Slides
Page 1
Earnings Call Presentation Q3 FY26 12th February 2026
Page 2
DISCLAIMER & SAFE HARBOR STATEMENT Statements in this presentation, particularly those which relate to management’s views and analysis, describing the Company’s objectives, projections, estimates and expectations may constitute “forward looking statements” within the meaning of applicable laws and regulations. Actual results might differ materially from those either expressed or implied. Actual results may differ materially from those anticipated in the forward-looking statements. The company assumes no obligation to update forward looking statements to reflect actual results, changed assumptions or other factors. The presentation has been prepared by the Company based on the information and data which the Company considers reliable, but the Company makes no representation or warranty, expressed or implied, whatsoever, and no reliance shall be placed on the truth, accuracy, completeness, fairness, and reasonableness of the contents of this presentation. This presentation may not be all inclusive and may not contain all the information that you may consider material. Any liability in respect of the contents of, or any omission from, this presentation is expressly excluded. This presentation has been prepared solely for information purposes and do not constitute any offer, recommendation, or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract binding commitment whatsoever. No offering of the securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company. 2 All amounts in ₹ Crore All numbers are rounded off to the nearest unit
Page 3
KOEL Fluid Dynamics (P) Limited (“KFD”)1 (100%) Kirloskar Americas Corporation2 (100%) Engines LPG, LLC dba Wildcat Power Gen6 (51%) Kirloskar International ME FZE (100%)7 Arka Financial Holdings (P) Ltd4 (100%) Arka Fincap Ltd3 (99.998%) Arka Investment Advisory Services (P) Ltd5 (100%) KOEL GROUP 3 KOEL- Earnings Call – Q3 FY26 – KOEL Group 1 76% with effect from 1st August 2017 and 100% with effect from 26th September 2022. Includes share of profit of ESVA Pumps India (P) Ltd (49% JV) upto 28th September 2024. Name change with effect from 8th January 2026 (Formerly known as La-Gajjar Machineries Private Limited) 2 with effect from 1st July 2015. 3 with effect from 20th April 2018. 4 with effect from 13th July 2021. 5 with effect from 30th March 2022. 6 with effect from 29th November 2023. 7 with effect from 7th January 2025.
Page 4
CONTENT ▪ BUSINESS OVERVIEW ▪ STANDALONE ▪ SALES HIGHLIGHTS ▪ CONSOLIDATED ▪ SEGMENT OVERVIEW ▪ FINANCIAL OVERVIEW 4
Page 5
Products to Business Segments… Product Lines Business Segments Power Gen Industrial Distribution and Aftermarket Fluid Dynamics Business (Water Management Solutions) Arka Group B2B Business (Standalone) 5 Engines and Gensets Industrial Engines Power Solutions for Large / Institutional Project Clients (Marine, Defence etc) After Sales Support Retail Channel – Tractor spares, Oil, Batteries Engine based Pump Sets Electric Pumps Financial Services KOEL- Earnings Call – Q3 FY26 – Business Overview International Business B2C Business (KFD)
Page 6
STANDALONE SALES HIGHLIGHTS – Q3 FY26 YoY 6 KOEL- Earnings Call – Q3 FY26 – Standalone Business Overview 1,015 1,371 Q3 FY25 Q3 FY26 Total Sales 418 603 Q3 FY25 Q3 FY26 Power Gen 112 140 Q3 FY25 Q3 FY26 International B2B 277 390 Q3 FY25 Q3 FY26 Industrial 208 238 Q3 FY25 Q3 FY26 Distribution & After Market 35% 44% 41% 14% 26% 903, 89% 1,243, 91% 112, 11% 128, 9% Q3 FY25 Q3 FY26 Exports Domestic 1,371 1,015 54 60 43 53 15 15 Q3 FY25 Q3 FY26 Distribution & After Market Industrial Power Gen 112 128 - Industrial business includes numbers of FMS business, reorganized w.e.f 1 April 2025 and the comparative numbers are also regrouped accordingly. - w.e.f. 11th October 2025, standalone B2C business is transferred to KFD (wholly owned subsidiary) and as the B2C operations are presented under discontinued operations in standalone, the comparative numbers are regrouped accordingly. Power Gen 44% Industrial 29% Distribution & After Market 17% International 10%
Page 7
140 200 158 166 40 43 YTD FY25 YTD FY26 Distribution & After Market Industrial Power Gen STANDALONE SALES HIGHLIGHTS – YTD FY26 YoY 7 KOEL- Earnings Call – Q3 FY26 – Standalone Business Overview 3,257 4,082 YTD FY25 YTD FY26 Total Sales 1,426 1,890 YTD FY25 YTD FY26 Power Gen 341 431 YTD FY25 YTD FY26 International B2B 882 1,074 YTD FY25 YTD FY26 Industrial 608 687 YTD FY25 YTD FY26 Distribution & After Market 25% 33% 22% 13% 26% 338 409 2,919, 90% 3,673, 90% 338, 10% 409, 10% YTD FY25 YTD FY26 Exports Domestic 4,082 3,257 Power Gen 46% Industrial 26% Distribution & After Market 17% International 11% - Industrial business includes numbers of FMS business, reorganized w.e.f 1 April 2025 and the comparative numbers are also regrouped accordingly. - w.e.f. 11th October 2025, standalone B2C business is transferred to KFD (wholly owned subsidiary) and as the B2C operations are presented under discontinued operations in standalone, the comparative numbers are regrouped accordingly.
Page 8
CONSOLIDATED SEGMENT PERFORMANCE OVERVIEW – B2B 8 Performance Updates Segment Revenue Composition For Current Quarter Segment Revenue Trend* KOEL- Earnings Call – Q3 FY26 – Consolidated Business Overview Power Gen 44% Industrial 28% Exports 11% Distribution & After Market 17% 909 1,088 1,151 1,292 1,249 118 153 125 165 147 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26 Domestic Export All amounts are in “₹ Crore” 1,027 1,241 1,276 1,457 1,396 - Reported numbers includes numbers of FMS business, reorganized w.e.f 1 April 2025. The comparative numbers are also regrouped accordingly. ▪ Q3 FY26 recorded the highest ever 3rd quarter sales ▪ Highest ever quarterly sales in Industrial (driven by Defence, Marine & Railway) & Distribution and Aftermarket in Q3 FY26 ▪ The domestic Power Generation business growth was largely driven by the LHP (Low Horsepower) segment, supported by incentive schemes. The HHP (High Horsepower) segment also delivered strong performance, registering 235% growth over the previous year. ▪ The domestic Industrial business recorded strong growth of 41% year-on-year, led by robust execution in the Defence, Marine segments, while the Construction & Mining segment remained relatively subdued ▪ Distribution business delivered Q3 sales of ₹238 Cr, marking a 14% year-on-year growth and recording its highest-ever quarterly performance for the Distribution & Aftermarket business unit
Page 9
176 233 225 185 176 35 72 67 73 73 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26 Domestic Export 211 CONSOLIDATED SEGMENT PERFORMANCE OVERVIEW – B2C 9 Performance Updates Segment Revenue Composition For Current Quarter Segment Revenue Trend* KOEL- Earnings Call – Q3 FY26 – Consolidated Business Overview All amounts are in “₹ Crore” WMS 70% Exports 30% 305 258292 249 - Numbers are for continuing operations only, as reported in unaudited results and after considering the reorganization of FMS business from B2C to B2B. The previous periods have been regrouped to make them comparable with those of the current periods. - w.e.f. 11th October 2025, standalone B2C business is transferred to KFD (wholly owned subsidiary) , as this is within group transaction there is no impact on the consolidated B2C results.. ▪ Top line growth of 18% year on year ▪ Strategic restructuring of B2C operations came into effect from October 11th; business transferred to wholly owned subsidiary KOEL Fluid Dynamics Private Limited (formerly known as “La-Gajjar Machineries Private Limited”) through a slump sale. ▪ Export business gained strong traction, nearly doubling year-on- year
Page 10
CONSOLIDATED SEGMENT PERFORMANCE OVERVIEW – FINANCIAL SERVICES 10 Performance UpdatesSegment Revenue Trend KOEL- Earnings Call – Q3FY26 – Consolidated Business Overview *Excludes treasury assets and includes off balance sheet loan book of AFL # Includes profit of 53 crores on holding structure change. 1 Loan Book denotes On Balance Sheet Loan Book of AFL. - Figures for the previous period have been regrouped and / or reclassified wherever considered necessary to conform to current period presentation All amounts are in “₹ Crore” ▪ KOEL’s total investment in AFHPL as on 31st December 2025 stood at 1,053 crores# ▪ AFHPL Consolidated revenue from operations stood at 227 crores in Q3 FY26; a growth of 7% YoY ▪ AFHPL Consolidated PATfor Q3 FY26 stood at 11.2 crores ▪ Total Debt as on 31st December 2025 stood at 5,043 crores; Treasury Assets stood at 874 crores. ▪ Debt to Equity Ratio: • 31st December 25 - 3.8 • 30th September 25 - 4.0 • 30th June 25 - 4.2 • 31st March 25 - 4.4 • 31st December 24 - 4.0 ▪ Total AUM* as on 31st December 2025 at 7,679 crores ▪ Drive to grow Secured granular retail business continues. Loan Book1 Trend AUM* Trend 5,824 6,107 6,000 5,831 5,643 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26 6,740 7,255 7,231 7,558 7,679 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26 212 204 194 235 227 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26
Page 11
CONTENT ▪ BUSINESS OVERVIEW ▪ FINANCIAL OVERVIEW ▪ STANDALONE ▪ PERFORMANCE HIGHLIGHTS ▪ PROFIT AND LOSS STATEMENT ▪ WORKING CAPITAL AND NET CASH POSITION ▪ CONSOLIDATED ▪ PERFORMANCE HIGHLIGHTS ▪ PROFIT AND LOSS STATEMENT ▪ SEGMENT RESULTS 11
Page 12
401 544 12.2% 13.2% YTD FY25 YTD FY26 1,015 1,449 1,371 Q3 FY25 Q2 FY26 Q3 FY26 STANDALONE^ – PERFORMANCE HIGHLIGHTS Quarterly Sales EBITDA* & Margin* PAT* & Margin* -5% -23% 59% 80% KOEL- Earnings Call – Q3 FY26 – Standalone Financial Overview All amounts are in “₹ Crore” 35% 251 345 7.7% 8.4% YTD FY25 YTD FY26 EBITDA* & Margin* PAT* & Margin* 3,256 4,082 YTD FY25 YTD FY26 YTD Dec Sales 25% -17% 36% 37% Sales 12 * Numbers reported above are from continuing operations only and are excluding exceptional items, wherever applicable. PAT, EBITDA and Margins for the previous period are excluding reversal of provision for overdue receivables made for a customer towards sales made in earlier years. EBITDA Margin, at standalone level, including reversal for overdue receivable provision for previous year YTD period was 13.5%. In the current periods and previous year quarter there is no such reversal. For details, please refer ‘Note to the unaudited financial results’ published on the stock exchanges. ^ w.e.f. 11th October 2025, standalone B2C business is transferred to KFD (wholly owned subsidiary) and as the B2C operations are presentedunder discontinued operations in standalone, the comparative numbers are regrouped accordingly. 106 204 169 10.3% 14.0% 12.2% Q3 FY25 Q2 FY26 Q3 FY26 57 133 102 5.5% 9.1% 7.4% Q3 FY25 Q2 FY26 Q3 FY26
Page 13
STANDALONE - PROFIT AND LOSS STATEMENT 13 KOEL- Earnings Call – Q3 FY26 – Standalone Financial Overview All amounts are in “₹ Crore” #Numbers for the previous YTD period are including reversal of provision for overdue receivables made for a customer towards sales made in earlier years. EBITDA Margin, at standalone level, for the previous YTD period excluding reversal for overdue receivable provision was 12.2%. In the current periods and previous year quarter there is no such reversal. - w.e.f. 11th October 2025, standalone B2C business is transferred to KFD (wholly owned subsidiary) and as the B2C operations are presented under discontinued operations in standalone, the comparative numbers are regrouped accordingly. Particulars Q3 FY26 Q2 FY26 Q-o-Q Q3 FY25 Y-o-Y YTD FY26 YTD FY25 Y-o-Y2 Net Sales 1,370.8 1,449.3 -5% 1,014.8 35% 4,082.2 3,256.3 25% Other Operating Income 9.8 10.2 -4% 9.5 3% 30.0 28.2 6% Revenue From Operations 1,380.6 1,459.5 -5% 1,024.3 35% 4,112.1 3,284.5 25% Raw Material 898.4 943.2 -5% 662.6 36% 2,668.3 2,109.3 27% Employee Costs 96.6 89.5 8% 77.5 25% 265.9 239.4 11% Other Expenses 216.9 222.8 -3% 178.3 22% 633.4 493.8 28% EBITDA # 168.8 204.0 -17% 105.9 59% 544.4 442.0 23% EBITDA# Margin % 12.2% 14.0% -13% 10.3% 18% 13.2% 13.5% -2% Other Income 8.0 11.6 -31% 5.9 37% 31.8 25.8 23% Depreciation 36.1 34.8 4% 31.3 15% 104.1 81.0 29% Interest 2.2 2.8 -21% 2.9 -25% 8.0 7.9 1% PBT Before Exceptional Items 138.5 178.0 -22% 77.6 79% 464.1 379.0 22% Exceptional Items - (Expenses) / Income (20.1) - 100% - 100% (20.1) - 100% PBT From Continuing Operations 118.4 178.0 -33% 77.6 53% 444.0 379.0 17% Tax 31.1 44.5 -30% 20.9 49% 113.6 96.8 17% PAT From Continuing Operations (A) 87.4 133.5 -35% 56.7 54% 330.4 282.2 17% PAT Margin From Continuing Operations (%) 6.3% 9.1% -31% 5.5% 14% 8.0% 8.6% -6% PAT From Discontinued Operations (B) (1.1) 7.3 -114% 8.3 -113% 19.5 28.6 -32% PAT From Continuing and Discontinued Operations (A+B) 86.3 140.8 -39% 65.0 33% 349.9 310.8 13%
Page 14
565 595 610 704 776 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26 Receivables 489 574 796 845 696 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26 Payables 654 459 562 675 669 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26 Inventories STANDALONEWORKING CAPITAL AND NET CASH POSITION 14 Notes : 1) No. of days has been calculated using average value and TTM (Trailing Three Months method). 2)*Net of debt; includes treasury investments and excludes unclaimed dividends. 3) Above numbers are excluding standalone B2C business transferred to KFD (wholly owned subsidiary company). KOEL- Earnings Call – Q3 FY26 – Standalone Financial Overview 40 Days45 Days 41 Days 72 Days68 Days 68 Days 80 Days 51 Days 56 Days 42 Days 78 Days 159 448 639 475 348 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26 Net Cash* Position All amounts are in “₹ Crore” 64 Days 66 Days 44 Days 59 Days
Page 15
4,541 5,543 YTD FY25 YTD FY26 67 159 126 4.6% 8.2% 6.7% Q3 FY25 Q2 FY26 Q3 FY26 1,436 1,935 1,859 Q3 FY25 Q2 FY26 Q3 FY26 CONSOLIDATED^ – PERFORMANCE HIGHLIGHTS Quarterly Sales PAT* & Margin* 89% KOEL- Earnings Call – Q2 FY26 – Consolidated Financial Overview All amounts are in “₹ Crore” 29% 305 420 7.5% 6.7% YTD FY25 YTD FY26 PAT* & Margin* 38% YTD Dec Sales 22% -4% -21% 15 ^ Numbers reported are for continuing operations only and excluding exceptional items, wherever applicable. * Numbers for the previous YTD period are excluding reversal of provision for overdue receivables made for a customer towards sales made in earlier years. Net Profit for the previous YTDperiod including reversal for overdue receivable provision was ₹ 336 Cr. In the current period and previous year quarter there are no such exceptional items and reversals. Please refer ‘Note to the unaudited financial results’ published on the stock exchanges. - w.e.f. 11th October 2025, standalone B2C business is transferred to KFD (wholly owned subsidiary), as this is within group transaction there is no impact on the consolidated results.
Page 16
CONSOLIDATED - PROFIT AND LOSS STATEMENT 16 KOEL- Earnings Call – Q3 FY26 – Consolidated Financial Overview All amounts are in “₹ Crore” *Net Sales includes revenue from financial services business. # Numbers for the previous period are including exceptional items and reversal of provision for overdue receivables made for a customer towards sales made in earlier years. Net Profit for the previous YTD period excluding exceptional items and excluding reversal for overdue receivable provision was ₹ 305 Cr. In the current period and previous year quarter there are no such exceptional items and reversals. - w.e.f. 11th October 2025, standalone B2C business is transferred to KFD (wholly owned subsidiary) , as this within group transaction there is no impact on the consolidated results. - The previous periods have been regrouped to make them comparable with those of the current periods. Particulars Q3 FY26 Q2 FY26 Q-o-Q Q3 FY25 Y-o-Y YTD FY 26 YTD FY 25 Y-o-Y Net Sales* 1,859.0 1,935.1 -4% 1,435.9 29% 5,542.9 4,541.2 22% Other Operating Income 13.6 15.3 -11% 13.4 2% 41.9 38.6 8% Revenue From Operations 1,872.6 1,950.4 -4% 1,449.3 29% 5,584.8 4,579.8 22% Other Income 10.0 12.6 -21% 10.6 -6% 57.2 31.5 82% Total Income 1,882.6 1,962.9 -4% 1,459.9 29% 5,642.0 4,611.3 22% Raw Material 1,068.0 1,110.6 -4% 802.6 33% 3,197.5 2,570.0 24% Employee Costs 161.7 151.1 7% 133.1 21% 449.9 394.1 14% Other Expenses 311.4 307.0 1% 261.1 19% 897.5 741.4 21% Depreciation 43.2 42.0 3% 37.2 16% 124.9 100.2 25% Finance Cost 127.5 136.0 -6% 133.2 -4% 402.9 351.8 15% Share of net profit/(loss) of joint venture accounted for using the equity method (net of tax) - - - - - - 0.7 -100% PBT Before Exceptional Items From Continuing Operations 170.7 216.3 -21% 92.8 84% 569.3 454.6 25% Exceptional Items - (Expenses) / Income (23.0) - 100% - - (23.0) 15.3 -250% PBT From Continuing Operations 147.7 216.3 -32% 92.8 59% 546.3 469.9 16% Tax 38.5 57.1 -33% 26.2 47% 143.8 122.5 17% PAT # From Continuing Operations (A) 109.1 159.2 -31% 66.6 64% 402.5 347.4 16% PAT Margin From Continuing Operations (%) 5.8% 8.2% -29% 4.6% 27% 7.2% 8% -5% PAT From Discontinued Operations (B) - - - 1.3 -100% 4.7 1.8 158% PAT # From Continuing and Discontinued Operations (A+B) 109.1 159.2 -31% 67.9 61% 407.2 349.3 17%
Page 17
SEGMENT RESULTS - CONSOLIDATED 17 KOEL- Earnings Call – Q3 FY26 – Consolidated Financial Overview All amounts are in “₹ Crore” - Numbers reported are for continuing operations only, as reported in unaudited results and after considering the reorganisation of FMS business from B2C to B2B. The previous periods have been regrouped to make them comparable with those of the current periods. # Profit/(Loss) before exceptional items, tax and interest from each segment. ##Profit/(Loss) before exceptional items, tax and after interest. *Other than the interest pertaining to the "Financial Services" segment. ^^ Segment results for B2B excluding reversal for overdue receivable provision for YTD FY 25 was ₹ 309 Crore (42% Y-o-Y growth). In the current periods there are no such reversals. For details, please refer ‘Note to the unaudited financial results’ published on the stock exchanges. - w.e.f. 11th October 2025, standalone B2C business is transferred to KFD (wholly owned subsidiary) , as this is within group transaction there is no impact on the consolidated results. Particulars Q3FY26 Q2FY26 QoQ Q3FY25 YoY YTD FY26 YTD FY25 YoY Segment Revenue B2B 1,396.2 1,456.6 -4% 1,027.1 36% 4,129.1 3,289.3 26% B2C 249.4 258.4 -3% 210.6 18% 799.6 714.0 12% Financial Services 227.1 235.3 -4% 211.6 7% 656.1 576.5 14% Revenue From Operations 1,872.6 1,950.4 -4% 1,449.3 29% 5,584.8 4,579.8 22% Segment Results# B2B^^ 137.2 163.2 -16% 72.1 90% 439.7 350.1 26% B2C 18.3 18.2 0% (3.9) 568% 64.1 29.0 121% Financial Services## 17.1 33.5 -49% 28.6 -40% 64.3 78.3 -18% Unallocated 2.9 6.8 -58% 1.7 67% 17.1 12.5 37% Total 175.4 221.7 -21% 98.5 78% 585.2 469.9 25% Less: Finance Costs* 4.7 5.4 -13% 5.7 -17% 15.9 15.3 4% Exceptional items**- (income)/expense 23.0 - 100% - 100% 23.0 (15.3) 250% Profit Before Tax From Continuing Operations (A) 147.7 216.3 -32% 92.8 59% 546.3 469.9 16% Profit Before Tax From Discontinued Operations (B) - - - 1.9 -100% 4.5 2.5 85% Profit Before Tax For The Period (A+B) 147.7 216.3 -32% 94.6 56% 550.8 472.4 17%
Page 18
18 KOEL Company Secretary Group Investor Relations Ms. Farah Irani Tel: +91 7757874812 Email: farah.irani@kirloskar.com Ms. Mayura Bhusari Tel: (020) 69065009 Email: mayura.bhusari@kirloskar.com For Further Information Please Contact: