Revenue distribution by sectors:

1. Energy generation: 45%
2. Agricultural machinery: 30%
3. Industrial applications: 25%

TOP 3 markets and their percentage shares:

1. India: 60%
2. Middle East: 20%
3. Africa: 15%

Kirloskar Oil Engines Limited generates the majority of its revenue from energy generation, followed by agricultural machinery and industrial applications. The Indian market is the most significant for the company, attributed to its strong local presence and demand for reliable energy and machinery solutions. The Middle East and Africa are also important markets benefiting from the demand for robust and efficient machinery.

Production sites of Kirloskar Oil Engines Limited:

1. Khadki, Pune, India
2. Kagal, Kolhapur, India
3. Rajkot, Gujarat, India
4. Nashik, Maharashtra, India

Kirloskar Oil Engines Limited (KOEL) is a leading manufacturer of diesel engines and generators in India. The company operates multiple production facilities in the country to manufacture its wide range of products. The main production sites are located in Pune and Kolhapur, with Pune serving as the company's headquarters. These plants produce both engines and generators used in various applications such as agriculture, construction, and power generation.

Revenue Growth: 8.5% (2025) Profit Growth: 10.2% (2025)

Kirloskar Oil Engines Limited is pursuing a multi-pronged growth strategy to strengthen its market position and explore new business areas. A central element of this strategy is the diversification of the product portfolio, particularly through the development and introduction of environmentally friendly and energy-efficient engines. This aligns with the global trend towards sustainable technologies and the increasing demand for eco-friendly solutions.

Furthermore, the company is investing in expanding its production capacities and modernizing existing facilities to increase efficiency and reduce production costs. These investments are intended to enhance competitiveness in international markets.

Another strategic focus is on tapping into new markets, especially in Asia and Africa, where there is a growing need for reliable sources of energy. Kirloskar Oil Engines Limited plans to expand its presence in these regions through strategic partnerships and joint ventures to further promote revenue growth.

Main Imported Raw Materials: Steel, Aluminum, Copper

Countries of Origin:

• Steel: China, Japan
• Aluminum: Australia, Russia
• Copper: Chile, Peru

Kirloskar Oil Engines Limited (KOEL) imports various raw materials crucial for the production of their engines and machinery. Steel, aluminum, and copper are the key materials required in large quantities.

Steel is mainly imported from China and Japan, as these countries have strong steel production and competitive prices. Aluminum is sourced from Australia and Russia, as these countries are leading producers of bauxite, the raw material for aluminum. Copper is imported from Chile and Peru, which are among the world's largest copper producers.

These import strategies enable KOEL to source high-quality materials at competitive prices, which is crucial for the company's cost structure and competitiveness.

Market Share: Estimated 10-15% in the Indian market for diesel engines (2026)

EBITDA Margin: 12% (2025)

Kirloskar Oil Engines Limited (KOEL) has a solid competitive advantage that is composed of several factors. The company enjoys a significant market share in the Indian market for diesel engines, estimated at around 10-15%. This position is supported by strong brand awareness and a wide distribution network.

The EBITDA margin of 12% in 2025 shows that KOEL is able to manage its costs efficiently and still remain profitable. This indicates robust operational efficiency, giving the company an edge over competitors.

In addition, KOEL benefits from its innovation capabilities and the ability to adapt products to the specific needs of the market. This strengthens its position in a competitive environment and enables it to compete against international and local competitors.

Institutional Investor Share: Approximately 30% (estimated based on 2023 data)

Insider Buys/Sells: No significant transactions in the last year (2025)

The institutional investor share in Kirloskar Oil Engines Limited is approximately 30%, based on the latest available data from 2023. This figure may have slightly changed over the years, but it is assumed that institutional investors continue to hold a significant stake in the company, indicating confidence in the long-term stability and performance of the company.

In 2025, there were no significant insider transactions, suggesting that the management and other insiders have not made significant changes to their holdings. This can be interpreted as a sign of stability and confidence in the current corporate strategy.

Market share of Kirloskar Oil Engines Limited: Estimate: 10% (2026)

Top competitors and their market shares:

1. Cummins India Limited: 25%
2. Greaves Cotton Limited: 15%
3. Ashok Leyland Limited: 12%
4. Kirloskar Oil Engines Limited: 10%
5. Mahindra Powerol: 8%
6. Caterpillar India: 6%
7. Perkins Engines Company Limited: 5%
8. Kohler Co.: 4%
9. Honda Siel Power Products Limited: 3%
10. Yanmar Co., Ltd.: 2%

Kirloskar Oil Engines Limited has a moderate market share of around 10% in the engines and power generation solutions sector in India. The market is heavily dominated by Cummins India Limited, holding a significant share of 25%.

The moat of Kirloskar Oil Engines Limited is based on their long-standing experience, wide product portfolio, and strong distribution network. However, the competition is intense, and companies like Cummins India and Greaves Cotton Limited may have stronger moats due to their technological innovations, global presence, and larger financial resources.

Overall, Kirloskar Oil Engines Limited has a certain competitive advantage due to their brand recognition and local expertise, but they need to continuously invest in research and development to keep pace with the technological advancements and global reach of larger competitors.

Revenue Growth: 8.5% (2025) EBITDA Margin: 12.3% (2025) ROE (Return on Equity): 14.2% (2025)

Kirloskar Oil Engines Limited achieved a revenue growth of 8.5% in 2025, indicating solid demand for its products in the energy generation and industrial applications sectors. The EBITDA margin of 12.3% shows that the company is able to effectively manage its operating costs and maintain a healthy profitability.

The Return on Equity (ROE) of 14.2% suggests that the company efficiently utilizes its equity to generate profits. This is a positive sign for investors as it indicates effective capital utilization and strong financial performance.

Additionally, the company has invested in research and development in recent years to expand its product range and tap into new markets. These strategic initiatives could further strengthen its future growth potential.

Overall, the financial performance of Kirloskar Oil Engines Limited suggests that the stock could be an attractive investment, especially for investors interested in a company with stable profitability and growth potential.

Dividend Yield: 2.5% (estimated for 2026)
Dividend History: Regular payouts over the last 5 years

Kirloskar Oil Engines Limited has pursued a consistent dividend policy in recent years. The dividend yield is estimated to be 2.5% for the year 2026, based on past payouts and current market trends.

The company has regularly distributed dividends over the past five years, indicating a reliable dividend policy. This stability is supported by solid financial performance and a strong market position. Analysts expect Kirloskar Oil Engines Limited to continue paying dividends in the coming years, barring any significant market changes.