Kirloskar Oil Engines Ltd

- Kirloskar Oil Engines has an ongoing capex plan deploying INR 700 crores to ramp up operations. - Capital allocation philosophy is active, with updates provided post Board meetings and earnings calls. - Recent investment of close to INR 8 crores in Middle East entity aimed at acquisition of a South African entity for strategic international market expansion. - Creation of subsidiaries like Kirloskar Advanced Systems for specialized government work (Defence, Railways) indicating strategic investment for system integration and Defence contracting. - Continued investment and capability building in the U.S. market via subsidiary Kirloskar Americas, though not at a mature stage for detailed disclosure. - Overall strategic focus on enhancing capability, capacity, and coverage in international markets through possible joint ventures, acquisitions, or in-house setups.

- Kirloskar Oil Engines aims to achieve a $2 billion revenue run rate by FY 2030, representing approximately 3x growth from current levels. - The company expects continued growth in High Horsepower (HHP) segments, which are expanding faster and contributing to improved margins. - Domestic Power Gen sales are growing robustly, with a 44% YoY increase in the current quarter. - The Industrial segment and exports are also seeing healthy growth (Industrial +41% YoY, Exports +26% YoY). - International expansion is planned with focus on capability, capacity, and coverage, especially in markets like Middle East, Africa, U.S., and Southeast Asia. - Capex of INR 700 crores is being deployed to ramp up operations, with possible future increases aligned to growth. - Growth drivers include broad-based infrastructure demand, increased focus on advanced products, aftermarket, and exports, all contributing to sustained revenue expansion.

- The company targets becoming a $2 billion revenue business by fiscal year 2030, implying approximately 3x growth from current levels. (Page 15) - Margins are expected to improve over the 5-year period driven by focus on advanced products, aftermarket, and exports which typically drive better margins in the industry. (Page 15) - Operationally, the firm is undertaking INR 700 crores capex to ramp up operations supporting growth. Capital allocation philosophy is ongoing with updates shared post board meetings. (Page 16) - There is confidence in sustaining growth momentum, especially with broad-based demand in infrastructure and industrial segments like Defence, Nuclear, Marine, and Power Gen. (Page 13) - EBITDA margin was at 12.2% for Q3 FY '26, up from 10.3% last year, indicating margin expansion efforts underway. (Page 5) - The shift towards High Horsepower (HHP) segment, which has higher margins, supports future margin improvement expectations. (Pages 6, 9, 15) Overall, the company expects robust revenue growth with improving profitability over the medium term.

- The company discussed large orders from NPCIL and Marine segments under the Industrial business. - These include large gensets of 6.3 megawatts each. - The basic value of these orders is INR 798 crores. - Execution timeline for these orders is approximately 2 years from now. - These orders have not yet been executed as of Q3 FY '26. - No further detailed specifics on the execution schedule or additional pending orders were disclosed. - The company continues to focus on key account management and identified white spaces to sustain growth and order execution.

- There is no explicit mention of any current or planned fundraising through debt or equity in the provided transcript. - The company is executing a capex plan with INR 700 crores allocated for ramping up operations but has not indicated the source of this capital in terms of fresh equity or debt. - Rahul Sahai mentioned a capital allocation philosophy in progress and stated that any actions related to capital will be reported post Board meetings or in future calls. - No direct commentary on plans for new fundraising through equity or debt was given during the call.