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Kirloskar Oil Engines Limited (KIRLOSENG) AI Stock Analysis

IN:KIRLOSENG

Kirloskar Oil Engines Limited

(NSE:KIRLOSENG)

Select Model
Rating:60Neutral
Price Target:INR 1,811.00â–²(4.96% Upside)
Action:reiterated
Date:09/30/26

The score is primarily tempered by mixed financial quality—strong growth and solid profitability are offset by high leverage and a historically weak cash-flow track record despite a strong 2026 cash-flow rebound. Technicals are constructive with a clear uptrend and positive momentum, but valuation is a meaningful headwind due to a high P/E and low dividend yield.

Positive Factors
Revenue and earnings growthSustained revenue and net-income growth indicates that KOEL is expanding demand for its engine and power-generation offerings while converting scale into higher earnings. Continued growth across several years can strengthen market presence, support reinvestment, and provide a durable base for future operating performance.
Negative Factors
Elevated leverageLeverage remains a material constraint despite recent improvement. A debt-to-equity ratio above 1.0 can reduce financial flexibility, increase sensitivity to weaker operating conditions, and limit the funds available for investment or shareholder returns if earnings or cash generation deteriorate.

Kirloskar Oil Engines Limited (KIRLOSENG) vs. iShares MSCI India ETF (INDA)

-25%0%25%50%75%100%125%150%175%IN:KIRLOSENG+70.60%INDA-10.31%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
INR 250.78B
Dividend Yield
0.52%
Average Volume (3M)
41.06K
Price to Earnings (P/E)
45.9
Beta (1Y)
1.33
Revenue Growth
22.66%
EPS Growth
15.61%
Country
India
Employees
2,380
Sector
General
Sector Strength
55
Industry
Industrial - Machinery

Kirloskar Oil Engines Limited Business Overview & Revenue Model

Company Description

Kirloskar Oil Engines Limited operates as a global manufacturer and distributor of various power generation and mechanical solutions. Its extensive product range includes diesel and petrol engines, agricultural and electric pump sets, power tillers,...

How the Company Makes Money

KOEL primarily makes money by manufacturing and selling engines and power-generation equipment, and by supporting the installed base through aftermarket services and spares. 1) Sale of engines and generator sets (equipment revenue): A major revenue s...

Kirloskar Oil Engines Limited Financial Statement Overview

Summary

Strong multi-year revenue and earnings growth with solid 2026 profitability (EBIT margin ~16%), but financial quality is held back by elevated leverage (debt-to-equity ~1.48 in 2026) and a historically weak cash-flow record (negative operating cash flow in 2021–2025). The 2026 return to positive operating and free cash flow is a meaningful improvement but needs to prove sustainable.

Income Statement

78Positive

Balance Sheet

57Neutral

Cash Flow

44Neutral
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue79.37B77.01B62.95B58.41B49.68B39.79B
Gross Profit29.01B24.93B22.55B19.25B14.82B10.24B
EBITDA13.92B14.53B12.33B10.19B7.45B4.25B
Net Income5.46B5.74B4.89B4.42B3.32B1.75B
Balance Sheet
Total Assets0108.52B104.80B82.78B67.25B50.30B
Cash, Cash Equivalents and Short-Term Investments15.69B15.76B15.07B9.46B8.41B8.18B
Total Debt053.74B58.19B41.42B32.44B19.65B
Total Liabilities-35.75B72.77B74.24B56.18B44.21B29.49B
Stockholders Equity35.75B36.20B30.86B26.76B23.04B20.82B
Cash Flow
Free Cash Flow1.96B6.09B-10.47B-8.64B-10.82B-11.66B
Operating Cash Flow3.48B9.49B-7.39B-4.69B-9.20B-10.41B
Investing Cash Flow879.20M-3.57B-5.23B-1.09B-1.44B-29.30M
Financing Cash Flow-3.70B-5.70B15.09B8.00B11.82B9.50B

Kirloskar Oil Engines Limited Technical Analysis

Technical Analysis SentimentNegative
Last Price1725.40

Price Trends

50DMA2108.88Negative
100DMA2154.52Negative
200DMA1808.51Negative

Market Momentum

MACD-91.51Positive
RSI33.25Neutral
STOCH32.51Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:KIRLOSENG, the sentiment is Negative. The current price of 1725.40 is below the 20-day moving average (MA) of 2040.86, below the 50-day MA of 2108.88, and below the 200-day MA of 1808.51, indicating a bearish trend. The MACD of -91.51 indicates Positive momentum. The RSI at 33.25 is Neutral, neither overbought nor oversold. The STOCH value of 32.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:KIRLOSENG.

Kirloskar Oil Engines Limited Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

IN:KIRLOSENG against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
IN:KIRLOSBROSIN:KIRLOSBROS76OutperformINR 127.28B37.85―0.39%10.85%-4.06%
IN:CUMMINSINDIN:CUMMINSIND71OutperformINR 1.23T53.09―1.45%15.30%10.55%
IN:KIRLPNUIN:KIRLPNU66NeutralINR 69.94B28.04―1.07%9.10%38.69%
IN:KIRLOSENGIN:KIRLOSENG60NeutralINR 261.95B45.92―0.52%22.66%15.61%
IN:GREAVESCOTIN:GREAVESCOT57NeutralINR 46.45B47.97―0.97%28.44%-24.44%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
IN:HONDAPOWERIN:HONDAPOWER53NeutralINR 17.76B27.37―2.69%11.78%-10.11%

* General Sector Average

Performance Comparison

0%50%100%150%IN:KIRLOSENGIN:CUMMINSINDIN:GREAVESCOTIN:HONDAPOWERIN:KIRLOSBROSIN:KIRLPNUDec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
IN:KIRLOSENG and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
IN:KIRLOSENGKirloskar Oil Engines Limited1724.70713.7270.60%
IN:CUMMINSINDCummins India Limited4540.00277.686.51%
IN:GREAVESCOTGreaves Cotton Limited206.35-13.00-5.93%
IN:HONDAPOWERHonda India Power Products Limited1779.05-778.34-30.44%
IN:KIRLOSBROSKirloskar Brothers Ltd.1787.50-66.44-3.58%
IN:KIRLPNUKirloskar Pneumatic Co. Ltd.559.5013.192.41%

Kirloskar Oil Engines Limited Corporate Events

Kirloskar Oil Engines Announces Trading Window Closure Ahead of Half-Year Results

Sep 28, 2026

Kirloskar Oil Engines Limited has announced that its trading window for dealing in the company’s securities will be closed from 1 October 2026 until 48 hours after the declaration of its financial results for the quarter and half year ending 30...

Kirloskar Oil Engines Allots 46,370 Shares Under 2019 ESOP, Marginally Expands Equity Base

Sep 28, 2026

Kirloskar Oil Engines Limited has allotted 46,370 fully paid-up equity shares of Rs. 2 each following the exercise of employee stock options under its 2019 ESOP scheme. This allotment, approved by the Stakeholders Relationship Committee on 28 Septemb...

Kirloskar Oil Engines’ ESOP Expansion Plan Rejected by Shareholders

Sep 22, 2026

Kirloskar Oil Engines Limited has informed the stock exchanges that the postal ballot on a special resolution to increase the employee stock option grant pool and amend its KOEL ESOP 2019 plan did not receive the requisite shareholder majority. The c...

Kirloskar Oil Engines Launches Postal Ballot, Remote E-Voting on ESOP Resolution

Aug 22, 2026

Kirloskar Oil Engines has notified stock exchanges that it has published newspaper notices regarding a postal ballot and remote e-voting process for shareholders. The communication, carried in Financial Express and Loksatta, fulfills regulatory discl...

Kirloskar Oil Engines Schedules Virtual Meeting With Global Investors

Aug 21, 2026

Kirloskar Oil Engines Limited has scheduled a virtual group meeting on 26 August 2026 with key institutional investors and advisors, including Capital International, Balyasny Asset Management, and Strategic Growth Advisors. The interaction aims to en...

Kirloskar Oil Engines Posts Q1 FY27 Earnings Call Transcript for Investors

Aug 13, 2026

Kirloskar Oil Engines Limited has announced that it has uploaded the transcript of its Q1 FY27 earnings conference call for investors and analysts on its website. The call, held on 7 August 2026, covered the company’s unaudited financial result...

Kirloskar Oil Engines Shareholders Clear All Resolutions at 17th AGM

Aug 8, 2026

Kirloskar Oil Engines Limited informed the stock exchanges that the voting results and scrutinizer’s report for its 17th Annual General Meeting, held on August 7, 2026, have been submitted in compliance with SEBI’s listing regulations and...

Kirloskar Oil Engines Reappoints Independent Director for Second Five-Year Term

Aug 8, 2026

Kirloskar Oil Engines Limited has announced that its shareholders approved the re-appointment of Mr. Yogesh Kapur as an Independent Director at the company’s Annual General Meeting held on August 7, 2026. He will serve a second consecutive five...

Kirloskar Oil Engines Opens SEBI-Mandated Window for Legacy Share Transfers

Aug 5, 2026

Kirloskar Oil Engines Limited has notified exchanges and shareholders about newspaper publications detailing a Special Window for the transfer and dematerialisation of physical securities sold or purchased before April 1, 2019. The initiative, mandat...

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Sep 30, 2026