in dematerialized form, thus enhancing operational efficiency and compliance with regulatory standards.

Kirloskar Oil Engines Faces GST Show Cause Notice

Kirloskar Oil Engines Limited has received a Show Cause Notice from the Department of Goods and Services Tax, Maharashtra, regarding a misclassification issue in outward supply due to HSN. The notice includes a penalty, interest, and tax demand totaling over Rs. 8 crore. Despite this, the company does not anticipate any material impact on its financial or operational activities.

Kirloskar Oil Engines Schedules Investor Meetings for August 2025

Kirloskar Oil Engines Limited has announced a schedule of meetings with investors, analysts, and financial institutions on August 8, 2025. These meetings, which include virtual group meetings and one-on-one sessions with firms like Phillip Capital, ICICI Pru MF, and Edelweiss MF, are part of the company’s regulatory obligations under SEBI’s disclosure requirements. This engagement reflects the company’s ongoing efforts to maintain transparency and communication with key stakeholders, potentially impacting its market perception and investor relations.

Kirloskar Oil Engines Schedules Investor Meetings for August 8, 2025

Kirloskar Oil Engines Limited has announced a series of virtual meetings with investors and financial institutions scheduled for August 8, 2025. These meetings, organized under SEBI regulations, aim to engage with stakeholders such as Phillip Capital, ICICI Pru MF, and Edelweiss MF, potentially impacting the company’s investor relations and market perception.

Kirloskar Oil Engines Schedules Investor Meetings for August 2025

Kirloskar Oil Engines Limited has announced a schedule of virtual meetings with investors, analysts, and financial institutions, which will take place on August 8, 2025. These meetings, organized under SEBI regulations, are aimed at facilitating interactions with key financial stakeholders, potentially impacting the company’s investor relations and market positioning.

Kirloskar Oil Engines Schedules Investor Meetings for August 2025

Kirloskar Oil Engines Limited announced a schedule for upcoming virtual meetings with investors, analysts, and financial institutions on August 8, 2025. These interactions, including group meetings and one-on-one sessions, are part of the company’s efforts to engage with stakeholders and provide updates on its operations and financial performance.

Kirloskar Oil Engines to Discuss Q1 Financial Results in Upcoming Conference Call

Kirloskar Oil Engines Limited has announced a conference call scheduled for August 7, 2025, to discuss its unaudited financial results for the quarter ending June 30, 2025. This call, which will feature the company’s senior management, aims to provide insights into the company’s financial performance and strategic direction, potentially impacting investor and analyst perceptions.