Kirloskar Oil up 5% after Rs 270 cr deal with Indian Navy

Kirloskar Oil Engines shares rallied 5% in Thursday's early trade to their intraday high of Rs 765 on the BSE after the company secured a Rs 270 crore order from the Defence Ministry for the design and development of a 6MW Medium Speed Marine Diesel Engine.

The Indian Navy signed the project sanction order under the Make-I category, marking a step towards indigenous marine engine development. 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 with indigenous content of over 50% will be developed at a cost of Rs 270 crore, with 70% funding from the Government of India. The order also includes the development of detailed design for a 3- 10MW diesel engine. The developed engines will be used for Main Propulsion and Power Generation on ships of the Indian Navy and the Indian Coast Guard.

"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.

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The ministry emphasized that the deal aligns with the government's push for indigenous defence manufacturing under Aatmanirbharta, reducing reliance on foreign suppliers and boosting the domestic defence ecosystem.

Earlier in March, the Cabinet Committee on Security (CCS) approved a Rs 7,000 crore deal for the acquisition of 307 advanced towed artillery gun systems (ATAGS) for the Indian Army.

"In a significant milestone for India's defence sector, the CCS approved the acquisition of Advanced Towed Artillery Gun System (ATAGS) worth nearly Rs 7000 crore, marking a major step towards self-reliance in artillery gun manufacturing."

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The ATAGS is an advanced towed artillery gun system featuring a long 52-calibre barrel, allowing for extended firing ranges of up to 40 km. With its larger calibre, the system ensures higher lethality, delivering increased explosive payloads while enabling automated deployment, target engagement, and reduced crew fatigue.

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