Kirloskar Oil Engines Q4 profit rises 21% despite labour code hit; ₹4.5 dividend declared

Kirloskar Oil Engines on Wednesday, May 14, reported a rise in fourth-quarter profit and revenue, driven by strong demand across its power generation and industrial businesses.

The company posted a net profit of ₹158.6 crore for the quarter ended March 31, up 21% from ₹131 crore a year earlier.

Revenue from operations rose 21% year-on-year to ₹2,116.2 crore, while EBITDA increased 19.8% to ₹375.5 crore, according to an exchange filing.

The EBITDA margin remained largely flat at 18% compared to the year-ago quarter.

Kirloskar Oil Engines said quarterly performance was supported by growth across low, medium and high horsepower power-generation segments, along with momentum in marine, railways and construction-related industrial applications.

The company, however, recorded an exceptional item impact of ₹32.45 crore linked to proposed labour code-related regulatory changes.

Commenting on the results, Vice Chairperson and Managing Director Gauri Kirloskar said the company delivered its highest quarterly sales during FY26, aided by execution focus, market-share gains in power generation and improved traction in international markets.

Separately, the board recommended a final dividend of ₹4.5 per share for FY26, subject to shareholder approval. Including the interim dividend of ₹2.5 per share already declared, the total dividend for the fiscal year stands at ₹7 per share, or 350% of face value.

Shares of Kirloskar Oil Engines ended marginally lower on 0.29% at ₹1,594.90 on the NSE today, May 14.

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