KOEL Stock Rallies Nearly 100% in a Year After Record FY26 Results and $2 Billion FY30 Target

Kirloskar Oil Engines Limited (KOEL) reported record financial performance for FY26, supported by strong revenue growth, higher profitability, improved margins, and expansion across its industrial and power solutions business.

The company reported standalone sales growth of 25% during FY26, while consolidated revenue crossed ₹7,700 crore. Net profit also witnessed strong improvement, helping KOEL stock deliver nearly 100% returns over the last one year.

Management also outlined an ambitious long-term roadmap during the post-results conference call, targeting $2 billion in revenue by FY30. To support future growth, the company announced a planned capital expenditure of ₹1,400 crore during FY27 and FY28 for capacity expansion at its Kagal plant.

The company stated that the new High Horsepower (HHP) production capacity could potentially generate ₹5,000–6,000 crore in peak annual revenue.

KOEL Reports Record FY26 Financial Performance

Kirloskar Oil Engines delivered strong operational and financial growth during FY26 across both standalone and consolidated businesses.

Standalone sales for FY26 rose 25% year-on-year to ₹5,604 crore, while EBITDA increased 33% and net profit rose 35%.

Standalone Financial Performance

Metric	Q4 FY26	Q4 FY25	YoY Growth	FY26	FY25	YoY Growth
Sales	₹1,522 Cr	₹1,225 Cr	24%	₹5,604 Cr	₹4,481 Cr	25%
Revenue from Operations	₹1,535 Cr	₹1,236 Cr	24%	₹5,647 Cr	₹4,521 Cr	25%
EBITDA	₹193 Cr	₹152 Cr	27%	₹737 Cr	₹552 Cr	33%
EBITDA Margin	12.60%	12.30%	—	13.10%	12.20%	—
Net Profit	₹118 Cr	₹92 Cr	28%	₹464 Cr	₹343 Cr	35%

The company’s EBITDA margin improved to 13.1% during FY26 from 12.2% in FY25.

Management attributed growth to strong business momentum, operational efficiency, and higher contribution from industrial and power solution businesses.

Consolidated Revenue Crosses ₹7,700 Crore

At the consolidated level, KOEL reported strong growth in both revenue and profitability during FY26.

Revenue from operations increased 22% year-on-year to ₹7,701 crore, while consolidated Profit After Tax rose 40%.

Consolidated Financial Performance

Metric	Q4 FY26	Q4 FY25	YoY Growth	FY26	FY25	YoY Growth
Revenue from Operations	₹2,116 Cr	₹1,749 Cr	21%	₹7,701 Cr	₹6,329 Cr	22%
PAT	₹162 Cr	₹111 Cr	47%	₹582 Cr	₹416 Cr	40%

The company’s consolidated total assets stood at ₹10,852 crore as of March 31, 2026.

KOEL Targets $2 Billion Revenue by FY30

One of the biggest highlights from the company’s investor conference call was management’s long-term growth guidance.

KOEL stated that it is progressing toward becoming a $2 billion revenue company by FY30.

To support this growth target, the company announced a major capital expenditure plan focused on expanding High Horsepower engine manufacturing capacity.

Key FY30 Growth Roadmap

Parameter	Details
Revenue Target	$2 Billion by FY30
Planned CapEx	₹1,400 Crore
CapEx Timeline	FY27–FY28
Expansion Location	Kagal Plant
Focus Area	High Horsepower Capacity
Potential Peak Revenue	₹5,000–6,000 Crore
Expected Asset Turn	4–5x

Management stated that the new production infrastructure at the Kagal plant will primarily support High Horsepower engine manufacturing while also strengthening international business opportunities.

Kagal Plant Expansion to Drive Future Growth

The ₹1,400 crore capital expenditure will be invested in:

• New production lines
• Capacity augmentation
• Manufacturing infrastructure
• High Horsepower engine expansion
• International market demand support

The company believes the investment can significantly improve manufacturing scale and revenue generation over the long term.

Management also stated that the previously announced ₹700 crore CapEx project for 50,000 engines is expected to become operational by April next year.

The expansion highlights rising demand for industrial engines, power solutions, and export-oriented manufacturing capabilities.

Dividend Announcement for FY26

The Board of Directors recommended a final dividend of ₹4.50 per equity share for FY26.

This is in addition to the interim dividend of ₹2.50 per share already paid during the year.

FY26 Dividend Details

Dividend Type	Amount
Interim Dividend	₹2.50 per share
Final Dividend	₹4.50 per share
Total FY26 Dividend	₹7.00 per share
Dividend Payout Percentage	350%

The final dividend remains subject to shareholder approval.

Corporate Developments During FY26

KOEL also undertook several strategic business restructuring and expansion initiatives during FY26.

Major Corporate Developments

Development	Details
B2C Business Transfer	Water Management Solutions business transferred to subsidiary
Effective Date	October 11, 2025
New Subsidiary	Kirloskar Advanced Systems Private Limited
Initial Investment	Up to ₹9 crore
ESOP Shares Allotted	27,795 equity shares

The company transferred its Water Management Solutions domestic and export business to KOEL Fluid Dynamics Private Limited through a slump sale structure.

KOEL also incorporated a new wholly owned subsidiary, Kirloskar Advanced Systems Private Limited.

Why Investors Are Bullish on KOEL Stock

KOEL stock has delivered nearly 100% returns over the past one year, supported by:

• Strong revenue growth
• Margin expansion
• Rising profitability
• Aggressive CapEx plans
• Long-term growth guidance
• Industrial demand recovery
• Export expansion opportunities

Investors are also optimistic about the company’s High Horsepower engine business and international growth potential.

The planned manufacturing expansion and revenue target roadmap have further strengthened long-term growth expectations.

About Kirloskar Oil Engines Limited

Kirloskar Oil Engines Limited is one of India’s industrial engine and power solution companies.

The company operates across multiple segments including:

• Industrial engines
• Power generation solutions
• Agriculture applications
• Construction equipment engines
• Water management systems
• Industrial power solutions

KOEL continues expanding its domestic and international business presence through manufacturing investments and product portfolio expansion.

Conclusion

Kirloskar Oil Engines delivered record FY26 financial performance with strong revenue growth, higher margins, and a 35% rise in standalone profit.

The company’s ambitious $2 billion FY30 revenue target, ₹1,400 crore CapEx roadmap, and expansion of High Horsepower manufacturing capacity at the Kagal plant have strengthened long-term growth expectations.

With improving industrial demand, export opportunities, and manufacturing expansion plans, KOEL continues positioning itself for long-term growth in India’s industrial and power solutions sector.

FAQs

What were KOEL’s standalone sales in FY26?

Kirloskar Oil Engines Limited (KOEL) reported standalone sales of ₹5,604 crore during FY26, reflecting 25% year-on-year growth.

How much did KOEL’s net profit grow in FY26?

KOEL’s standalone net profit increased 35% year-on-year to ₹464 crore during FY26.

What was KOEL’s consolidated revenue in FY26?

The company reported consolidated revenue from operations of ₹7,701 crore during FY26 compared to ₹6,329 crore in FY25.

What is KOEL’s FY30 revenue target?

Management has outlined a target of becoming a $2 billion revenue company by FY30.

How much CapEx is KOEL planning for expansion?

KOEL plans to invest approximately ₹1,400 crore in capital expenditure during FY27 and FY28.

Where will KOEL’s new manufacturing expansion take place?

The expansion will primarily take place at the company’s Kagal plant.

What is the focus area of the Kagal plant expansion?

The expansion is focused on increasing High Horsepower (HHP) engine manufacturing capacity.

What revenue potential does KOEL expect from the new CapEx?

Management expects the new High Horsepower capacity to potentially generate ₹5,000–6,000 crore in peak revenue.

What dividend did KOEL announce for FY26?

KOEL recommended a final dividend of ₹4.50 per share in addition to the interim dividend of ₹2.50 per share already paid, taking the total FY26 dividend to ₹7 per share.

What major corporate restructuring did KOEL undertake during FY26?

The company transferred its Water Management Solutions (WMS) B2C business to its wholly owned subsidiary KOEL Fluid Dynamics Private Limited through a slump sale arrangement.