Key Financial Figures (H1 FY27 vs. Prior Periods)

All figures are consolidated and in ₹ crore, except margins and EPS.

| Metric | H1 FY25–26 | H2 FY25–26 | H1 FY26–27 |

| Revenue from Operations | 32.04 | 32.33 | 30.46 |

| PBT | 3.72 | 2.25 | 1.62 |

| Group PAT | 2.47 | 1.50 | 1.20 |

| PAT Attributable to Owners | 2.43 | 1.48 | 1.19 |

| Group PAT / Revenue Margin | 7.71% | 4.62% | 3.93% |

| EPS (₹ per share) | 3.18 | 1.73 | 1.15 |

Key Changes:

  • H1 FY27 Revenue declined 4.9% compared to H1 FY25–26 (₹32.04 cr vs. ₹30.46 cr).
  • Group PAT margin contracted significantly to 3.93% from 7.71% in H1 FY25–26.

Reasons for Profitability Decline

Management cites four primary reasons for the margin pressure:

1. Steelwool Pricing Lag: Material inflation of approximately 10% was met with only an 8.5% finished good (FG) price recovery.

2. Conventional Fiber Challenge: Wire-rod inflation of about 20% was not fully passed through, with actual FG recovery varying by product.

3. Selective Order Acceptance: Lower dispatched volumes increased the fixed cost per unit.

4. Loop End Impact: Growth in higher-value Loop End sales provided a partial offset, but the consolidated profit impact requires a verified cost allocation.

Product-Wise Performance (H1 FY27)

This schedule represents manufacturing product sales and not total reported revenue.

| Product | H1 Sales (₹ cr) | Volume YoY Change | ASP YoY Change |

| Steelwool | 5.44 | -2.6% | +9.0% |

| Loop End | 2.11 | Negligible LY base | +207% |

| Glued fiber | 2.41 | -67.4% | +13.8% |

| Loose fiber | 1.69 | -59.4% | -8.9% |

Loop End Update:

  • Volume dispatched reached 166.1 Metric Tons (MT) in H1 FY27, a ~3.1x sequential increase from 54.0 MT in H2 FY25–26.
  • The company believes demand for performance-based materials is strengthening as evaluation criteria shift towards long-term durability and execution efficiency.

Orders on Hand

As of the management report date, the total combined reported order book is ₹43.10 crore.

| Business | Reported Orders on Hand |

| Kasturi Metal Composite Limited (KMCL) | ₹19.15 crore |

| Durafloor Concrete Solutions LLP | ₹23.95 crore |

| Combined Total | ₹43.10 crore |

Marquee customers listed include Hero Moto Corp, Haier, Lenskart, Perkins Engine, Vikram Solar, Jupiter Rail, Saint Gobain, Pepsi-Dubai, and Motherson Sumi.

The disclosure notes that order-book values require an as-of date, execution schedule, and consolidation reconciliation.

Plant IV Status and Capacity

  • Current Status: Wire drawing trials are reported as complete. The setup for glued and micro fiber lines is in progress.
  • Target: Commercial production is targeted for late November 2026.
  • Planned Capacity: After stabilization, the plant is expected to have a capacity of 300 to 800 MT per month.
  • Revenue contribution is stated to be dependent on successful commissioning and ramp-up.

Proposed UAE Subsidiary (Durafloor)

  • A Shareholders' Agreement (SHA) / Memorandum of Association (MOA) draft has been prepared and shared with the Joint Venture (JV) partner for finalization.
  • The financial due diligence of the JV partner has been completed.
  • The incorporation process for the UAE subsidiary is slated to begin after the SHA is signed.
  • The entire process, from SHA signing to incorporation, is targeted to be completed within 90 days.

Forward-Looking Strategies

Management outlines four key strategies for PAT recovery, dependent on operating evidence:

1. Pricing: Accepted price revisions need to improve contribution margins in actual dispatches.

2. Product Mix: Loop End growth needs to translate into verified company earnings.

3. Capacity: Plant IV needs to convert installed equipment into profitable production.

4. Execution: Orders need to convert into revenue and cash within realistic schedules.

Disclaimer and Forward-Looking Statements

The document contains forward-looking statements regarding pricing recovery, product mix, order book conversion, Plant IV commissioning, and the UAE subsidiary. These are based on current expectations and are subject to risks including raw material price volatility, customer demand, execution delays, and regulatory approvals (FEMA, UAE law). The company undertakes no obligation to update these statements except as required by law.

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