Kirloskar Oil Engines Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Kirloskar Oil Engines Ltd trades at ₹2,100, in a confirmed uptrend and 48 weeks into that stage. That is +26.0% against its own 200-day average. It sits at 72% of a 52-week range of ₹890 to ₹2,564. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 48 straight weeks.

Today the stock is in a confirmed uptrend — week 48 of stage 2, confirmed. At ₹2,100 it trades +26.0% versus its 200-day average and sits at 72% of its 52-week range (₹890–₹2,564).

Against the market, two honest reads. Cumulative: over the last 10.5 years the stock moved +900% while the NIFTY 500 moved +284% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 48 straight weeks — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Kirloskar Oil Engines Ltd trades at 53.6× P/E, about the priciest it has ever traded. Its long-run median P/E is 24.6×, measured across 10.5 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 53.6× is about the priciest it has ever traded, against a long-run median of 24.6× measured over 10.5 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

🚨 Why the multiple sits where it does: over the past year annual EPS moved +17.3% against a +132.7% price move — the price outran earnings, pushing the multiple UP its own range.

The price move, decomposed: over 5y, of the +55.6%/yr price move, ~+18.7%/yr came from earnings growth and ~+36.9 pp from the multiple (expanding); over 10y, of the +22.0%/yr price move, ~+15.3%/yr came from earnings growth and ~+6.7 pp from the multiple (expanding). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

Put together: the multiple is full against its own past, so the story rests on the earnings line underneath it, not the multiple.

What the price assumes This reading works the multiple backwards. It asks one question: what yearly rate of profit growth is a buyer at the market price already paying for? The number is the growth rate that makes eleven years of profit — six years growing, then five fading — add up to that day's market price, once each year is discounted at 11% a year.

At its price on 13 June 2026, Kirloskar Oil Engines Ltd was priced for profit growth of about 26.9% a year. Profit itself has compounded 13.0% a year over the past 10 years. The market pays that at 53.6× P/E, the 98th percentile of its own 11-year range.

What the two numbers say together. The multiple is full against its own past, and the growth the price is paying for is far above what this company has actually delivered. Both readings sit on the same earnings, so they are one reading rather than two.

How to hold this number: it is a reading of one day's price, taken on 13 June 2026, not a running figure. A higher price is paying for more growth and a lower price for less, so it moves whenever the price does, and this page does not restate it between measurements. Every other number on this page is read off the live quote.

Stage: Turning around Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Kirloskar Oil Engines Ltd reads as turning around on its fundamental arc. Turning around — profit growth swung from −2.3% at the trough to +16.3% off a 3-quarter-old trough, ROCE holding at 18.4%. The read is built from 12 quarters across 4 curves, on full evidence.

Why it matters: growth inflections are where re-ratings start — the curves say a turn is forming, so the question becomes whether the next quarters confirm it.

4-Factor Sector Score

53.6/100 — rank 1 of 2 in Gensets · 97% evidence confidence

Kirloskar Oil Engines Ltd scores 53.6 out of 100 against the 2 companies it is compared with in Gensets, ranking 1. Price leads the evidence: RS versus the benchmark is 42.8%, but earnings trajectory is weak. Wait for revenue and profit confirmation.

The four contributions add to the total exactly: 17.2 + 12.3 + 4.6 + 19.5 = 53.6. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Kirloskar Oil Engines Ltd reported ₹2,000 Cr of revenue in the Jun 26 quarter, +13.5% year on year. That is the 12th straight quarter of year-on-year growth. Over 10 years it has compounded at 12.1% a year. The last full year, FY26, came in at ₹7,701 Cr. The last four reported quarters add to ₹7,937 Cr.

FY26 revenue came in at ₹7,701 Cr (+21.7% on the year), capping 10 years at 12.1% compound. The latest quarter (Jun 26) printed ₹2,000 Cr, +13.5% year on year — the 12th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +23.2% growth against the decade's 12.1% — the current year is running faster than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +22.7% over the last 4 quarters against +15.1%/yr over the last 8 — accelerating; TTM profit +16.3% vs +6.6%/yr — accelerating.

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Kirloskar Oil Engines Ltd's operating margin is 15.0% in the Jun 26 quarter, −4.0 percentage points against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 9.0% to 19.0%. The current quarter sits inside that band.

The latest quarter's operating margin is 15.0%, −4.0 pp against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 9.0%–19.0%.

🚨 Why the margin moved: operating margin went −3.5 pp year on year while gross margin went −1.4 pp — the loss came mostly below the gross line: operating leverage, with costs spread over a bigger revenue base.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Kirloskar Oil Engines Ltd earned ₹111 Cr of net profit in the Jun 26 quarter, −20.1% year on year. Full-year FY26 profit was ₹562 Cr. The 10-year compound rate is 13.0%. That is 5.5% of the quarter's revenue. The same quarter a year earlier earned ₹139 Cr.

Jun 26 profit was ₹111 Cr, −20.1% year on year. On the full year, FY26 printed ₹562 Cr (+18.1%), and the 10-year compound rate is 13.0%.

🚨 Why profit moved: revenue contributed +13.5% and the margin −4.0 pp — the quarter was revenue-led despite a thinner margin.

Pace comparison, last four quarters: profit +22.4% vs revenue +23.2%. Profit and revenue are moving roughly in step.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years −19% of Kirloskar Oil Engines Ltd's reported profit arrived as operating cash — a gap worth watching. In FY26 that was ₹932 Cr of operating cash against ₹562 Cr of profit. After ₹369 Cr of capital spending, ₹563 Cr was left as free cash.

FY26: operating cash of ₹932 Cr against reported profit of ₹562 Cr, leaving free cash of ₹563 Cr after ₹369 Cr of capital spending. Across the last 3 fiscal years the conversion rate is −19% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

🚨 Why conversion sits at −19%: the cash cycle stretched 18 days between FY21 and FY26 — more of each rupee of profit waits inside the cycle before arriving. Less than 70% of profit arriving as cash is the thing to watch on this page.

Router verdict: conversion is below par and the cash cycle has stretched 18 days — the next section's job is to find where the cash is stuck.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Kirloskar Oil Engines Ltd's cash conversion cycle runs 28 days in FY26, up from 10 days in FY21. Capital spending ran ₹1,150 Cr over the last 3 years. At FY26 sales of ₹7,701 Cr each day of that cycle holds about ₹21.1 Cr, so roughly ₹591 Cr sits inside the business at any moment.

FY26: debtors at 45 days, inventory at 61 days — roughly 2.0 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 28 days, looser than FY21's 10.

The full loop: cash goes out to suppliers and production on day 0; stock waits 61 days to sell; customers pay about 45 days after that; and suppliers themselves are paid at 78 days — netting out to the 28-day cycle.

In money terms: at FY26 sales of ₹7,701 Cr, each day of the cycle holds about ₹21.1 Cr — so the 28-day loop keeps roughly ₹591 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹1,150 Cr over the last 3 fiscal years against ₹432 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹149 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the working-capital loop is the cash sink the router flagged — watch the cycle, not the P&L.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Kirloskar Oil Engines Ltd earns a ROCE of 15% in FY26. That is up from a trough of 10% in FY18. Return on invested capital clears the cost of that capital by −0.1 percentage points, so growth here is not yet paying for the capital it uses. The wiring behind it is 7.3% net margin on 0.71× asset turns.

FY26 ROCE is 15%, recovered from a FY18 trough of 10% — the full ladder below shows the fall and the climb, undoctored.

🚨 Why the return is what it is — the wiring (FY26): 7.3% net margin × 0.71× asset turns × 3.00× balance-sheet leverage ≈ 15.5% on equity. Margin does its share; leverage is a meaningful part of the equation.

The capstone test — ROIC − WACC: 11.9% − 12.0% = a −0.1 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. Negative — growth at these returns destroys value until the returns recover.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.

Kirloskar Oil Engines Ltd carries total debt of ₹5,537 Cr against shareholder equity of ₹3,575 Cr as of Mar 26, a debt-to-equity of 1.55. On the annual view that ratio went from 0.94 in FY22 to 1.55 in FY26. Read the returns elsewhere on this page with that leverage in mind.

Mar 26: total debt of ₹5,537 Cr against shareholder equity of ₹3,575 Cr — a debt-to-equity of 1.55. On the annual view, debt-to-equity went from 0.94 (FY22) to 1.55 (FY26). Read the returns on this page with that leverage in mind.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Foreign institutions added 1.3 points of Kirloskar Oil Engines Ltd over 8 quarters, the biggest move on the register. That takes foreign institutions to 11.3% of the company. Domestic institutions moved +0.6 points over the same window, to 26.0%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Foreign institutions: +1.3 points over 8 quarters to 11.3%; Domestic institutions: +0.6 points over 8 quarters to 26.0%; Promoters: −0.1 points over 8 quarters to 41.1%.

Why the register moved: foreign institutions drove it (+1.3 points), alongside domestic institutions (+0.6 points) — steady accumulation by institutions reading the same numbers this page reads.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Kirloskar Oil Engines Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

Frequently asked questions