Kirloskar Oil Engines Limited (KIRLOSENG) AI Stock Analysis

• Market Cap: ₹162.04B
• Dividend Yield: 0.58%
• Average Volume (3M): 52.95K
• Price to Earnings (P/E): 32.0
• Beta (1Y): 1.76
• 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): 35.85
• Revenue Forecast (FY): ₹61.56B

• Rating: 68 Neutral
• Price Target: ₹1,154.00 ▲(3.50% Upside)

Kirloskar Oil Engines Limited has strong technical indicators with bullish momentum, contributing positively to the stock score. However, financial performance is hindered by high leverage and negative cash flow, and the valuation suggests the stock may be overvalued. These factors collectively result in a moderate overall stock score.

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 (KIRLOSENG) is a leading manufacturer of diesel engines and related products in India, operating primarily in the power generation, agriculture, and industrial sectors. The company specializes in a wide range of products, including diesel engines, generators, and agricultural pumping solutions, establishing a strong presence in both domestic and international markets. KIRLOSENG is committed to innovation and sustainability, offering products that meet various customer needs while adhering to environmental standards.

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: 1114.95
• 50DMA: Positive
• 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 Positive. The current price of 1114.95 is above the 20-day moving average (MA) of 1093.44, above the 50-day MA of 994.16, and above the 200-day MA of 856.54, indicating a neutral trend. The MACD of 38.60 indicates Positive momentum. The RSI at 52.77 is Neutral, neither overbought nor oversold. The STOCH value of 7.84 is Positive, 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
KIRLOSENG	68 Neutral	₹162.04B	31.95	―	0.58%	11.85%	-3.66%
TDPOWERSYS	68 Neutral	₹123.79B	59.44	―	0.21%	40.14%	53.51%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
SWELECTES	57 Neutral	₹10.59B	31.32	―	0.46%	39.01%	-42.51%

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.