Kirloskar Pneumatic Makes SCIL Wholly Owned Subsidiary for ₹12.55 Crores

Kirloskar Pneumatic Company has completed the acquisition of the balance 44.74% equity shares in Systems and Components (India) Private Limited (SCIL) for a consideration of ₹12.55 crores, pursuant to a Share Purchase and Share Holders' Agreement (SPSHA). The transaction was completed on May 4, 2026, as disclosed under Regulation 30 of the SEBI Listing Regulations, 2015. With this acquisition, SCIL has become a Wholly Owned Subsidiary of Kirloskar Pneumatic Company (KPCL), representing 100% of SCIL's equity share capital now held by KPCL.

Acquisition Details

The following table summarizes the key parameters of the transaction:

Parameter: Details Target Company: Systems and Components (India) Private Limited CIN of Target: U74210MH1989PTC054107 Registered Office of Target: E-301, Eastern Business District, L.B.S. Marg, Bhandup (West), Mumbai - 400078, Maharashtra, India Stake Acquired: 44.74% equity shares (balance shareholding) Transaction Value: ₹12.55 crores Agreement: Share Purchase and Share Holders' Agreement (SPSHA) Effective Date of Full Ownership: May 4, 2026 Regulatory Disclosure: Regulation 30, SEBI Listing Regulations, 2015

Wholly Owned Subsidiary Status

With the completion of this acquisition, Systems and Components (India) Private Limited transitions into a Wholly Owned Subsidiary of Kirloskar Pneumatic Company, effective May 4, 2026. The acquisition of the balance 44.74% equity shares was made from the existing Promoter Shareholder of SCIL, in continuation of earlier disclosures referenced as SEC&LEG/452 and SEC&LEG/455 dated April 27, 2026. The transaction represents a significant corporate milestone for Kirloskar Pneumatic Company in fully consolidating its ownership of SCIL.

Kirloskar Pneumatic Company has delivered exceptional performance in FY26, achieving record-breaking financial results and operational milestones. The company reported comprehensive growth across revenue, profitability, and order booking, while successfully launching innovative products and expanding into new business segments.

FY26 Financial Performance

The company's standalone results for FY26 demonstrate strong year-on-year growth across key financial metrics, reflecting operational excellence and strategic execution.

Financial Metric: FY26 FY25 Growth (%) Total Income from Operations: ₹17,592 million ₹16,286 million +8.02% Net Profit after Tax: ₹2,584 million ₹2,110 million +22.46% Basic EPS: ₹39.80 ₹32.56 +22.24% EBITDA Margin: 21.70% 19.00% +270 bps

Record Achievements and Strategic Milestones

During the earnings conference call held on April 27, 2026, Managing Director Aman Kirloskar highlighted several record achievements for FY26. The company achieved its highest-ever order booking of more than ₹2,000 crores and declared the highest total income of ₹1,786 crores along with the highest PBT of ₹356 crores.

The company also announced its highest dividend of ₹12 per share, representing 600% on face value of ₹2. This includes a final dividend of ₹8.50 per share (425%) in addition to the interim dividend of ₹3.50 per share (175%) already paid.

Innovation and Product Development

Kirloskar Pneumatic achieved significant innovation milestones with 57 IP filings during the year, taking the total to over 128 IPs filed. The company was recognized as a top 30 IP-driven organization by CII. Key product launches included the oil-free air compressor Hydrino, Tyche semi-hermetic compressors, and the upcoming Zephyros air conditioning package.

Product Innovation: Details IP Filings FY26: 57 (highest ever) Total IP Portfolio: 128+ filings New Products Launched: Hydrino, Tyche, Zephyros Market Recognition: Top 30 IP-driven organization (CII)

Business Segment Performance

The Air Compressor Division (18-20% of business) performed well with the Tezcatlipoca centrifugal compressor continuing to gain market share, achieving 130 machines in the field with 85 commissioned. The Refrigeration business (40-45% of business) delivered record high volumes for KC/KCX compressor range, while Process Gas Systems (35-40% of business) showed strong performance with over 1,000 CNG stations under management.

Financial Position and Outlook

The company maintains its debt-free status with net cash position of approximately ₹460 crores as of April 1, 2026. The unexecuted order board stands at ₹1,863 crores, representing a 15% increase from ₹1,624 crores recorded on April 1, 2025. Management expects sustainable EBITDA margins of 18-20% going forward and targets 20%+ growth for the coming year.

Strategic Initiatives

The company established a new Precision Engineering division to leverage manufacturing capabilities including forgings, castings, and precision components. While contributing to current order book growth, management remains cautious about the sustainability of this segment until proven over time.

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