Date: 30th September 2026

Board Meeting Outcomes

  • The Board of Directors previously approved an investment of approximately INR 8 Crore in Kirloskar International ME FZE (KIME), UAE, a wholly owned subsidiary, by purchasing 3200 Equity Shares at AED 1000 per share (aggregate consideration AED 3.2 million).
  • Out of this amount, approximately INR 5.5 Crore (subject to closing adjustments) was earmarked for KIME to purchase 100% equity shares of Kirloskar Trading SA (PTY) Limited (KTSPL), Johannesburg, South Africa.
  • The acquisition makes KTSPL a wholly owned subsidiary of KIME and a step-down subsidiary of Kirloskar Oil Engines Limited.

Disinvestment / Strategic Actions

  • KIME executed a Share Purchase Agreement on 30th September 2026 to acquire 100% equity shares of KTSPL.
  • The final acquisition cost was INR 8.25 Crore (ZAR 14.08 MN), increased from the initial estimate due to closing adjustments primarily on account of an increase in cash and cash equivalents.
  • The transaction represents a related party transaction as KTSPL is a Promoter Group Company of KOEL, but was conducted at arm's length basis.
  • The strategic rationale is to expand footprint in the Africa Region through a direct entity model rather than distributor model, enabling direct connect with end customers.
  • KTSPL operates in engineering and industrial products/equipment manufacturing, assembly, trading, and services.
  • KTSPL was incorporated on 29th October 2013 and acts as an authorized agent for identifying customer needs, enabling market-specific product development, and catering to service requirements in the Africa region (South Africa, Kenya, Nigeria, etc.).
  • KTSPL operates through Stock and Sale model and also receives orders for KOEL Products from the Africa Region where direct billing is done with commission paid to KTSPL.

Financial Information of Acquired Entity

  • KTSPL changed its financial year from "January to December" to "April - March" effective 2025.
  • The first financial period after this change was a 15-month period from January 2025 to March 2026.
  • Financial performance (using ZAR/INR exchange rate of 5.52 as on 31st March 2026):
  • FY2026 (Jan 2025-Mar 2026, Unaudited): Total Income INR 26.03 Crore (ZAR 47,163,169)
  • Historical financial performance:
  • FY2025 (Jan-Dec, Provisional): Total Income INR 15.5 Crore (ZAR 28,665,305.82) at ZAR/INR 5.4243
  • FY2024 (Jan-Dec, Audited): Total Income INR 17.6 Crore (ZAR 32,463,931)
  • FY2023 (Jan-Dec, Audited): Total Income INR 21.0 Crore (ZAR 38,742,134)