Kirloskar Oil Engines share price rises on ₹270 crore deal with Indian Navy; check details

The stock climbed 1.76% to ₹742 apiece on the National Stock Exchange (NSE) at 9:26 am.

In an exchange filing, the company said that the order is for the design and development of 6 megawatt (MW) medium speed marine diesel engine.

The prototype diesel engine will have more than 50% indigenous content and will be developed at a cost of ₹270 crore with 70% funding from the government.

Currently, a majority of the engines are imported, and this project is a significant step towards the government's ‘Make in India’ initiative.

The timeline for project execution is 36 months.

The design and development of the project will be done locally by the research and development teams of Kirloskar Oil Engines.

Reacting to the development, Gauri Kirloskar, the company's Managing Director, said, "We are honoured to be selected by the Indian Navy for this prestigious project and to have the opportunity to contribute to the building of our nation. This is a proud moment for all of us at KOEL, and I am sure that with the technical and R&D strength that we have, we will be able to deliver yet another world-class product to the Indian Navy."

In the third quarter of the financial year 2024-25, Kirloskar Oil Engines posted a 37% decline in its net profit to ₹68 crore. In the year-ago period, the post-tax profit was ₹108 crore.

Revenue from operations was ₹1,454 crore in Q3 FY25, reflecting an increase of 4% from ₹1,391 crore in the same period last fiscal.