NEW DELHI–Kirloskar Oil Engines reported a 19% decline in consolidated net profit for the second quarter of fiscal 2027, as weaker operating margins and declining profitability across its major business segments offset double-digit revenue growth.
The Indian engine and power equipment manufacturer posted a net profit of Rs 132 crore for the July-September quarter, compared with Rs 163 crore during the same period last year, according to a stock exchange filing released Wednesday.
Consolidated revenue from operations increased 17.1% to Rs 2,284 crore, up from Rs 1,951 crore in the corresponding quarter of fiscal 2026.
Despite higher sales, the company’s operating earnings declined. Earnings before interest, taxes, depreciation and amortization (EBITDA) fell 11.5% to Rs 338 crore from Rs 382 crore a year earlier.
The EBITDA margin contracted to 14.8%, compared with 19.6% in the previous year’s second quarter, highlighting the pressure on profitability despite expanding revenue.
Kirloskar Oil Engines operates across engines, pumps and financial services through its subsidiaries. The company reports its financial performance through three primary segments: business-to-business (B2B), business-to-consumer (B2C) and financial services.
Its B2B division remained the largest contributor to overall revenue, generating Rs 1,715.28 crore during the September quarter, compared with Rs 1,456.64 crore a year earlier.
The B2C segment also recorded revenue growth, with sales climbing to Rs 330.18 crore from Rs 258.41 crore in the corresponding period last year.
However, the financial services division experienced a decline in revenue, falling to Rs 208.58 crore from Rs 235.58 crore.
Profitability weakened across all three business segments.
The B2B segment reported earnings of Rs 147.59 crore, down from Rs 163.24 crore in the previous year’s second quarter. The B2C segment’s earnings declined to Rs 12.87 crore from Rs 18.18 crore.
The financial services business recorded the steepest decline in segment profitability, with earnings falling to Rs 6.05 crore from Rs 33.52 crore a year earlier.
Combined segment results declined to Rs 181.26 crore during the quarter, compared with Rs 211.74 crore in the corresponding period of fiscal 2026.
The company reported finance costs of Rs 5.79 crore for the quarter, while profit before tax from continuing operations stood at Rs 175.47 crore.
The quarterly results reflect the challenges facing Kirloskar Oil Engines as it seeks to sustain revenue growth while managing shrinking margins across its industrial equipment and financial services businesses. (Source: IANS)
