Nature of the Disclosure

Regulatory filing pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, submitting audited consolidated financial results for the quarter and year ended 31 March 2026. These results incorporate the effect of a Scheme of Arrangement and Merger by Absorption that was approved by the National Company Law Tribunal (NCLT), Mumbai.

Key Quantitative Figures

Profit & Loss (Consolidated, in ₹ Crores)

  • Q4 FY26 Net Profit: ₹112.93 crore (Q4 FY25: ₹97.09 crore)
  • FY26 Net Profit: ₹503.18 crore (FY25: ₹308.22 crore)
  • Profit from Continuing Operations (FY26): ₹503.11 crore
  • Profit from Discontinued Operations (FY26): ₹0.07 crore
  • Total Comprehensive Income (FY26): ₹249.11 crore (FY25: ₹1,436.12 crore)
  • Earnings Per Share - Basic (FY26): ₹217.51 (FY25: ₹146.41)
  • Earnings Per Share - Diluted (FY26): ₹216.17 (FY25: ₹143.76)

Balance Sheet (Consolidated, as of 31 March 2026, in ₹ Crores)

  • Total Assets: ₹11,690.24 crore (Mar 2025: ₹11,650.83 crore)
  • Cash & Cash Equivalents: ₹97.42 crore (Mar 2025: ₹51.46 crore)
  • Investments: ₹4,398.60 crore (Mar 2025: ₹4,729.80 crore)
  • Trade Receivables: ₹1,089.99 crore (Mar 2025: ₹1,044.41 crore)
  • Total Liabilities: ₹3,343.96 crore (Mar 2025: ₹3,495.17 crore)
  • Total Equity: ₹8,346.28 crore (Mar 2025: ₹8,155.66 crore)
  • Equity Attributable to Owners: ₹6,249.59 crore
  • Non-Controlling Interest: ₹2,096.69 crore

Cash Flow (Consolidated FY26, in ₹ Crores)

  • Net Cash from Operating Activities: ₹871.19 crore (₹599.70 crore in FY25)
  • Net Cash Used in Investing Activities: (₹470.65) crore ( (₹536.70) crore in FY25)
  • Net Cash Used in Financing Activities: (₹354.58) crore ( (₹70.06) crore in FY25)
  • Net Increase in Cash: ₹45.96 crore

Dates of Action

  • NCLT Merger Approval Date: 2 June 2026
  • Merger Effective Date (Appointed Date): 1 April 2025
  • Board Meeting Date: 19 June 2026 (commenced 10:45 AM, concluded 11:35 AM)
  • Financial Period: Quarter and Year ended 31 March 2026

Parties Involved

  • Holding Company: Kirloskar Industries Limited
  • Subsidiaries: Kirloskar Ferrous Industries Limited (KFIL), Avante Spaces Limited (Wholly Owned)
  • Transferor Companies (Merged Entities): Oliver Engineering Private Limited (OEPL), Adicca Energy Solutions Private Limited (AESPL)
  • Statutory Auditor: Kirtane & Pandit LLP
  • Regulator: National Company Law Tribunal (NCLT), Mumbai Bench

Purpose or Stated Rationale

The financial results have been updated to give effect to the Scheme of Arrangement and Merger by Absorption of Oliver Engineering Private Limited and Adicca Energy Solutions Private Limited with Kirloskar Ferrous Industries Limited (a subsidiary), approved by NCLT. The merger was effective from the appointed date of 1 April 2025.

Financial Impact

  • Deferred Tax Asset Recognition: ₹141.28 crore recognized on 1 April 2025 for unabsorbed depreciation and carried forward losses of the transferor companies.
  • Current Tax Reversal: ₹110.38 crore reversed in updated financial results due to utilization of carried-forward losses & unabsorbed depreciation.
  • Exceptional Items:
  • Statutory impact of new Labour Codes: ₹18.93 crore expense (primarily due to change in wage definition).
  • Reversal of ESAR charge: ₹3.73 crore income (gain on unvested options due to employee separation).
  • Net Exceptional Item Impact: (₹15.20) crore expense for the year.

Capital Structure Impact

  • Paid-up Equity Share Capital: ₹10.51 crore (Face Value ₹10 each)
  • Other Equity (Reserves): ₹6,239.08 crore
  • No change in share capital due to the merger as it was an absorption of private companies into a subsidiary.

Cash Flow Implications

  • Dividend Paid: ₹62.51 crore outflow
  • Interest Paid: ₹125.14 crore outflow
  • Capital Expenditure: ₹450.58 crore outflow for property, plant and equipment
  • Proceeds from Issue of Equity Shares: ₹4.77 crore inflow

Segment-wise Performance (FY26, in ₹ Crores)

  • Investments (Securities & Properties): Revenue ₹25.06, PBIT ₹654.43
  • Real Estate (Avante Spaces): Revenue ₹16.00, PBIT (₹3.18)
  • Iron Casting (KFIL): Revenue ₹4,919.28, PBIT ₹107.81
  • Tube (KFIL): Revenue ₹1,200.87, PBIT ₹17.08
  • Steel (KFIL): Revenue ₹1,132.27, PBIT ₹11.83

Other Material Disclosures

  • The previous auditor's report dated 19 May 2026 (UDIN: 26117309NTVMLH7125) stands cancelled.
  • The company does not have significant influence over Kirloskar Brothers Limited (KBL), hence it is not consolidated.
  • A subsidiary, ISMT Enterprises SA Luxemburg, was liquidated during the quarter ended 30 June 2025, resulting in a gain of ₹0.50 crore and reclassification of ₹2.02 crore from Foreign Currency Translation Reserve to P&L.
  • The financial figures for Q4 FY26 are balancing figures between the audited full year and published unaudited figures up to Q3 FY26.