Kirloskar Oil Engines shares surged 4 per cent in early trading on Thursday, reaching an intraday high of ₹765 on the BSE. The rally followed the company’s announcement of securing a ₹270 crore order from the Defence Ministry to design and develop a 6MW Medium Speed Marine Diesel Engine.
Kirloskar Oil Engines stock has gained nearly 30.52 per cent in over a month despite weak market sentiments.
Kirloskar Oil – Indian Navy deal
The Indian Navy has issued a project sanction order under the Make-I category, advancing the development of indigenous marine engines. The agreement was signed in New Delhi on April 2, 2025, in the presence of Defence Production Secretary Sanjeev Kumar and Vice Chief of the Naval Staff, Vice Admiral Krishna Swaminathan.
The prototype diesel engine will have an indigenous content of over 50% and will be developed at a cost of ₹270 Cr with 70% funding from the Government of India. Under this order, Kirloskar Oil Engines will design and develop inhouse, 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 Indian Navy and Indian Coast Guard, the company said in a release.
“Most of the diesel engines of higher capacity were being imported from foreign Original Equipment Manufacturers (OEM) to date. This project will start the process in achieving self-reliance in marine engine development in the country,” the Defence Ministry said in a statement.
The ministry highlighted that the agreement supports the government’s initiative for indigenous defense manufacturing under Aatmanirbharta, aiming to reduce dependence on foreign suppliers while strengthening the domestic defense industry.
“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,” said Gauri Kirloskar, Managing Director, Kirloskar Oil Engines.
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