Developed at a small-scale machine tool workshop behind a bicycle shop, the iron plough proved to be the first among many engineering innovations that the Kirloskar group would pioneer in the future.
Since then, over the last 135 years, the group has grown multifold to introduce a wide range of products from diesel engines to electric motors; agricultural equipment to industrial scale refrigeration systems and from compressors to road railers.
Lately, stocks from the group are increasingly drawing attention due to growth prospects. We take a look at the top three Kirloskar Group stocks.
These stocks have been selected based on a three-year CAGR in net profits of more than 20% and ROE of more than 15%.
#1 Kirloskar Brothers
The company has delivered a solid 70.4% CAGR in net profits over three years. The ROE of the company stands at 19.3%.
Established in 1888, the company is India’s largest manufacturer of centrifugal pumps and valves. It specializes in fluid management systems, engineering solutions that shift massive volumes of liquids for large-scale global infrastructure.
For the quarter ended 31 March 2026, the company’s consolidated revenue stood at ₹1,415 crore, marking a growth of 10% on a year-on-year basis. For the full year FY26, revenue was ₹4,538 crore, reflecting a marginal growth of 1% compared to the same period last year.
The net profit for Q4FY26 was ₹112 crore, while full-year net profit stood at ₹377 crore.
In the first half of FY26, the company was impacted by adverse seasonal trends, which affected demand in the small pump segment, primarily catering to the agricultural sector.
According to the management, there were delays in the Jal Jeevan Mission due to funding-related issues, which affected dispatches and production schedules.
The company’s domestic order book stood at ₹2,468 crore, registering a robust growth of 30% over the previous year, while the international order book also remained strong, growing 21% year-on-year to ₹1,480 crore.
Looking ahead, the management says that they remain optimistic about the company's growth trajectory backed by a healthy mix of domestic and international business, a robust order pipeline and continued focus on operational excellence.
#2 Kirloskar Oil
The company has delivered a solid 40.7% CAGR in net profits over three years. The ROE of the company stands at 15.5%.
The company’s main businesses include power generation, industrial engines, farm mechanisation, water solutions, firefighting systems and electric motors. Its engines are used in sectors such as construction, mining, railways, defence, marine, agriculture and infrastructure.
At a standalone level, the company achieved its highest-ever quarterly sales in Q4FY26, reaching ₹1,522 crore, a 24% year-on-year growth.
This resulted in full-year net sales of ₹5,604 crore, representing a 25% year-on-year increase. In Q4, the domestic business grew 26% while the international business grew 10% compared to the same quarter last year. The Powergen segment grew 32% over the previous year. On a quarterly basis, Powergen grew 30% year-on-year.
The management in an earnings conference call has revealed that the company’s market share has improved significantly across all nodes. In the high horsepower segment, where Kirloskar Oil Engines had a market share that was negligible a couple of years ago, it is now approaching double digits.
While the overall annual diesel generator market grew 18% to approximately 179,000 units, including telecom, Kirloskar Oil Engines grew by 41%, selling upwards of 50,000 units in FY26.
The company is now amongst the top 10 manufacturers in the world by volume in the industrial and Powergen space. The company sold 1 m pumps last year.
According to the management, the company is progressing well against its goal to be a US$2 bn company by Fiscal Year FY30.
#3 Kirloskar Pneumatic
The company has delivered a solid 35.5% CAGR in net profits over three years. The ROE of the company stands at 19.4%.
Kirloskar Pneumatic Company is another key heavyweight from the Kirloskar Group. Founded in 1958, it is a specialized player focused squarely on air compression, industrial refrigeration, and gas processing technologies.
In Q4FY26, the company reported revenue of ₹712 crore, compared to ₹592 crore in the corresponding period last year. Net profit for the quarter stood at ₹144 crore, up from ₹80 crore in Q4FY25.
During FY26, the company recorded its highest-ever order booking of more than ₹2,000 crore. Kirloskar Pneumatic also reported its highest-ever total income of ₹1,786 crore and its highest profit before tax (PBT).
According to the management, products such as the Tezcatlipoca centrifugal compressor and the Khione refrigeration compressor continued to gain market share.
On the innovation side, Kirlsokar Pneumatic made significant progress on development of several cutting-edge compression solutions, represented by its highest ever IP filings of 57 for the year, taking the total to 128 IPs filed.
Despite the challenges of the past year, including delayed package orders and late finalization of large contracts, the management believes the company is well positioned to deliver strong growth ahead.
Should you add Kirloskar group stocks to your watchlist?
Kirloskar group stocks can be considered for a watchlist due to their strong brand, engineering expertise, and exposure to long-term themes like infrastructure, water management, manufacturing, and energy.
Companies have established businesses with growth opportunities.
However, investors should remain cautious about valuations, cyclical industrial demand, competition, and execution risks. It is important to analyse each company separately rather than investing based only on the brand name.
Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.
Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such.
This article is syndicated from Equitymaster.com