Financial Performance Summary

Quarterly Performance (Standalone):

| Particulars (₹ crore) | Q2 FY27 | Q2 FY26 | YoY Change | Q1 FY27 | QoQ Change |

| Revenue from operations | 182 | 232 | (22%) | 125 | 46% |

| EBITDA | 18 | 52 | (66%) | 10 | 84% |

| EBITDA margin | 9.6% | 22.2% | – | 7.6% | 200 bps improvement |

Half-Yearly Performance (Standalone):

  • Revenue: ₹308 Cr
  • EBITDA: ₹27 Cr

Performance Analysis

Sequential Improvement: The company delivered strong sequential recovery with revenue growing 46% quarter-on-quarter from ₹125 Cr in Q1 FY27 to ₹182 Cr in Q2 FY27. EBITDA showed even stronger growth of 84% QoQ from ₹10 Cr to ₹18 Cr.

Year-on-Year Decline: Despite sequential improvement, performance remained below previous year levels with revenue down 22% and EBITDA down 66% compared to Q2 FY26.

Margin Pressures: EBITDA margin improved 200 basis points sequentially to 9.6% but declined significantly from 22.2% in Q2 FY26. The margin contraction was primarily due to:

  • Under-absorption of fixed costs due to sub-optimal revenue levels
  • Elevated raw material costs increasing by approximately 6% due to geopolitical tensions
  • Gross margins remained resilient despite these headwinds

Order Book Position

Strong Order Book: The company reported a healthy pending order book (including Letters of Intent) of ₹941 Cr, with approximately ₹390 Cr booked for execution in FY28.

Order Book Composition:

  • Domestic: 67%
  • Exports: 33%

Business Mix Analysis:

Sector Mix:

  • Oil & Gas: 57%
  • Power & Energy: 12%
  • Other sectors: 31%

Product Mix:

  • Heat Exchangers: 27%
  • Reactors & Vessels: 66%
  • Rotary Equipment & Silos: 7%

Strategic Developments

Clean Energy Storage Solution: The company began execution in a new end-user category with a patented Clean Energy Storage solution developed with a European technology partner. A repeat order has been received, underscoring the solution's scalability and long-term potential.

Market Outlook: Management highlighted an encouraging enquiry pipeline of ₹1200 Cr, providing strong visibility for order book build-up across FY27 and FY28. Large Thermal Power projects are expected to drive strong growth for at least 3 years.

Vertical Expansion: The company plans to scale up its Technical Services vertical with a focus on improving overall profitability.

Risk Management

Amid heightened geopolitical volatility, the company is prioritizing stability, consolidation, and stronger risk management to safeguard performance. The company serves core industries including Oil & Gas and Petrochemicals, transitory and new-age energy segments (LNG/LPG and Hydrogen), and high-technology sectors (Defence, Nuclear and Aerospace).

Management Commentary

The subdued order environment caused by geopolitical disruptions over the past year resulted in lower revenue levels, but enabled proactive realignment and debottlenecking of operations. These initiatives have strengthened the execution platform and position the company to capitalize on opportunities reflected in the growing order book.