Innovation continues to be central to our strategy. With more than 40 intellectual
property filings every year, we are building a knowledge ecosystem that strengthens our
independence and product leadership. This is not accidental—it's the outcome of a
structured innovation process that allows us to anticipate needs, build original solutions
and bring them to market swiftly. ft
Dear Shareholders,
It gives me immense pleasure to present the performance of Kirloskar Pneumatic Company
Limited for the financial year 2024-25. This has been a year of solid execution,
disciplined growth and meaningful progress in advancing our long-term strategy. As we
reflect on the year gone by, we take pride in the direction we are heading, becoming a
stronger, more competitive and more future-ready enterprise.
What began decades ago as a focused, single-product operation has since evolved into a
multi-product, multilocation business with an expanding presence across sectors and
markets. Our progress has been driven by consistent investments in technology, people and
manufacturing capabilities—all grounded in a clear strategic vision and deep domain
expertise.
This past year, that disciplined approach translated into strong financial results.
We closed FY 2025 with the highest-ever sales in the company's history—fl,629
Crore, reflecting growth of 23% over the previous year. Our EBITDA stood at f313 Crore,
margins expanding to 19.0%, up from 16.5% last year. Net profit for the year reached f211
Crore. KPCL continues to maintain a zero-debt position, a testament to robust capita
management and continued focus on operational efficiency.
During the year, KPCL signed a Share Purchase and Shareholders' Agreement to acquire
55.26% stake in Systems & Components (India] Private Limited— an established
player in refrigeration packages for the pharmaceutical, chemical and dairy sectors. This
strategic acquisition strengthens our footprint in the refrigeration and chiller packaging
space and significantly expands our addressable market. It marks a decisive step toward
reinforcing our leadership in the refrigeration domain and enhancing our capabilities to
serve complex industrial applications.
We choose to grow with focus. Gas remain our core. And within this core, we've built
one of the most comprehensive product portfolios in the industry—from centrifugal and
reciprocating compressors to screw and semi-hermetic models, each engineered to deliver
value across diverse customer applications.
Our differentiation lies not just in what we offer, but in how we offer it. Over 80% of
our business is built to order. With a team of more than 200 engineers and robust
capabilities in design, simulation and systems integration, we provide custom-engineered
solutions that address specific operational requirements with precision and reliability.
Innovation continues to be central to our strategy. With more than 40 intellectual
property filings every year, we are building a knowledge ecosystem that strengthens our
independence and product leadership. This is not accidental—it's the outcome of a
structured innovation process that allows us to anticipate needs, build original solutions
and bring them to market market swiftly.
One of our biggest competitive advantages lies in our ability to contro the value
chain. While much of the industry has shifted towards outsourced manufacturing, we have
chosen to retain deep in-house capabilities—from forging and casting to precision
machining and assembly. Operating from three well- integrated facilities in Hadapsar,
Saswad and Nashik, all within a 200-kilometer radius, gives us unmatched control over
quality, lead times and cost.
Sustainability remains integral to our growth story. We now operate with a total
renewable energy capacity of 1.78 MW (AC], significantly reducing our dependence on
conventional power and lowering our carbon footprint. Our facilities are also deeply
aligned with circular economy principles—minimising waste, reusing materials and
extending product lifecycles through smart design. Water conservation also remains a core
priority. We have implemented multiple initiatives aimed at reducing consumption,
enhancing recycling and restoring groundwater levels across our plants.
Our operational backbone is increasingly enhanced by technology. Our products are built
to be smart—enabling customers to monitor, operate and maintain them with greater
ease. Internally, we are aligning our plants and business functions through digital
integration, bringing agility, consistency and speed in execution.
At the heart of it all is our people. I am proud to say that KPCL has earned the Oil HR
Excellence Award for the sixth consecutive year, with one of the highest scores in the
industry. Low attrition, strong leadership development and a vibrant learning culture make
us a preferred destination for talent, especially for seeking to build a career in high-
impact industrial innovation.
In order to commemorate the 50th Annua General Meeting of the Company, the Board of
Directors has proposed a total dividend of 500% for the fiscal year. This includes a final
dividend of 325% (f6.50 per share], in addition to the interim dividend of 175% (f3.50 per
share]. This marks the highest dividend payout in the Company's history and reflects our
strong performance and commitment to delivering value to our shareholders.
As we look ahead, we do so with quiet confidence. The foundations are strong. The
strategy is clear. The momentum we have built gives us every reason to believe that the
best is yet to come.
Thank you for your continued trust and support.
Warm regards,
Rahul C Kirloskar
Executive Chairman
Kirloskar Pneumatic Company Limited