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Kirloskar Oil rallies on securing Rs 270-cr defence order from Indian Navy

03-Apr-25 11:00 Hrs IST

According to an exchange filing, the order pertains to the design and development of a 6 MW medium-speed marine diesel engine under the Make-I scheme. The project sanction order was signed on 2 April 2025, marking a significant milestone in India's efforts to enhance indigenous defense capabilities.

The order includes the design of a medium-speed marine diesel engine scalable from 3-10 MW capacity, along with the development and supply of a prototype 6 MW engine. The prototype will feature an indigenous content of over 50% and is being developed with an estimated cost of Rs 270 crore, with 70% funding provided by the Government of India under the Make-I scheme.

Under this project, the company will design and develop in-house medium-speed engines scalable from 3 MW to 10 MW, and the developed engines will be used for main propulsion and power generation on ships of the Indian Navy and Indian Coast Guard. Currently, most of these engines are imported, and this project is a significant step in the Government of India's vision of indigenisation and achieving self-reliance in marine engine development in this country. This marks a significant step in the ongoing efforts of the Government of India to indigenise critical technologies and achieve Aatmanirbharta in Defence.

The project is scheduled for completion within 36 months. The company also clarified that the contract does not involve any related party transactions and confirmed that neither the promoter, promoter group, nor any group companies have any interest in the awarding entity.

Gauri Kirloskar, managing director of Kirloskar Oil Engines, 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. We would like to thank the Ministry of Defence and the Indian Navy, for their support and guidance.'

The official announcement was made on Wednesday, 02 April 2025, after market hours.

Kirloskar Oil Engines is a leader in the manufacturing of diesel engines, agricultural equipment and generator sets with a sizable presence in international markets.

The company's consolidated net profit fell 20.6% to Rs 71.30 crore in Q3 FY25 as against Rs 89.82 crore posted in Q3 FY24. However, revenue from operations rose 4.5% YoY to Rs 1,453.70 crore in the quarter ended 31 December.