Spanning 4 listed corporations—Kirloskar Oil Engines Ltd (KOEL), Kirloskar Pneumatic Firm Ltd, Kirloskar Ferrous Industries Ltd and Kirloskar Industries Ltd—the group plans to speculate ₹5,000 crore over the approaching three years in new manufacturing capacities, mentioned Rahul Kirloskar, chairman of Kirloskar Pneumatic and Kirloskar Ferrous.
The group’s income development has been stagnant over the previous decade, largely because of a scarcity of recent merchandise. Nevertheless, a turnaround that started about three years in the past has resulted in a pointy income uptick throughout corporations. Shareholder curiosity within the shares has picked up, too, with inventory costs surging throughout the 4 corporations in 2023 and 2024. The shares have since pared a few of the good points, with all 4 shares dropping over 1 / 4 because the starting of 2025.
“We now have switched gears and we see a vibrant future forward of us,” Kirloskar mentioned.
The interval of stagnation coincided with the protracted battle throughout the Kirloskar household, with Atul and Rahul on one facet and their brother Sanjay Kirloskar, who heads the listed Kirloskar Brothers Ltd, on the opposite. The acrimony, stemming from the division of property, persists.
Progress path
The group’s income development is anticipated to return primarily from KOEL, which reported a topline of ₹5,073 crore in fiscal 12 months 2025 (FY25). The corporate is aiming for $2 billion in revenues (about ₹17,700 crore) by 2030.
Led by Gauri Kirloskar, the daughter of Atul and Aarti Kirloskar, the corporate is in the midst of a metamorphosis with an entry into new segments like high-horsepower engines and engines operating on different fuels in addition to diesel. KOEL traditionally makes diesel engines used for energy technology and in industrial functions.
“We went from saying we’re a diesel engine producer to saying we’re an inner combustion engine producer who can run on each gasoline,” mentioned Gauri Kirloskar, the corporate’s managing director.
“What we actually wish to place ourselves as within the subsequent 5 years is that we’re a world expertise chief with regards to energy options,” she mentioned. This contains inner combustion engines, hybrid engines, and gasoline cells, she mentioned.
The corporate’s greatest development engine could be gross sales of backup energy turbines to knowledge centres—a enterprise that it’s planning to enter and scale quickly. It’s going to additionally give attention to increasing its exports, which now profit from comparable emission norms in India and key Western markets just like the US and Europe. The corporate can even give impetus to scaling its present however small railways and defence companies.
When the youthful Kirloskar took over as KOEL’s managing director in 2022, she set a imaginative and prescient of doubling enterprise in three years. Since then, the corporate has managed to scale its income 1.6 occasions, and its revenue has greater than doubled. Kirloskar attributes this turnaround to discovering the proper management for every of the corporate’s companies.
“We have been capable of present a platform for leaders to see a development path throughout the firm and have a level of autonomy,” she mentioned.
The corporate has a market capitalization of slightly below ₹13,000 crore in comparison with Kirloskar Pneumatic ( ₹7,600 crore), Kirloskar Ferrous ( ₹8,500 crore) and Kirloskar Industries ( ₹4,100 crore). Kirloskar Pneumatic makes a spread of compressors for industrial functions, whereas Kirloskar Ferrous makes merchandise from iron casting. Kirloskar Industries is a holding firm.
Realty foray, NBFC development
Arka Fincap Ltd, a non-bank monetary firm (NBFC) and a subsidiary of KOEL, is trying to pivot into retail lending by financing used car purchases and providing small-ticket loans in opposition to property. The non-bank lender has a ₹6,000 crore loanbook break up between wholesale loans to actual property corporations and loans in opposition to property with a mean ticket measurement of ₹1 crore.
KOEL plans to spin off Arka Fincap, established in 2018, right into a individually listed firm by 2030, Gauri Kirloskar mentioned.
In the meantime, the group has additionally began an actual property enterprise, which can use its vacant land parcels. It has already constructed its first constructing of 150,000 sq. toes within the Kothrud neighborhood of Pune—all Kirloskar group corporations have moved their headquarters to this constructing. It’s now growing a second constructing in the identical location with 1.5 million sq. toes of flooring house. The undertaking might be prepared for leasing out by 2028, mentioned Rahul Kirloskar. “The intention is, over the subsequent 5 years or so, to develop this enterprise and construct it as much as scale.”
Analysts upbeat
“KOEL strategically restructuring its enterprise to bolster group values and cultivating a powerful tradition has helped it not solely to arrange for the 2X-3Y (double enterprise in three years) journey but additionally to take a look at the bigger image of reaching $2 billion by FY30,” analysts at Vintage Inventory Broking famous on 8 August.
Analysts at JM Monetary on 7 August mentioned that the brand new product launches within the excessive horsepower phase, push on exports, demand restoration within the home energy technology sector and a wholesome industrial phase outlook augur nicely for the corporate within the medium to future.
Analyst stays optimistic on Kirloskar Pneumatic and Kirloskar Ferrous as nicely.
