Kirloskar Oil Q2 FY27 Results (NSE: KIRLOSENG)
Signal: Growth reaccelerated
The read
The trajectory is mixed: consolidated revenue accelerated to ₹2,284.04 Cr, +17.1% YoY versus +13.5% in Q1FY27, but PAT fell 18.1% to ₹130.31 Cr and EPS fell 19.1% to ₹9.04. B2B and B2C momentum is intact, while the financial-services subsidiary and higher employee, depreciation and finance costs are keeping group earnings below the prior-year base.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,284.04 Cr | +17.1% | +14.2% |
| Net profit | ₹130.31 Cr | -18.1% | |
| EPS | ₹9.04 | -19.1% | |
| EBIT margin | N/A |
P&L walk
Revenue increased to ₹2,284.04 Cr, +17.1% YoY and +14.2% QoQ, but PAT declined to ₹130.31 Cr, -18.1% YoY, with employee costs up 28.7%, depreciation up 27.6% and finance costs up 42.0%.
Segments
B2C was the fastest-growing operating segment at ₹330.21 Cr revenue, +27.8% YoY and ₹28.87 Cr result, while B2B remained the main earnings driver at ₹1,745.28 Cr revenue and ₹147.59 Cr result; Financial Services revenue fell 11.5% YoY to ₹208.55 Cr and contributed only ₹0.05 Cr of result, creating the main standalone-to-consolidated drag.
Key positives
- Consolidated revenue increased to ₹2,284.04 Cr, +17.1% YoY and +14.2% QoQ, accelerating from Q1FY27 growth of 13.5% YoY.
- B2B revenue grew 19.8% YoY to ₹1,745.28 Cr and B2C revenue grew 27.8% YoY to ₹330.21 Cr.
- Standalone continuing-operations PAT increased 41.3% YoY to ₹115.17 Cr, indicating that the parent manufacturing business performed better than the consolidated headline.
Key concerns
- Consolidated PAT declined 18.1% YoY to ₹130.31 Cr despite 17.1% revenue growth, showing weak earnings conversion at group level.
- Employee benefits increased 28.7% YoY to ₹194.45 Cr, depreciation increased 27.6% to ₹53.60 Cr and finance costs increased 42.0% to ₹12.19 Cr.
- Financial Services revenue declined 11.5% YoY to ₹208.55 Cr and its segment result was only ₹0.05 Cr, materially below the contribution of the B2B and B2C businesses.
- Standalone inventories increased to ₹938.40 Cr from ₹603.41 Cr and operating cash flow fell to ₹39.80 Cr in H1FY27 from ₹235.43 Cr in H1FY26.
Research and educational content only. Not investment advice.