Financial Performance Highlights

Q2 FY27 Performance

  • Revenue: ₹345 Cr, representing 23% year-on-year growth
  • Gross Margin: 34.2%, impacted by higher steel and raw material prices in inflationary environment
  • EBITDA: ₹38 Cr, showing 9% year-on-year growth

H1 FY27 Performance (6 months ended September 30, 2026)

  • Revenue: ₹654 Cr, representing 23% year-on-year growth
  • EBITDA Margin: Approximately 11% (held steady)
  • Gross Profit: ₹230.7 Cr with Gross Margin of 35.3%
  • Employee Costs: ₹63.7 Cr
  • Other Expenses: ₹93.6 Cr
  • EBITDA: ₹73.4 Cr
  • Depreciation: ₹10.0 Cr
  • Finance Cost: ₹2.0 Cr
  • Profit Before Tax: ₹73.3 Cr with PBT Margin of 11.2%
  • Tax: ₹18.8 Cr
  • Profit After Tax: ₹54.5 Cr with PAT Margin of 8.3%
  • EPS: ₹31.3

Management Commentary & Strategic Updates

Growth Drivers

Management highlighted three key growth drivers:

1. Exports: Middle East served through Dubai hub remains primary export market, with expansion of international distributor network and exploration of European opportunities

2. Product Mix: Scaling up technology-led, higher-value offerings in welding equipment including advanced digital and automation-ready machines; expanding specialized consumables for demanding applications

3. Customer Engagement: Deepening direct relationships with key customers while maintaining distributor partnerships through technical support and training

Automation Strategy

Automation remains strategic priority with focus on:

  • Strengthening robotics, cobot and Industry 4.0 capabilities
  • Ador WelDoS digital welding management solution
  • Evaluation of acquisition opportunities to accelerate growth in automation segment

Market Context

Demand remained healthy across core user industries: infrastructure, power, oil & gas, railways, shipbuilding, defence and heavy fabrication, supported by strong capital goods activity in India.

Corporate Action

  • Board declared interim dividend of ₹7.50 per equity share to mark company's 75th anniversary

Operational Highlights

Global Presence

  • Serves 15+ countries worldwide across North America, South America, Europe, Middle East & Africa, Central & South Asia, and Australia

Manufacturing Infrastructure

  • Total manufacturing footprint: 1.2 million sq. ft. across India
  • 3 Welding Consumables Facilities: Raipur, Silvassa, Bengaluru
  • 1 Welding Equipment & Automation Facility: Pune
  • 1 Maintenance & Repair Facility: Nagpur

Product Portfolio

Welding Consumables: Includes submerged arc welding products

Welding Equipment: Main power supply operated arc welders for SMAW, GTAW, GMAW, FCAW, SAW applications ranging from 200-1200 Amp; Diesel engine operated welding generators; Motor generator type SMAW welders; Battery operated eco-friendly SMAW welder; Industrial gas equipment; Personal protective equipment; Welding accessories

Industrial Maintenance & Repair: Low heat input welding alloys, cobalt & nickel based alloys, reclamation services, wear parts & components, flares & process equipment, flux cored arc welding wires, tubular electrodes, composite wear plates, wear-resistant tiles, refractory compounds & solutions

Strategic Partnerships

  • Hypertherm: Master Distributor for Air Plasma Cutting System in India
  • Miller: Partner for key products including Submerged Arc Welding (Twin, Tandem & Multi-Wire Systems) and High Amp MIG Welding Solutions
  • Liburdi Dimetrics: Strategic partner for orbital welding technologies including orbital welding systems, high-precision automated welding solutions, and gas turbine repair technologies

New Product Introductions

Consumables:

  • NPCIL-approved products for nuclear application
  • Expanded High Alloy and Nickel Base Product Portfolio for critical welding applications

Automation:

  • Axbot 101 standard advance cobotic solution launched
  • Customized laser welding robotics solutions
  • Strategic collaboration with Miller for Submerged Arc Product Solutions
  • Strengthened robotic equipment portfolio - Champ Multi 400/500R, Champ Pulse 400/500iR
  • CNC Bevel Cutting & H2 Cutting solutions
  • Customized automatic solution - Ador Xlogic Welding Cell

Approvals & Certifications

  • ISO 9000 series certification for all manufacturing plants
  • Silvassa plant awarded GreenCo Silver Rating by CII-Sohrabji Godrej Green Business Centre
  • Recent awards: CII Award for Excellence in Industrial R&D 2026; CII Industrial Innovation Award 2025; India's Best Design Project 2025 for RHINO-E; Forbes Asia "Best Under a Billion" 2011 & 2012

Industry Outlook

Welding industry remains integral to India's manufacturing ecosystem supporting infrastructure, engineering, automotive, railways, defence, shipbuilding, energy and construction. Despite global headwinds, India maintained strong growth momentum with robust demand across consumables, equipment and automation solutions. Shift toward advanced technologies including robotic welding, digital power sources, and laser applications continues.

Growth Opportunities Identified

  • Rising demand for high-performance, technology-driven welding solutions
  • Increasing adoption of automation and robotics in smart manufacturing
  • Expansion of aftermarket services across repairs, maintenance, and spares
  • Government policy support for domestic manufacturing and BIS compliance
  • Availability of skilled workforce

Historical Financial Context (Reference Only)

The presentation included historical financial data for context:

FY26 Performance:

  • Revenue: ₹1,140.0 Cr
  • Gross Margin: 37.8%
  • EBITDA: ₹132.0 Cr (11.6% margin)
  • Exceptional Items: Onerous Cost & Liquidated Damages of ₹24.8 Cr related to delayed turnkey project; Impairment Reversal of ₹14.1 Cr from recovered Kuwait project receivable
  • PAT: ₹82.0 Cr (7.2% margin)
  • EPS: ₹47.1

Balance Sheet Position as of September 30, 2026:

  • Total Equity: ₹569.6 Cr
  • Total Liabilities: ₹251.9 Cr
  • Total Assets: ₹821.6 Cr
  • Current Assets: ₹554.0 Cr (including Inventories ₹177.1 Cr, Trade Receivables ₹204.8 Cr)
  • Cash & Cash Equivalents: ₹20.4 Cr

ESG Initiatives

  • 50% reduction in water consumption through rainwater harvesting and leak elimination
  • 9.6 MT reduction in plastic consumption through alternative packaging
  • Reduction in carbon emissions through solar energy adoption
  • 114 tons of trees planted in partnership with local government bodies

Governance Structure

Board of Directors:

  • Nagpal Ninotchka Malkani (Executive Chairman)
  • Aditya Tarachand Malkani (Managing Director & CEO)
  • Dr. Deep Ashda Lalvani (Non-Executive Director)
  • Ravin Ajit Mirchandani (Non-Executive Director)
  • Tanya Halina Advani (Non-Executive Director)
  • Nita Dempo Mirchandani (Non-Executive & Independent Director)
  • Navroze S. Marshall (Non-Executive & Independent Director)
  • Santosh Janakiram Iyer (Non-Executive & Independent Director)
  • Jitendra Hiru Panjabi (Non-Executive & Independent Director)
  • Mihir Jayaraman (Non-Executive & Independent Director)

Investor Relations Contacts

  • Mr. Vinayak M. Bhide – Company Secretary & Compliance Officer
  • Strategic Growth Advisors Pvt. Ltd. - Mr. Deven Dhruva / Mr. Ronak Jain