Headline Financial Results for H1 FY27

P&L Performance (₹ in lakhs):

  • Revenue: ₹9,779.38, representing 46.9% YoY growth
  • EBITDA: ₹2,633.53, representing 44.5% YoY growth
  • PAT: ₹1,926.06, representing 55.3% YoY growth
  • EBITDA Margin: 26.93% (vs 27.34% in H1 FY26)

Capacity Expansion Status (MTPA):

  • Ingot Capacity: 48,000 (Pre-expansion: Nil)
  • Forging Capacity: 55,000 (Pre-expansion: 18,000)
  • Machining Capacity: 43,000 (Pre-expansion: 8,400)

Business Performance Details

The machining division capacity expanded partially in H1 FY27, with impact starting to flow into numbers. Employee cost increased by approximately 142% vs H1 FY26 due to front-loading investment in talent, which management believes will support improved profitability in future periods.

Working Capital and Cash Flow

  • Company maintains a 90-day debtor cycle
  • Debtors increased due to incremental sales from machining division coming in the last 3 months of H1 FY27
  • Debtors recorded inclusive of GST
  • Current debtors-to-sales ratio considered a one-off, expected to normalize as sales grow and current debtors are realized
  • Negative CFO primarily attributed to increase in debtors

Capital Expenditure and Expansion Plans

Phase 1 Extension:

  • Ordered one 500-tonne and one 800-tonne press along with specialized CNC machines
  • Total extension capex: approximately ₹58 crore (₹5,800 lakh)
  • Advances paid sit in Loans & advances
  • Expected to add: 15,000 MTPA to forging capacity and 10,000 MTPA to machining capacity
  • Expected commercial production commencement: start of Q4 FY27

Phase 1 Status:

  • Went live on September 18, 2026
  • Commercial production commenced from November 12, 2026 after trial runs and statutory approvals
  • Entire capital work-in-progress is for Phase 1 only

Final Phase 1 Capacity Post Extension (MTPA):

  • Ingot: 48,000
  • Forging: 55,000
  • Machining: 43,000

Phase 2 Expansion:

  • Machines ordered from SMS, Italy worth approximately ₹90 crore (₹9,000 lakh)
  • Relevant infrastructure for Phase 2 also ordered
  • Payments started in H2 FY27
  • Expected go-live: Q4 FY28

Operational Outlook and Guidance

  • Capacity utilization target: more than 80% by Q4 FY27 based on internal assessment, orders in hand, and new enquiries
  • Order book: Not disclosed due to contractual obligations and strategic business reasons
  • Guidance: Reiterated triple-digit growth in revenue and profitability over the next few years
  • Focus areas: Scaling volumes, moving up value chain, building new capabilities, developing new products, entering new industries, securing relevant approvals
  • Backward integration expected to ensure raw material security and improve product quality

Risk Factors

  • Middle East conflict: No major impact on operations, but maintaining buffer stock to mitigate supply chain risks
  • Forward-looking statements subject to market conditions, regulatory changes, and operational challenges