Q1 2027 Kirloskar Oil Engines Ltd Earnings Call Transcript
Key Points
- Domestic businesses delivered broad-based growth across all major operating segments, with standalone revenue up 16% YoY to INR1,461 crores.
- Power generation grew 18%, industrial 19%, and distribution/aftermarket 20%, reflecting strong execution and market share gains.
- Secured a landmark 192 MW hyperscale data center order, validating the OptiPrime modular power platform and opening a new growth avenue.
- Industrial segment saw strong performance in marine (up 125%) and railways (up 62%), with a landmark oil & gas order for natural gas gensets up to 500 kVA.
- Balance sheet strengthened with total borrowings reduced from INR167 crore to INR77 crore, working capital improved by 11 days, and credit rating upgraded to AA.
- International business declined 11% YoY due to geopolitical uncertainty and weak export markets, particularly in the Middle East, impacting overall mix and operating leverage.
- EBITDA margin contracted to 11.2% from 13.5% YoY, driven by lower export volumes, elevated commodity costs, and timing differences between cost inflation and price realization.
- Employee costs rose sharply by ~40% YoY due to annual increments, ESOP expenses, and capability additions, pressuring profitability.
- Consolidated net profit declined 17% YoY to INR111 crores, reflecting margin pressures across segments.
- Financial services segment (ARCA) saw PBIT decline 31% YoY, indicating weaker profitability despite revenue growth.
Ladies and gentlemen, good day and welcome to the Kirloskar Oil Engines Limited Q1 FY27 Earnings Conference Call hosted by Antic Stock Broking Limited. (Operator Instructions). I now hand the conference over to Mr. Sanjeev Zarbade.
Thank you and over to you sir.
Thank you Anushka.
Good evening everyone.
On behalf of Antique Stock Broking Limited, I extend a warm welcome to all participants. Joining us for the 1Q FY27 post earnings conference call of Kirloskar Oil Engines Limited.
We are pleased to have with us the senior management team of the company comprising Ms. Gauri Kirloskar, Managing Director, Mr. Rahul Sahai, Chief Executive Officer and Mr. Sachin Kejriwal, the Chief Financial Officer.
The management will begin the call with their opening remarks on the company's performance during the quarter and the business outlook. This will be followed by a question-and-answer session where participants will have the opportunity to interact
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