Last Updated2026-06-02

Market View

₹1,856.9(▼3.21%)

Reporting PeriodQ4 FY26

KIRLOSENGKirloskar Oil Engines Limited Forensic Risk Analysis

Name: Kirloskar Oil Engines Limited Structural Risk Analysis
Creator: Flagium AI
License: https://creativecommons.org/licenses/by-nc-nd/4.0/

Compressors Pumps & Diesel Engines

Risk ClassStable

Market Cap₹20,480 Cr

Primary DriverBalance Sheet Stress

Flagium AI Risk Score

6 / 100

-1 QoQ

Improving

Sentinel Insight

Financial profile remains stable for now. Pressure is receding in balance sheet stress. This indicates that forensic pressure is currently receding. Minor improvements are visible in the risk trend.

41.7th %ile (Sector)Accel: +0 Qtrs

Updated2026-06-02

Market View

₹1,856.9▼3.21%

PeriodQ4 FY26

Score Waterfall
Absolute contribution points of each forensic pillar to the final risk score. Derived from: Sector Baseline + Active Penalties - Mitigation Buffers.

Balance Sheet Stress

+6.4 pts

Final Composite Risk6 / 100

Investment Risk Thesis

Historical Trend

Current risk score has declined from 13 → 6 over 13 quarters.

Expected Direction

⚠ Watch

Primary Deterioration Drivers

Inventory Stress
Relative Growth Weakness
Working Capital Expansion

What to Watch Next Quarter

Operating cash flow
Inventory turnover
Operating profit margins

Active Risk Objects (7)

CriticalHigh

Cash Conversion Deficit

📊 Earnings QualityAnnualActive for 3 Years

More Detail

Impact Weight6/15

MomentumPersistent

Last SignalFY2026

KIRLOSENG: OCF below Net Profit in 2/3 recent years.

"Cash conversion is dangerously low. Operational cash flow is significantly trailing reported PAT."

Inventory Stress

📊 Earnings QualityAnnualActive for 2 Years

More Detail

Impact Weight15/15

MomentumDecaying

Last SignalQ2 FY2025

Inventory growth (31.5%) significantly outpaced revenue growth (15.5%).

"Inventory overhang is clearing. Stock levels are normalizing as sales momentum returns."

Negative FCF Streak

⚖️ Governance SignalsAnnualActive for 2 Years

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Impact Weight6/15

MomentumDecaying

Last SignalFY2025

KIRLOSENG: Negative Free Cash Flow for last 3 consecutive years.

"Free cash flow pressure is easing as capital intensity or working capital stress recedes."

Working Capital Expansion

💧 Liquidity & CoverageAnnualActive for 1 Years

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Impact Weight10/15

MomentumAccelerating

Last SignalQ4 FY2026

Working capital expansion detected: Receivable days increased by 13.7%.

"Early signs of working capital expansion. Receivable or inventory days are creeping up."

Low Interest Coverage

💧 Liquidity & CoverageQuarterlyActive for 7 Qtrs

More Detail

Impact Weight8/15

MomentumDecaying

Last SignalQ3 FY2026

KIRLOSENG: Low Interest Coverage Ratio of 2.16x in FY2026 Q3 (Threshold: 2.5x).

"The ability to cover interest is strengthening as earnings improve or debt is retired."

Operating Leverage Stress

📊 Earnings QualityAnnualActive for 3 Years

More Detail

Impact Weight10/15

MomentumPersistent

Last SignalQ2 FY2026

Expenses are consistently growing faster than revenues, creating operational pressure.

"Debt levels are creeping up. Monitor for signs of excessive borrowing for non-core activities."

Relative Growth Weakness

📊 Earnings QualityAnnualActive for 1 Years

More Detail

Impact Weight12/15

MomentumAccelerating

Last SignalQ1 FY2026

Revenue growth consistently lags behind sector median (12.8%).

"Early signs of earnings quality decay. Profitability is being driven by non-core items."

Risk Trajectory

Loading Chart

Resilience Matrix

Metric	Value	vs Sector	Signal
Volatility (σ)	4.58	7.92	✅ RESILIENT
Sensitivity (ε_s)	1	1.00	✅ RESILIENT
Escalation Prob.	5%	5%	✅ NEUTRAL
Safety Buffer	+60.0	+58.0	✅ RESILIENT

Forensic Benchmark Context: Compressors Pumps & Diesel Engines (n=13 peers)

Correlation Analysis
Visualizing the relationship between stock price movement and structural risk objects.

Loading Chart

Share Price

Risk Score (0-100)

Market Performance

₹1,856.9(-3.21%)

1M Divergence+7.08%

1 Week+6.06%

1 Month+9.35%

6 Months+59.66%

1 Year+111.84%

2 Year+50.99%

3 Year+363.69%

Sector Average (1M)+2.27%

Sentinel Forensic Assessment

ALGORITHMIC RISK PROFILE • NON-ADVISORY

The structural architecture is currently robust. Capital resilience buffers in balance sheet stress remain well-maintained against forensic benchmarks. Systematic scans of core structural metrics confirm the absence of material structural stress. The current structural trajectory supports a stable risk outlook.

KIRLOSENG • MARKET STRUCTURE

Stage 2 — Advancing

The company is in a growth phase. Institutional sentiment is highly positive, supported by strong fundamentals and sustained risk reduction.

Stage Transition Prob.97%

Trend QualityStrong

Phase Progression

Phase Progression Score92.5%

Readiness LabelHigh (Phase Transition Imminent)

Probability of Advancing97%

CoinTree Momentum

Composite Z-Score+1.3629σ

Strong positive momentum leadership

Universe Rank#159 of 2716

Top 5.85% in momentum strength

Timeframe Sparklines

1W+6.1%

1M+9.3%

6M+59.7%

Weinstein Indicators

150 DMA₹1,333.34

200 DMA₹1,227.38

150 DMA Slope+8.8838%Rising

Relative Strength+76.80%Leading

Relative Turnover (RTR)1.1392

ParticipationNeutral

PEER COMPARISON

Ranked comparison against sector peers

Risk profile is broadly in line with the Sector Mean (8).

Ticker	Risk Score	Sector %ile	Delta	Flags	Accel	Primary Driver
CUMMINSINDCummins India Limited	5	17th	+5	8	+1	Balance Sheet StressStable
KIRLOSENGKirloskar Oil Engines Limited	6	42th	-1	7	+0	Balance Sheet StressStable
KSBKsb Limited	19	67th	-5	11	+0	Competitive PositionStable
INGERRANDIngersoll Rand (India) Limited	35	83th	-8	18	+0	Earnings QualityWatch