India · Delayed Price · Currency is INR Kirloskar Oil Engines Earnings Call Transcripts
Fiscal Year 2026
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Q3 saw record sales and robust year-on-year growth across all segments, with significant margin improvement and strong cash flow. The high horsepower and industrial segments led growth, while strategic restructuring and international expansion support long-term targets.
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Record quarterly and H1 sales were achieved, with strong double-digit growth across Power Generation, Industrial, and international segments. Margins improved, the B2C business was restructured, and ARCA expanded retail lending. Management remains optimistic but cautious amid geopolitical risks.
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Q1 FY26 saw record sales and margin expansion, led by strong domestic and international demand, especially in Power Gen and B2B segments. Strategic divestitures and product innovation supported growth, while financial services and industrial segments faced some headwinds.
Fiscal Year 2025
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Achieved record sales and margin expansion in FY25, with strong growth in HHP gensets and international exports. ARKA's AUM surpassed INR 7,200 crores, and the group set a new $2 billion revenue target for FY2030, backed by major investments and a focus on technology and retail finance.
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Q3 FY25 saw modest revenue growth but lower profits due to emission norm changes and plant consolidation, with B2B segments showing resilience and HHP demand rising. Margins were pressured, but management expects recovery as market demand normalizes and new facilities ramp up.
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Q2 FY25 saw 13% year-on-year standalone sales growth, margin expansion, and strong B2B performance, despite sequential decline due to pre-buying. New Sanand facility and robust financial services growth support long-term ambitions, while export and Powergen markets face transitional challenges.
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Record Q1 sales and profit growth driven by strong B2B, B2C, and international performance, with EBITDA margin up 250 bps year-on-year. Transition to CPCB IV+ and capacity expansion support long-term growth ambitions, while margin improvement is expected from aftermarket and service revenue.