The Kirloskar Renaissance: From Stagnation to a $5 Billion Vision
For over a century, the Kirloskar name has been synonymous with Indian industrial strength. But even legends face lulls. After nearly a decade of sluggish growth, the Kirloskar Group—helmed by brothers Atul and Rahul Kirloskar—has set an ambitious course to reclaim its pioneering legacy. The target: doubling cumulative revenue to $5 billion by 2030, driven by bold diversification, generational leadership, and a strategic infusion of ₹5,000 crore in new manufacturing capacities over the next three years.
Turning the Tide
The last ten years weren’t kind to the group. Despite its strong engineering heritage, the lack of new products kept growth stagnant. Yet, about three years ago, the tide began to turn. The four listed entities—Kirloskar Oil Engines Ltd (KOEL), Kirloskar Pneumatic Company Ltd, Kirloskar Ferrous Industries Ltd, and Kirloskar Industries Ltd—started to show remarkable improvement.
By 2023 and 2024, revenues surged, investor confidence returned, and stock prices climbed sharply. Even with a market correction in 2025 that trimmed valuations by over 25%, the underlying fundamentals remain stronger than ever. “We have switched gears and we see a bright future ahead of us,” said Rahul Kirloskar, chairman of Kirloskar Pneumatic and Kirloskar Ferrous, signaling renewed momentum.
A New Era at Kirloskar Oil Engines
Much of this turnaround centers on KOEL, the group’s flagship company. Under the stewardship of Gauri Kirloskar—daughter of Atul and Aarti Kirloskar—the company has evolved from a diesel engine maker into a future-ready power solutions provider.
Gauri’s leadership marked a philosophical shift. “We went from saying we’re a diesel engine manufacturer to saying we’re an internal combustion engine manufacturer who can run on every fuel,” she said, redefining the company’s vision. KOEL is now targeting $2 billion (around ₹17,700 crore) in revenues by 2030, banking on new technologies like hybrid engines and fuel cells.
A key growth frontier lies in backup power generators for data centres—a booming sector in the digital economy. KOEL also plans to ramp up exports, supported by India’s alignment with international emission norms, while expanding its footprint in the railways and defence sectors.
When Gauri took charge in 2022, she set a goal to double business in three years. Two years on, revenues are up 1.6 times, and profits have more than doubled. The secret? Empowering leadership and fostering autonomy within teams.
Beyond Engines: Finance and Real Estate
The group’s ambitions extend far beyond manufacturing. Arka Fincap Ltd, KOEL’s non-banking financial arm, is steering into retail lending—targeting used vehicle loans and small-ticket property loans. With a ₹6,000 crore loan book, the NBFC plans to list independently by 2030, marking a new chapter in financial services.
Meanwhile, real estate has emerged as another strategic pillar. Using its vast land reserves, the group has completed its first 150,000-square-foot office building in Pune’s Kothrud area, now serving as headquarters for all group companies. A second, 1.5-million-square-foot tower is already underway, set to be lease-ready by 2028. “The intention is, over the next five years or so, to develop this business and build it up to scale,” said Rahul Kirloskar.
Market Confidence and Analyst Optimism
Analysts share the Kirloskars’ optimism. Antique Stock Broking praised KOEL’s “strategic restructuring” and strong internal culture as key drivers of its “2X-3Y” growth trajectory—doubling business within three years. JM Financial echoed the sentiment, highlighting new product launches, export expansion, and a favorable industrial outlook as strong medium-to-long-term tailwinds.
Kirloskar Pneumatic and Kirloskar Ferrous, too, are expected to maintain robust growth, supported by industrial recovery and product diversification.
The Road Ahead
The Kirloskar Group’s comeback is not just about reclaiming lost ground—it’s about redefining what legacy means in modern India. From diesel engines to fuel cells, from foundries to finance, and from factories to real estate, the group is rebuilding itself as a diversified, future-facing powerhouse.
The journey to $5 billion by 2030 is more than a financial milestone—it’s a statement of resilience, reinvention, and renewal.
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This article should not be interpreted as investment advice. For any investment decisions, consult a reputable financial advisor. The author and publisher are not responsible for any losses incurred by investors or traders based on the information provided.