
Kirloskar Industries Releases Business Responsibility and Sustainability Report for FY2025-2026
Kirloskar Industries Limited (KIL) has released its comprehensive Business Responsibility and Sustainability Report (BRSR) for the financial year 2025-2026. The report outlines the Company's commitment to sustainable growth, ethical conduct, and stakeholder value creation across various operational and governance domains.As an unregistered Core Investment Company (CIC), KIL supports its portfolio companies in fostering sustainable practices while maintaining a focus on responsible investment stewardship. The sustainability performance of KIL was independently assured by BDO India Services Private Limited based on the BRSR Core indicators for the period ending March 31, 2026.
Business Operations and Structure
The Company's core business activities are centered around investments in group companies, securities, and property leasing, accounting for 97% of the turnover. Wind Power Generation accounts for the remaining 3%.KIL has a registered office located at One Avante in Pune. The entity serves both national and international markets but reports zero export contribution to its total turnover.
The Company's financial commitment to stakeholders is evident in its internal dealings, with sales to related parties accounting for 81.57% of the total sales in FY2026, compared to 87.67% in FY2025. Purchases from related parties stood at 16.14% in FY2026 and 8.07% in FY2025.
A dedicated focus on human capital development is also highlighted by the Company, which has a robust ESG Governance Structure overseen by the Independent Directors Committee of the Kirloskar Group, and the management team is part of the ESG Core Committee. Mr. George Verghese, Managing Director, is responsible for overseeing the implementation of the Business Responsibility policies.
People and Social Impact
KIL reports that it provides significant support to its employees' well-being. Of the total 21 permanent employees, all are covered by health insurance, with male and female employees showing 100% coverage in the provided data. The Company ensured a dedicated focus on development through educational initiatives at the Kirloskar Industries Ltd (KIL) level.Key human capital metrics include:
| Metric | FY2026 Total | Observations |
|---|---|---|
| Permanent Employees | 21 | Female employees represent 38% of permanent staff. |
| Key Managerial Personnel (KMPs) | 4 | Female representation among KMPs stands at 50%. |
| Turnover Rate for Permanent Employees | 42% in FY2026 | A notable increase was seen, compared to 18% in FY2025. |
The Company provides a safe and healthy working environment and confirmed that all offices are equipped with necessary safety infrastructure, including ramps, emergency exits, and first aid facilities, ensuring accessibility for differently-abled employees. KIL also reported no complaints related to working conditions or health and safety during the financial year.
ESG Governance and Risk Management
The BRSR process involves a structured materiality reassessment conducted by an independent third party involving various stakeholders including suppliers and employees. This assessment identified several critical areas requiring focused attention:- Corporate Governance: Recognized as both a risk and an opportunity, robust governance is viewed as a strategic enabler supporting long-term value creation.
- Business Ethics: Identified as a key risk area requiring the implementation of clear ethical frameworks and continuous internal controls to maintain trust and credibility.
- Human Capital Development: Highlighted as an opportunity due to investment in structured talent management practices and skill building initiatives.
The company also maintained comprehensive policies regarding human rights, including a Whistle-Blower Policy and a Grievance Redressal Policy, which were put in place across the organization. KIL reported zero instances of discrimination or sexual harassment complaints being filed against employees during FY2026.
Environmental and Resource Management
As an investment company, KIL's direct operational footprint is limited. The Company has focused its environmental strategy on promoting sustainable growth through encouraging resource efficiency and supporting initiatives related to renewable energy adoption and waste management within the broader group ecosystem.Resource Intensity:
The report provided detailed metrics regarding energy consumption and water intensity:
| Parameter | FY2026 | FY2025 |
|---|---|---|
| Total Energy Consumed (Non-Renewable) | 174 units | 253.10 units |
| Water Intensity per Rupee of Turnover | 0.00000016364 | 0.00000026423 |
Waste Management:
The entity reported the total waste generated, with E-waste being recorded at 0.348 metric tonnes in FY2025. The company ensures that it engages certified e-waste handlers for the disposal of such materials.
Stakeholder and Value Chain Commitment
KIL emphasizes an inclusive approach to stakeholder engagement, defining stakeholders broadly to include employees, customers, investors, and regulatory bodies.In line with this commitment, KIL initiated a capacity building workshop for its value chain partners, aiming to enhance their readiness in adhering to BRSR Core principles and ESG data collection methodologies.
KIRLOSIND Stock Price Movement
Kirloskar Industries Limited shed ₹48.30, closing down 1.28% in the post-market session today to settle at ₹3737.30. The stock saw a traded volume of 8,785 shares during the activity.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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