Financial Performance (Consolidated)

All figures in Rs. Mn unless specified

Q1 FY27 Key Metrics:

  • Revenue from Operations: ₹3,007 Mn (29.0% YoY growth from ₹2,332 Mn in Q1 FY26)
  • Other Income: ₹39 Mn (129.7% YoY growth from ₹17 Mn)
  • Total Income: ₹3,046 Mn (29.7% YoY growth)
  • Raw Material Costs: ₹1,915 Mn (32.9% YoY increase)
  • EBITDA: ₹848 Mn (17.3% YoY growth from ₹723 Mn)
  • EBITDA Margin: 28.2% (vs 31.0% in Q1 FY26)
  • Finance Cost: ₹46 Mn (105.9% YoY increase from ₹22 Mn)
  • Depreciation and Amortization: ₹33 Mn (96.5% YoY increase from ₹17 Mn)
  • Profit Before Tax: ₹807 Mn (15.3% YoY growth from ₹700 Mn)
  • PBT Margin: 26.5% (vs 29.8% in Q1 FY26)
  • Tax Expenses: ₹146 Mn (12.5% YoY increase from ₹130 Mn)
  • Profit After Tax: ₹661 Mn (15.9% YoY growth from ₹570 Mn)
  • PAT Margin: 21.7% (vs 24.3% in Q1 FY26)
  • Basic EPS: ₹5.49 per share (8.9% YoY growth from ₹5.04)

Quarterly Comparison:

  • Sequential Revenue growth: 14.1% from Q4 FY26 (₹2,636 Mn)
  • Sequential EBITDA growth: 41.5% from Q4 FY26 (₹599 Mn)
  • Sequential PAT growth: 0.5% from Q4 FY26 (₹657 Mn)

Key Business Updates and Strategic Developments

Defence Manufacturing Milestones:

  • Commissioned a fully indigenous 360,000 shells per annum large-caliber ammunition shell line at Belgaum facility
  • Entered into 5-year binding MoU with NATO-affiliated entity for supply of large-caliber ammunition shells
  • Secured order for 30,000 units of 152mm artillery shells from leading Indian energetics player, with supplies commencing June 2026
  • Inducted into NATO supply chain for manufacture of artillery shell bodies and mission-critical components
  • Successfully produced ERFB BB/BT shells, becoming among select few manufacturers with this capability

Aerospace Sector Entry:

  • Secured maiden aerospace order from Alpha Aircraft Systems Inc., USA
  • Marked company's entry into global aerospace sector and validation of precision engineering capabilities

Capacity Expansion and Capability Enhancement:

  • Commercialized high-precision machining line with advanced 7-Axis and 11-Axis CNC machines at Belgaum facility
  • Developing 46-acre facility with machining capacity of 58,000+ MTPA and captive forging capacity of 100,000+ MTPA
  • Total capacity expansion target: Machining Capacity to 80,000+ MTPA and Forging Capacity to 150,000+ MTPA
  • Added 25-ton hydraulic hammer, 8,000-ton mechanical presses, and multi-axis machining lines

Product Portfolio Expansion:

  • Commenced production and dispatches of large gear blanks, road wheel arms, and other heavy forged components
  • Initiated serial production of 152mm and 155mm empty shells
  • Started production and supplies of aluminium forged and machined components for defence sector

Subsidiary Development:

  • Quantum Energetics Private Limited (subsidiary) entered advanced energetics segment with plans to manufacture TNT, RDX, HMX and allied products, subject to requisite approvals

Credit Rating Upgrade:

  • ICRA upgraded company's credit rating to [ICRA]A-(Stable) / [ICRA]A2+ across bank facilities

Operational Capabilities

Manufacturing Infrastructure:

  • Four facilities across India and UAE with integrated forging, heat-treatment, and machining lines
  • 16-ton hydraulic hammer, 8,000-ton mechanical presses, CNC machines and robotic systems
  • Facilities acquired from Mercedes-Benz Truck AG (Germany), Thyssenkrupp AG (France), and Ursus SA (Poland)

Current Capacity:

  • Forging Capacity: 100,000+ MTPA (planned increase to 150,000+ MTPA)
  • Machining Capacity: 52,000+ MTPA (planned increase to 80,000+ MTPA)

Support Infrastructure:

  • State-of-the-art metallurgical testing laboratory at Hattargi plant (pursuing NABL accreditation)
  • Fully integrated in-house tool room and die shop
  • Advanced heat treatment shop with PLC & SCADA-based automation
  • Highly automated industrial coating and paint shop

R&D and Innovation

  • Dedicated R&D team of 75 people with nearly 4 decades of domain expertise
  • Design centre focused on new product development and process optimisation
  • Industry 4.0-enabled automation enhancing productivity, accuracy, and traceability
  • Projects focused on exploring new material chemistries and applications

Order Book and Market Diversification

  • Defence, Aerospace and Railways now account for approximately 50% of order book (increased from 5% in FY24 to 13% in FY26)
  • Balanced contribution from Commercial Vehicles, Agriculture, Oil & Gas, Power Generation and Heavy Engineering
  • Serves 25 global OEMs across 80 countries

ESG Initiatives

  • Net Zero Emissions target: Carbon Neutral Operation by 2040
  • Water Management: Achieve 100% Water Recycling by 2027, Zero Liquid Discharge by 2037
  • Renewable Energy: Transition to 100% Renewable Energy by 2035
  • Waste Management: Reduce Total Waste Generation by 2030
  • Diversity: 20% Increase Women's Representation In Leadership By 2030
  • CSR: ₹15.7 Mn spent on CSR in FY26, benefiting 620 individuals
  • Certifications: ISO 14001:2015 Environmental Management System, ISO 45001:2018 Occupational Health and Safety

Growth Strategy Outlook

  • 3-5 year strategy focuses on expanding capacity, enhancing technology, and strengthening global presence
  • Pursuing diversification into precision-led sectors including defence platforms and aerospace assemblies
  • Expansion funded through internal accruals and potentially Foreign Currency Convertible Bonds (FCCBs)
  • Alignment with Government's "Make in India" vision for defence localization and global export opportunities