Financial Performance Summary

Q4 FY26 Consolidated Financial Performance (Rs. Mn)

  • Total Income: ₹2,870 (4.8% YoY growth from ₹2,738 in Q4 FY25)
  • Raw Material Costs: ₹1,687 (3.2% decrease YoY from ₹1,743)
  • EBITDA: ₹599 (20.1% decrease YoY from ₹750)
  • EBITDA Margin: 22.7% (down from 27.8% in Q4 FY25)
  • Finance Cost: ₹48 (13.6% increase YoY from ₹42)
  • Depreciation and Amortization: ₹32 (265.4% increase YoY from ₹9)
  • Profit Before Tax: ₹754 (1.8% increase YoY from ₹741)
  • PBT Margin: 26.3% (down from 27.0%)
  • Tax Expenses: ₹97 (14.9% decrease YoY from ₹114)
  • PAT: ₹657 (4.9% increase YoY from ₹627)
  • PAT Margin: 22.9% (flat YoY)
  • Basic EPS: ₹0.64 (10.6% increase YoY from ₹0.57)

FY26 Consolidated Financial Performance (Rs. Mn)

  • Total Income: ₹11,403 (21.2% YoY growth from ₹9,408 in FY25)
  • Raw Material Costs: ₹7,096 (17.8% increase YoY from ₹6,026)
  • EBITDA: ₹2,995 (19.3% increase YoY from ₹2,511)
  • EBITDA Margin: 27.0% (slight decrease from 27.2%)
  • Finance Cost: ₹165 (50.0% increase YoY from ₹110)
  • Depreciation and Amortization: ₹100 (194.1% increase YoY from ₹34)
  • Profit Before Tax: ₹3,060 (20.5% increase YoY from ₹2,539)
  • PBT Margin: 26.8% (slight decrease from 27.0%)
  • Tax Expenses: ₹472 (5.8% decrease YoY from ₹501)
  • PAT: ₹2,589 (27.0% increase YoY from ₹2,039)
  • PAT Margin: 22.7% (improved from 21.7%)
  • Basic EPS: ₹2.39 (24.5% increase YoY from ₹1.92)
  • ROCE: 21.7%
  • ROE: 19.6%
  • Cash flow from operations: ₹316.9 Mn

Balance Sheet Position (as of March 31, 2026)

Equity and Liabilities (Rs. Mn)

  • Equity Share Capital: ₹1,213.9 (up from ₹1,107.7 in FY25)
  • Other Equity: ₹14,731 (up from ₹9,424)
  • Total Equity: ₹15,945 (up from ₹10,532)
  • Borrowings (Current): ₹1,160 (up from ₹199)
  • Trade Payables: ₹631 (down from ₹1,180)
  • Total Current Liabilities: ₹2,241 (up from ₹1,779)
  • Total Equity and Liabilities: ₹18,508 (up from ₹12,522)

Assets (Rs. Mn)

  • Property, Plant and Equipment: ₹4,879 (up from ₹1,468)
  • Capital Work-in-Progress: ₹2,773 (down from ₹4,171)
  • Inventory: ₹1,453 (up from ₹981)
  • Trade Receivable: ₹4,251 (up from ₹3,273)
  • Cash and Cash Equivalents: ₹857 (down from ₹931)
  • Total Current Assets: ₹7,938 (up from ₹5,677)
  • Total Assets: ₹18,508 (up from ₹12,522)

Key Operational and Strategic Updates

Manufacturing Capacity Expansion

  • Developing 46-acre facility in Hattargi, Belgaum, Karnataka with machining capacity of 58,000+ MTPA and captive forging capacity of 100,000+ MTPA
  • Facility will raise total machining capacity to over 80,000+ MTPA and forging capacity to 150,000+ MTPA
  • Acquired 25-ton hydraulic hammer from Romania being installed at Belagavi campus
  • Operating four facilities across India and UAE with integrated forging, heat-treatment, and machining lines

Order Book Diversification

  • Defence, Aerospace and Railways now account for approximately 50% of total order book
  • Balanced contribution from Commercial Vehicles, Agriculture, Oil & Gas, Power Generation and Heavy Engineering
  • Received approvals to supply 180+ products across defence, aerospace, and engineering segments

Recent Business Developments

  • Signed 5-year MOU for supply of large calibre ammunition from Belgaum manufacturing campus
  • Secured maiden aerospace order from Alpha Aircraft Systems Inc., USA for precision engineered components
  • Commercialized empty shell production line with capacity of 360,000 shells per annum
  • Entered NATO supply chain

Subsidiary Update

  • Subsidiary renamed from Naya Energy Works Private Limited to Quantum Energetics Private Limited
  • Expanded object clause to include manufacturing of high energy explosive compounds (TNT, HMX, RDX, detonating compounds)
  • Subject to receipt of necessary statutory approvals and licenses

Geopolitical Impact

  • Q4 performance impacted by Middle East geopolitical developments disrupting global logistics
  • Temporary impact on India-UAE operations resulting in sequential volume decline
  • Elevated inventory and trade receivables leading to increased working capital levels
  • Management views this as short-term impact with full-year operating cash flows remaining positive

R&D and Technology

  • Dedicated R&D team of 75 people and design centre
  • Equipped with 7-axis and 11-axis machining systems and 25-ton hydraulic hammer
  • Industry 4.0-enabled automation enhancing productivity, accuracy, and traceability

Regulatory Matters

  • Income Tax Department conducted search at certain offices and manufacturing facilities during the quarter
  • Conclusion intimated to stock exchanges on January 13, 2026
  • No written communication received from Income Tax Department regarding outcome
  • Management does not foresee material adverse impact on operations or financial position
  • Enforcement Directorate transaction involved shareholder-level secondary market transfer, no company involvement

Cash Flow Analysis

  • Cash Generated from Operations: ₹455 Mn
  • Direct Taxes paid: ₹138 Mn
  • Net Cash from Operating Activities: ₹317 Mn
  • Cash Flow from Investing Activities: (₹3,540) Mn
  • Cash Flow from Financing Activities: ₹3,148 Mn
  • Net decrease in Cash and Cash equivalent: (₹74) Mn

Working Capital Metrics

  • Working capital levels remained elevated during Q4 due to geopolitical disruptions
  • Company maintains positive cash flow from operations despite temporary challenges

Future Outlook

  • Focus on strengthening precision engineering, defence, and aerospace manufacturing capabilities
  • Continued investments in advanced manufacturing technologies and capacity expansion
  • Plans to further expand manufacturing capacities through internal accruals
  • Targeting machining capacity of 80,000 TPA by FY27
  • Gross block projected to reach ₹750-800 crore by FY27