New Delhi, Nov 4 — Kirloskar Oil Engines on Wednesday reported a decline in profitability for the second quarter of FY27, as higher revenues failed to offset margin pressures across its key business segments.
The company posted a consolidated net profit of Rs 132 crore for the July-September quarter, down 19 per cent from Rs 163 crore in the corresponding period of the previous financial year (Q2 FY26), according to its stock exchange filing.
Despite the drop in earnings, consolidated revenue from operations rose 17.1 per cent year-on-year to Rs 2,284 crore, compared with Rs 1,951 crore a year earlier.
Operating performance remained under pressure during the quarter.
EBITDA fell 11.5 per cent to Rs 338 crore from Rs 382 crore in the year-ago period, while the EBITDA margin narrowed sharply to 14.8 per cent from 19.6 per cent.
Kirloskar Oil Engines, which operates across engines, pumps and financial services through its subsidiaries, reports its performance under three business segments: business-to-business (B2B), business-to-customer (B2C) and financial services.
The B2B segment continued to be the company's largest revenue contributor, with revenue rising to Rs 1,715.28 crore in the September quarter from Rs 1,456.64 crore a year earlier.
Revenue from the B2C segment increased to Rs 330.18 crore from Rs 258.41 crore in the same period last year.
However, the financial services segment reported a decline in revenue to Rs 208.58 crore from Rs 235.58 crore.
Segment profitability also weakened. The B2B segment reported a result of Rs 147.59 crore, down from Rs 163.24 crore a year earlier, while the B2C segment's result declined to Rs 12.87 crore from Rs 18.18 crore.
The financial services business recorded a sharp fall in segment result to Rs 6.05 crore from Rs 33.52 crore in the corresponding quarter last year.
As a result, total segment results stood at Rs 181.26 crore in the quarter, compared with Rs 211.74 crore a year ago.
Finance costs during the period were Rs 5.79 crore, while profit before tax from continuing operations came in at Rs 175.47 crore.